Samsung SDI signs $33 bn 10-year cathode supply deal with POSCO Chemical

Korean battery maker Samsung SDI signed a 40 trillion won ($33 billion) 10-year cathode supply deal with POSCO Chemical. POSCO said the deal was the largest in its history. Analysts said it enables Samsung SDI to compete with larger rivals LG Energy Solution and SK On.

POSCO, also of Korea, said the contract is to supply high-nickel NCA cathodes for electric vehicle (EV) batteries to Samsung SDI for 10 years up to 2032. It has expanded its product portfolio to include NCA cathodes on top of NCM and NCMA cathodes, which POSCO said have so far been the company’s principal products. Samsung SDI becomes a new client.

POSCO is also developing lithium ferro-phosphate (LFP) cathodes for low-end EVs. It thus sees further diversification in the future.

Samsung SDI president Choi Yoon-ho said: “Now that we’ve established a firm, long-term relationship of trust with POSCO Chemical through this instance of cooperation, the foundation has been laid for the two companies to achieve long-term, large-scale growth together. Through this, we expect to accelerate the achievement of our vision of becoming a global top-tier company in the rapidly growing electric vehicle battery market.”

Last year, Posco completed its largest cathode material production facility which will have a capacity of 90,000 tonnes.

POSCO Chemical’s ongoing cathode orders

Source: POSCO

Photo: Samsung SDI president Choi Yoon-ho (left) and POSCO Chemical president Kim Jun-hyeong signed cathode supply contract.