POSCO Future M secures $470 mil anode material deal with global automaker
Energy firm POSCO Future M will supply secondary battery materials to a major automobile company for up to 10 years starting in 2027, clinching a deal worth 671 billion won ($470 million).
The POSCO Group subsidiary said Tuesday it will supply secondary battery anode materials to a company whose name was withheld under the contract’s confidentiality terms.
The deal’s value covers only the first four years but is still the largest since the company entered the anode material business in 2011. If extended until 2037, the total value will rise to 1.7 trillion won, the company said.
The deal comes as the global electric vehicle (EV) industry faces growing demand for diversified supply chains for anode materials. So far, Chinese firms have dominated the global anode material market, accounting for all of the top 10 suppliers and 80 percent of global market share.
To reduce reliance on inexpensive Chinese anode materials, the United States plans to impose high tariffs on these imports. China, in turn, is seeking to tighten control over the export of strategic materials and finished secondary batteries to restrict supplies to the U.S. if necessary.
POSCO Future M ranks as the world’s 11th-largest anode material producer with a 1.3 percent market share, positioning itself as the leading alternative to Chinese suppliers. The company currently provides anode materials to Korea’s largest battery makers — LG Energy Solution, SK On and Samsung SDI — and in July signed a new supply deal with a Japanese battery manufacturer.
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POSCO Future M secures $470 mil anode material deal with global automaker, source
