POSCO Future M Co. wins $1.3 bn contract as EV sales grow

A panoramic view of POSCO Future M’s cathode material plant in Gwangyang. (POSCO Future M)

South Korean chemical and battery material maker Posco Future M Co. announced Wednesday that it won contract to supply high-nickel materials for electric vehicles worth 1.8 trillion won ($1.3 billion). The latest deal is a significant accomplishment even as concerns grow about a slower growth in EV sales, according to the company.

The details in the contract remain confidential, and no further details, such as the contract party and duration, were provided.

Other POSCO subsidiaries are pursuing new investment opportunities in raw materials for secondary batteries, as they see the ongoing slower EV demand as an ideal moment for them to create a supply chain for raw materials.

Following the $40 million investment agreement signed between POSCO International Corp. and Australian mining firm Black Rock Mining Ltd. in March 2024, POSCO Holdings is also evaluating key mining investments, including in a lithium mine.