South Korean battery materials supplier Posco Future M plans to supply LG Energy Solution (LGES) with 720,000 tonnes of cathode and anode materials between 2027 and 2033, under an expanded cooperation agreement between the companies.
The partners have signed a memorandum of understanding covering lithium iron phosphate (LFP) cathodes, synthetic graphite, ultra-high-nickel cathodes and materials for future battery technologies, including sodium-ion batteries and silicon anodes.
The companies intend to finalise a formal supply contract later this year. They have not disclosed how the total volume will be divided among the different materials.
LFP Production to Begin in 2027
Posco Future M plans to convert existing high-nickel cathode production lines at its Pohang facility to manufacture LFP materials. Initial deliveries to LGES are expected to begin in early 2027, with some production lines already undergoing conversion.
The company also plans to introduce a manufacturing process using lithium sourced from salt lakes in Argentina, where its parent group operates resources. The approach is intended to reduce production costs and strengthen control over raw material supplies.
Expanded Cooperation on Anode Materials
The agreement also covers synthetic graphite production in South Korea and Vietnam. Posco Future M identifies fast-charging performance and battery lifespan as key advantages of its synthetic graphite materials.
Beyond existing products, the companies plan to jointly develop materials for sodium-ion batteries, silicon anodes and ultra-high-nickel cathodes.
Their cooperation will also extend to existing nickel-cobalt-manganese (NCM) battery material supplies. The partners aim to increase the use of recovered metals from end-of-life batteries to improve cost efficiency and strengthen material recycling.
Supply Chain Security and Market Requirements
Posco Future M and LGES also intend to coordinate their responses to changing supply chain regulations and geopolitical risks in major markets, particularly the United States and Europe.
The expanded agreement comes as battery manufacturers adjust investment strategies following weaker electric vehicle demand in 2024. Rather than focusing exclusively on high-nickel battery materials, the latest partnership covers LFP technology, synthetic graphite and emerging chemistries.
The broader material portfolio is intended to support applications across electric vehicles, stationary energy storage and future battery generations.