POSCO, Honda to cooperate in EV material business

2023. 4. 12. 14:03
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POSCO Holdings Inc. Chairman Choi Jeong-woo shakes hands with Honda Chief Executive Officer Toshihiro Mibe after signing a MOU at POSCO center in Seoul on April 11. [Photo provided by POSCO Holdings]
South Korea’s POSCO Group and Japanese automaker Honda Motor Co. have agreed to cooperate on the supply and recycling of electric vehicle battery materials.

POSCO Holdings Inc. Chairman Choi Jeong-woo and Honda Chief Executive Officer Toshihiro Mibe signed a memorandum of understanding on Tuesday at POSCO Center in Seoul, according to the company and Kyodo News on Wednesday.

Under the MOU, the two agreed to discuss and explore technical exchanges on key battery materials, such as cathode and anode materials, materials for all-solid-state batteries and recycling in the battery materials sector.

Regarding materials for all-solid-state batteries, the two will promote joint technology development through regular exchanges in the business and technology fields.

In the field of recycling, the two agreed to work on ways to link Honda’s electric vehicle business with POSCO Group’s global recycling business.

In the steel sector, the two will discuss expanding the application of eco-friendly steel plates for carbon neutrality, drive motor cores for electric vehicles and non-oriented electrical steel plates for motors, in addition to the existing supply of automotive steel plates.

“Honda and POSCO Group will expand the existing partnership in steel into the field of battery materials, creating a mutually beneficial win-win outcome for POSCO Group’s battery materials strategy and Honda’s electric vehicle expansion strategy,” said POSCO Holdings, Chairman Choi Jeong-woo.

Expanding the partnership with POSCO, which has extensive knowledge in battery materials and recycling, will further accelerate Honda’s electrification strategy, said Honda’s Mibe.

POSCO Group and Honda will establish a working group for each field to explore mid- to long-term cooperation and regular exchanges to expand the steel and battery materials business overseas.

By 2030, POSCO Group aims to establish a production and sales system covering 610,000 tons of anode materials, 320,000 tons of cathode materials, 300,000 tons of lithium and 220,000 tons of nickel, and achieve 41 trillion won ($31 billion) in sales from the battery materials business alone.

Honda plans to invest a total of $40 billion by 2030 to strengthen its competitiveness in EV models.

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