POSCO Group and SK On have entered into a long-term agreement for lithium supply, reinforcing their efforts to expand in the European and North American electric vehicle battery markets. The contract was formalized on February 24 at SK On’s Green Campus in Jongno-gu, Seoul, with Park Jong-jin, Head of Strategic Purchasing at SK On, and Lee Jae-young, Head of Energy Materials Business at POSCO Holdings, in attendance.
Under the terms of the deal, POSCO Group will deliver up to 25,000 metric tons of lithium to SK On between 2024 and 2028. This volume is sufficient to manufacture cathode materials for approximately 400,000 electric vehicles. Supply is scheduled to begin in the second half of this year, following completion of the 4M certification process for lithium sourced from the Hombre Muerto salt flat operated by POSCO Argentina. The 4M certification is recognized by global battery manufacturers as a benchmark for material quality and production stability.
SK On views supply chain resilience as critical to its mid- to long-term competitiveness, given the concentration of lithium processing in select regions. The company aims to adapt swiftly to global fluctuations in raw material availability and cost.
For POSCO Group, this represents its largest lithium supply commitment since launching commercial production in Argentina in 2024. The agreement secures a key customer in two of the world’s fastest-growing EV markets, where stringent quality standards apply. POSCO has also broadened its resource base by acquiring stakes in Australia’s Mineral Resources lithium mine and finalizing plans to develop the LIS salt flat in Argentina.
Looking ahead, both companies will explore joint strategies for serving the fast-expanding energy storage system (ESS) market with Argentine lithium and for collaborating on spent-battery recycling through POSCO HY Clean Metal, POSCO Group’s secondary battery recycling arm.
“This partnership enhances our raw material security and supports expansion into ESS applications,” said Park Jong-jin. Lee Jae-young added, “We have secured key growth drivers for our secondary battery materials business and will work with SK On to develop new global markets.”
Source: Business Korea
