720,000 tons! The world's third-largest battery power company has placed orders for battery materials.

Recently, POSCO Future M (POSCO Future Materials) announced that it has signed a "Future Cooperation Business Agreement" with LGES (LG Energy Solution), expanding the cooperation scope to include lithium iron phosphate (LFP) cathode materials and artificial graphite anode materials. Both parties plan to sign a formal contract within this year.

According to the information, POSCO Future Materials is a core battery material subsidiary of the Korean POSCO Group and is the only company in South Korea that produces both cathode and anode materials. Its headquarters is located in Pohang City, South Gyeongsang Province, South Korea.

LGES is a battery subsidiary of LG Chem that was spun off from LG. Its headquarters is located in Seoul, and its products cover power batteries, energy storage systems (ESS), and small batteries. According to the latest data from the South Korean research institute SNE Research, in the first three quarters of 2026, LGES' power battery shipment volume was 81.9 GWh, ranking third globally.

In addition to the previously collaborated ternary cathode materials, the agreement also includes LFP (lithium iron phosphate), artificial graphite anode materials, sodium-ion batteries, silicon anode materials, and other next-generation product supply and technology development cooperation. Both parties plan to specifically define product diversification and supply roadmap and sign a formal contract within this year.

According to the agreement, POSCO Future Materials will supply a total of 720,000 tons of cathode and anode materials to LGES over a period of 7 years from 2027 to 2033.

POSCO Future Materials stated that recently, with the expansion of AI data centers and the increase in sales of popular electric vehicles, the demand for LFP cathode materials has surged. In response, the company plans to accelerate the conversion of its high-nickel ternary cathode material production line to an LFP cathode material production line, starting to officially supply LFP cathode materials to LGES from the beginning of next year, and plans to further strengthen the competitiveness of its cathode and anode material business based on the value chain of lithium salt lakes and graphite mines within the POSCO Group, further consolidating its position as a core strategic resource company within the group.

The Battery Network noted that in addition to LGES, in this year, POSCO Future Materials also signed LFP cathode material supply agreements with two other major Korean battery giants:

On September 22, POSCO Future Materials reached a LFP cathode supply contract worth approximately 1.1 trillion won, with a basic supply period from 2027 to 2029. Both parties also agreed to extend the contract period by another two years to 2031 based on market demand. This is the first cathode material supply contract between the two parties, and previously their cooperation was limited to anode materials.

On October 6, POSCO Future Materials signed a long-term LFP cathode supply contract worth 6 trillion won with Samsung SDI, covering the supply period from 2027 to 2032. This contract is an amendment and expansion of the 2023 supply agreement. It adds LFP cathode materials to the existing ternary cathode materials.

Through these agreements, POSCO Future Materials' LFP cathode materials have successfully entered the supply chain of the three major South Korean battery manufacturers.

In addition, POSCO Future Materials has also secured large-scale long-term contracts for artificial graphite anode materials from important automotive customers worldwide. The company also mentioned that it produces artificial graphite anode materials in South Korea and Vietnam and supplies them to LGES.

On November 3, POSCO Future Materials announced that it had signed an investment intention letter with the Hyundai Motor Group to jointly launch the artificial graphite cathode material business in Vietnam.

It is reported that the Hyundai Motor Group is reviewing a 100 billion won equity investment in POSCO Future Materials' ongoing artificial graphite anode material project in Vietnam and seeking priority purchase rights for artificial graphite anode materials.

POSCO Future Materials invested approximately 357 billion won in the construction of an artificial graphite cathode material factory in Taeru District, Vietnam, this year. The company has signed the order contract for the first phase of investment with the client. The goal is to start mass production in 2028. Currently, efforts are being made to secure the second phase of investment.