SK On signs 1.1 trillion won deal with Posco Future M — Korea Herald
In South Korea, battery manufacturer SK On has signed an agreement with Posco Future M to supply lithium iron phosphate (LFP)-based cathode materials worth 1.1 trillion won, or about $815 million. The contract is set for three years, from 2027 to 2029, Korea Herald reports.
Materials for energy storage systems
Posco Future M will supply SK On with LFP cathode materials. SK On will use them to produce LFP batteries for energy storage systems (ESS) at its plant in the U.S. state of Georgia.
The companies will also discuss the possibility of extending the supply agreement beyond 2029 as part of a long-term partnership.
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Lithium from Argentina and production in Pohang
The materials will be produced using lithium sourced from Argentina’s salt flats through Posco Group’s raw material supply network. Posco Future M plans to use a new production process intended to improve product quality and price competitiveness.
The company is converting part of its high-nickel cathode material production lines in Pohang to manufacture LFP materials. Mass production is planned to begin by the end of the year. SK On’s head of raw material procurement, Kim Sung Tan, said the company is focused on creating a China-free supply chain and expanding its ESS business in North America.
