'40 Trillion Won Anode Material Boom' POSCO Chemical Signs Long-Term Supply Contract with Samsung SDI

10-Year Supply of High-Nickel Cathode Materials for Electric Vehicles
Largest Supply Contract in Company History Signed

POSCO Chemical and Samsung SDI have signed a mid- to long-term supply contract for cathode materials. Choi Yoon-ho, President of Samsung SDI (left in the photo), and Kim Jun-hyung, President of POSCO Chemical (right), are taking a commemorative photo. Photo by POSCO Chemical

[Asia Economy Reporter Jeong Dong-hoon] POSCO Chemical will supply high-nickel (nickel content over 90%) cathode materials worth 40 trillion KRW to Samsung SDI.

POSCO Chemical announced on the 30th that it has signed a contract to supply high-nickel NCA cathode materials for electric vehicle batteries to Samsung SDI for 10 years from this year until 2032. This 40 trillion KRW contract is the largest and longest order in POSCO Chemical's history.

Through this contract, POSCO Chemical will expand its product portfolio to include NCA (nickel-cobalt-aluminum) cathode materials in addition to the NCM (nickel-cobalt-manganese) and NCMA (nickel-cobalt-manganese-aluminum) cathode materials it has mainly produced so far, and secure Samsung SDI, which supplies batteries to various global automakers, as a new customer, laying the foundation for another quantum leap.

Cathode materials account for more than 40% of the battery cost and are key materials that determine capacity and output. They are manufactured using raw materials such as lithium, nickel, cobalt, manganese, and aluminum, and the characteristics and performance of electric vehicle batteries vary depending on the composition of the raw materials.

Since starting its cathode material business in 2012, POSCO Chemical has actively promoted research and development for product diversification in line with the rapid growth of the electric vehicle market and the increasingly segmented customer demands, currently holding five product lines. It is also developing LFP (lithium iron phosphate) cathode materials for entry-level electric vehicles, and the product lineup is expected to diversify further depending on future market conditions.

Along with this, Samsung SDI, which has formed a partnership with POSCO Group that has secured the full value chain from securing lithium and nickel mining rights to material production and recycling, has established a stable supply chain of essential core materials necessary for expanding its global battery business.

Going forward, POSCO Chemical plans to further strengthen its long-term cooperative relationship with Samsung SDI to target the electric vehicle market based on stable global mass production capacity and raw material competitiveness.

Choi Yoon-ho, President of Samsung SDI, said, "Through this cooperation with POSCO Chemical, we have secured a long-term solid trust relationship, laying the foundation for both companies to achieve large-scale growth over the long term. In particular, we expect this to accelerate the achievement of Samsung SDI's vision to become a global top-tier company in the rapidly growing electric vehicle battery market."

Kim Jun-hyung, President of POSCO Chemical, said, "Our efforts to expand customers and portfolios and enhance business competitiveness in response to the rapidly growing electric vehicle market have borne fruit. Through close cooperation with Samsung SDI, we will produce world-class cathode materials and further strengthen our position as a global leader in battery materials."

This content was produced with the assistance of AI translation services.