Posco, Honda Motor agree to joint electric vehicle, battery business

Posco and Honda Motor agreed to a joint electric vehicle (EV) and battery business, said the local steelmaker Wednesday, amid accelerating electrification of the automotive industry.

Posco Holdings CEO Choi Jeong-woo, left, and Honda Motor CEO Toshihiro Mibe pose for a photo during a signing ceremony held in Gangnam District, southern Seoul, Tuesday. [POSCO HOLDINGS]

Posco and Honda Motor agreed to a joint electric vehicle (EV) and battery business, said the local steelmaker Wednesday, amid accelerating electrification of the automotive industry.

The Japanese carmaker on Tuesday signed a memorandum of understanding (MOU) with Posco Holdings, which owns the Pohang, North Gyeongsang-based steelmaker Posco, for a comprehensive collaboration in the EV battery business.

Posco Holdings CEO Choi Jeong-woo and Honda Motor CEO Toshihiro Mibe attended the signing ceremony held at Posco’s office building in Gangnam District, southern Seoul.

The two companies plan to further strengthen existing ties in the automotive steel sheet business, and enter into joint projects in the EV battery materials and battery recycling.

Posco and Honda will consider forming a battery material supply agreement, and carry out joint technology development for solid-state battery materials.

The companies also plan to discuss expanding supply of Posco’s automotive parts, such as steel sheets and traction motor cores, for Honda’s electric cars.

The companies will establish a working group dedicated to each business sector for a mid- to long-term collaboration in battery materials and steel businesses overseas.

“As Honda and Posco Group expanded existing ties in the steel industry into EV battery materials, this would be an opportunity to mutually benefit from Posco’s strategy to establish the full value chain in battery materials and Honda’s EV expansion initiative,” said Choi of Posco Holdings.

Honda hopes to achieve carbon neutrality in all of its products by 2050. The carmaker is currently working with LG Energy Solution to build a joint battery plant in Jeffersonville, northwestern Ohio, by the end of 2024.

Posco companies, including Posco Future M, aim to reach combined annual revenue of 41 trillion won ($31 billion) in battery material businesses by 2030.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]