POSCO Future M announced on October 2, 2026, that it has signed a contract to supply SK On with lithium iron phosphate (LFP) cathode materials. The agreement is valued at approximately KRW 1.1 trillion and covers three years from 2027 through 2029. It can be extended for another two years by mutual agreement.
The deal is POSCO Future M’s first cathode material supply contract with SK On, expanding an existing relationship under which it supplies the battery maker with anode materials. The company said the agreement means it now supplies cathode and anode materials to all three Korean battery makers, broadening its customer portfolio.
The contract follows a long-term agreement announced last month to supply 190,000 tons of LFP cathode materials to another Korean battery maker. POSCO Future M is adding LFP products to a cathode material portfolio previously centered on nickel-cobalt-manganese and nickel-cobalt-aluminum chemistries.
To support the new business, the company has converted part of its high-nickel cathode material production lines at its Pohang plant to LFP production. Mass-production supply is scheduled to begin at the end of this year, and additional lines may be converted as further orders are secured.
POSCO Future M also plans to apply a new process using lithium from salt lakes in Argentina, supported by raw material supply chain cooperation across POSCO Group. The company said the process is intended to improve the cost competitiveness and quality of its LFP cathode materials.
The company is also expanding its anode material operations. It signed a KRW 1 trillion long-term synthetic graphite supply contract with a global automaker in March this year and plans to invest approximately KRW 357 billion in a new synthetic graphite anode material plant in Vietnam. A spherical graphite processing plant under construction in Jeonbuk is scheduled for trial operation in early 2027 and full-scale mass production in the second half of the year.
Source: poscofuturem.com
