Chairman Choi says, “We expect to grow together for the next 100 years through this business cooperation.”
POSCO Holdings and LG Energy Solutions will further strengthen cooperation related to the rechargeable battery business
With global supply chain issues emerging as a pending issue due to the United States-Mexico-Canada Agreement (USMCA) and the Inflation Reduction Act (IRA), the POSCO Group and global battery leader, LG Energy Solutions plans to further strengthen its cooperative relationship to further enhance its competitiveness.
The two companies signed a memorandum of understanding for strategic business cooperation in rechargeable battery materials in the presence of POSCO Group Chairman Choi Jeong-woo and LG Energy Solution Vice Chairman Kwon Young-soo at Park One in Yeouido, Seoul on Oct. 7.
At the signing ceremony on this day, the two companies decided to carry out specific cooperation across the entire value chain of secondary batteries, including mid- and long-term supply and purchase of positive and negative electrode materials, lithium, recycling, and next-generation negative electrode materials.
LG Energy Solution shared its plans to purchase positive and negative electrode materials for the next 7 years, and POSCO Group shared its plans to supply secondary battery materials and accelerate expansion by region according to IRA, confirming the relationship between the two companies once again to establish a stable supply chain.
After the signing of the agreement, the two companies plan to sign a mid- to long-term contract for the supply/sale of positive and negative anode materials within this year, and plan to materialize business and technical cooperation through a working group for recycling and next-generation anode materials.
POSCO Group Chairman Choi said, “We will be able to further enhance the competitiveness of the global battery industry through business cooperation between the POSCO Group, which has strengths in the field of secondary battery materials, and LG Energy Solutions, a leader in the field of electric vehicle batteries.”
Meanwhile, POSCO Group has been supplying cathode materials to LG Chem since 2012, and has since supplied anode materials, continuing a close cooperative relationship between the two companies.