POSCO Group and Honda Join Forces in Electric Vehicle Business... Joint Response to IRA and CRMA

by Choi Seoyoon

Published 12 Apr.2023 08:51(KST)

Cooperation Areas Expanded from Existing Steel Sector to Secondary Battery Materials

POSCO Group and Japan's Honda have decided to establish a comprehensive cooperation system in the electric vehicle sector. The scope of collaboration will be expanded from the existing steel sector to secondary battery materials.

On the 11th, POSCO Group and Honda announced that they signed a "Comprehensive Memorandum of Understanding (MOU) on Electric Vehicle Business" at the POSCO Center in Gangnam-gu, Seoul, with key executives from both companies including Choi Jeong-woo, Chairman of POSCO Group, and Toshihiro Mibe, President of Honda. They agreed to actively cooperate in response to the global electric vehicle market, which is expected to continue growing.

According to market forecasts, global electric vehicle demand is expected to increase from approximately 13.57 million units this year to about 22.36 million units in 2025, and approximately 59 million units by 2030. Accordingly, the two companies plan to strengthen cooperation in the existing steel sector and discuss new collaboration in secondary battery materials, including cathode and anode materials, solid-state battery materials, and recycling.

The two companies will first review cooperation in the secondary battery materials sector, such as the supply of cathode and anode materials. They will promote joint technology development for solid-state battery materials through regular exchange meetings. They will also prepare a plan to link Honda’s electric vehicle business with POSCO Group’s global recycling business.

On the 12th, at the POSCO Center in Gangnam-gu, Seoul, Choi Jeong-woo, Chairman of POSCO Group, and Toshihiro Mibe, President of Honda, are taking a commemorative photo after signing a comprehensive memorandum of understanding on the electric vehicle business.
[Photo by POSCO Group]

In the steel sector, in addition to the existing supply of automotive steel sheets, they will discuss expanding the application of eco-friendly steel sheets for carbon neutrality, motor cores for electric vehicles, and non-oriented electrical steel sheets for motors.

POSCO Group and Honda plan to form working-level teams by sector in the future to promote mid- to long-term cooperation and regular exchange meetings for overseas expansion of steel and secondary battery materials businesses.

Additionally, the two companies will jointly respond to global electric vehicle supply chain issues such as the U.S. Inflation Reduction Act (IRA) and the European Critical Raw Materials Act (CRMA). They will consider establishing a joint response system based on POSCO Group’s capabilities in lithium, nickel, cathode and anode materials, recycling, and Honda’s mid- to long-term global electric vehicle business expansion strategy.

Chairman Choi said on the day, "Expanding the partnership between Honda and POSCO Group from the existing steel sector to the secondary battery materials sector will be an opportunity for mutual win-win between POSCO Group’s full value chain strategy for secondary battery materials and Honda’s electric vehicle expansion strategy."

President Mibe said, "Honda aims to achieve carbon neutrality by 2050 for all product lines it handles. We will expand our partnership with POSCO Group, which has capabilities and know-how in a wide range of areas including secondary battery materials, recycling, automotive steel sheets, non-oriented electrical steel sheets, and electric vehicle parts, to achieve this goal."

POSCO Group is the only company in the world to establish a value chain that produces and supplies secondary battery material raw materials such as lithium, nickel, and graphite, as well as precursors, cathode and anode materials, and next-generation secondary battery materials. They have set a goal to build a production and sales system by 2030 for 610,000 tons of cathode materials, 320,000 tons of anode materials, 300,000 tons of lithium, and 220,000 tons of nickel, aiming to achieve sales of 41 trillion KRW in the secondary battery materials business alone.

Honda is a global comprehensive mobility company encompassing motorcycles, automobiles, aircraft, and robots, ranking first in global motorcycle sales. By 2030, Honda plans to invest a total of 40 billion USD (approximately 52 trillion KRW) to strengthen its electric vehicle competitiveness and aims to lead the global electric vehicle competition through cooperation with General Motors (GM), Sony, and joint ventures with battery manufacturers such as LG Energy Solution.