Electric cars and energy storage setups are changing quickly, and battery makers are adapting just as fast. South Korean suppliers POSCO Future M and LG Energy Solution are partnering to ensure that shift has an ample supply of materials.

POSCO Future M signed a Future Cooperation MOU (Memorandum of Understanding) with LG Energy Solution. Under the deal, POSCO Future M expects to supply 720,000 tons of cathode and anode materials to LG Energy Solution over seven years, running from 2027 through 2033. Both sides plan to settle product roadmaps and sign a formal contract before the end of the year.

Shifting Gears to Meet Demand

POSCO Future M’s Pohang cathode material plant; Photo: POSCO Future M

A large part of the plan centers on lithium iron phosphate (LFP) cathode materials. Demand for LFP is climbing fast, thanks to cheaper electric cars and power-hungry AI data centers.

To keep up, POSCO Future M plans to convert high-nickel production lines at its Pohang plant into LFP lines, aiming to start full-scale supply to LG Energy Solution early next year. Later on, they want to cut costs even further by tapping into POSCO Group’s lithium resources from salt lakes in Argentina.

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The deal also covers synthetic graphite anode materials, produced in Korea and Vietnam. These help batteries charge faster and hold up better over time, making them a great fit for modern electric vehicles. For existing nickel-cobalt-manganese materials, the teams plan to recycle metals from spent batteries to keep production costs down.

Building for the Long Haul

Both teams agreed to collaborate on advanced tech, including materials for sodium-ion batteries, ultra-high-nickel cathodes, and silicon anode materials.

The two companies also plan to navigate shifting global trade rules as a team. That includes keeping an eye on prohibited foreign entity requirements in the U.S. and Europe’s Industrial Accelerator Act.

This move matches POSCO Group’s broader plan to become a national supplier of critical resources. With its own lithium reserves and graphite mines, POSCO Future M is setting up a steady, practical supply chain to keep electric cars and hardware moving forward.