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POSCO Future M bags 30.3 tln-won cathode deal from LG Energy Solution
SEOUL, April 26 (Yonhap) -- Major South Korean battery components maker POSCO Future M Co. said Wednesday it has won a 30.3 trillion-won (US$22.6 billion) order to supply cathodes for LG Energy Solution Ltd., the country's top battery maker.
The deal calls for POSCO Future M to provide LG Energy Solution with high-nickel cathodes over the next seven years, the chemical materials unit of steel giant POSCO Holdings Inc. said in a statement.
Those products consist of nickel, cobalt and aluminum (NSA) cathodes, as well as nickel, cobalt, manganese and aluminum (NCMA) cathodes, POSCO Future M said.
Cathodes determine the power and range of electric vehicle (EV) battery cells. They account for more than 40 percent of a cell's production cost.
The mega-deal comes three months after POSCO Future M signed a 40 trillion-won contract to manufacture cathodes for another local battery giant Samsung SDI.
POSCO Future M has been expanding its battery materials business since its advance into the sector in 2011.
In July 2022, POSCO Future M clinched a mega-contract with Ultium Cells LLC, a joint venture between LG Energy Solution Ltd. and General Motors Co.
POSCO Future M said it is stepping up efforts to diversify its product portfolio to meet growing demand and boost its production capacity.
POSCO Future M currently runs domestic and overseas cathode factories with a combined annual capacity of 105,000 tons. The company said it is seeking to raise its annual production capacity to 610,000 tons in 2030.
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