Posco Future M, Samsung SDI sign 6 trillion won LFP cathode supply deal
In short
Posco Future M said on Oct 6 that it signed a long-term battery materials supply contract with Samsung SDI that includes lithium-iron-phosphate (LFP) cathode materials, reported at 6 trillion won. The contracted volume is more than double the 190,000 tonnes agreed in August for 2027-2032, and cooperation expands from NCA cathode materials to LFP, with LMO cathodes and artificial graphite anodes to follow. Posco Future M said its expected supply volume to Samsung SDI rises by about 45 percent.
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Posco Future M said on Oct 6 that it signed a long-term battery materials supply contract with Samsung SDI covering lithium-iron-phosphate (LFP) cathode materials, a deal the Korean outlets reported at 6 trillion won. The company said the agreement bundles its main individual product contracts with Samsung SDI into a single supply framework. [ 1 , 2 , 3 , 4 , 6 , 7 , 8 , 10 , 11 , 12 , 13 , 14 , 15 ]
The contracted volume is more than double the 190,000 tonnes the two companies agreed in August for 2027 to 2032. Bloter reported the supply window as 2027 to 2032; Kyunghyang Shinmun reported at least 380,000 tonnes over six years from next year, while other outlets gave no final tonnage. Chosun Ilbo reported the company had described a 3 trillion won LFP cathode plan in August, with the volume roughly doubling in the formal agreement. [ 2 , 3 , 6 , 7 , 8 , 10 , 11 , 12 , 14 , 15 ]
The two companies revised a supply contract signed in 2023, expanding from NCA cathode materials alone to include LFP, and said they would widen cooperation to LMO cathode materials and artificial graphite anodes. Posco Future M said the broader product range lifts its expected supply volume to Samsung SDI by about 45 percent. Seoul Economic Daily, Bloter, CBS NoCut News and Kyunghyang Shinmun described the deal as a comprehensive agreement bundling their main individual product contracts. [ 2 , 3 , 6 , 7 , 8 , 10 , 11 , 12 , 13 , 14 , 15 ]
According to the outlets, Samsung SDI gains cathode and anode materials classed as Non-PFE — outside US rules on foreign entities of concern — strengthening its supply chain as US sourcing restrictions tighten. Dong-A Ilbo said Non-PFE materials come from supply chains unconnected to entities the US designates as foreign entities of concern, which makes it easier to meet requirements for battery production, sales and tax benefits in the United States. Posco Future M said confirmed volumes let it improve plant utilisation and plan expansion and procurement more precisely. [ 2 , 3 , 6 , 10 , 11 , 14 ]
Hankook Ilbo and Kyunghyang Shinmun reported the signing took place at Samsung SDI’s Dongtan business site in Hwaseong, Gyeonggi Province, between Posco Future M energy materials marketing head Yoon Tae-il and Samsung SDI purchasing centre head Lee Kwang-soo. [ 8 , 11 ]
ZDNet Korea reported that with NCA volumes falling and lithium prices down to a quarter of previous levels, the contract value is smaller than an earlier 40 trillion won agreement, a comparison no other outlet made. It reported Posco Future M signed an LFP cathode supply contract with SK On last month worth 1.1 trillion won for three years from next year to 2029, and that LFP cathode mass production will begin at the end of this year. Chosun Ilbo also noted the Samsung SDI deal is Posco Future M’s second large LFP cathode contract, after the SK On agreement. [ 10 , 15 ]
Chosun Ilbo attributed the volume increase to faster growth in expected supply of Samsung SDI energy-storage LFP batteries, driven by AI data centre expansion in North America; no other outlet gave that explanation. Yonhap, Seoul Economic Daily, Bloter and Kyunghyang Shinmun reported Posco Future M is the only domestic company able to supply ternary (NCA, NCM), LFP and LMO cathodes along with natural and artificial graphite anodes. A company official said it would keep strengthening the business on the group’s value chain, including lithium salt lakes and graphite mines. [ 2 , 4 , 6 , 11 , 15 ]
Why it matters
The deal ties a major Korean cathode maker to a major Korean cell maker in a longer domestic supply chain, which the outlets say helps Samsung SDI meet US sourcing rules that exclude Chinese-linked suppliers. For Posco Future M, confirmed long-term volumes support plant utilisation and investment planning in a sector with volatile demand forecasts. Both companies frame the agreement as strengthening the Korean battery value chain in electric vehicles and energy storage.
Key facts
- Posco Future M said it signed a long-term battery materials supply contract with Samsung SDI including LFP cathode materials, reported at 6 trillion won. [ 1 , 2 , 3 , 4 , 6 , 7 , 8 , 10 , 11 , 12 , 13 , 14 , 15 ]
- The contracted volume is more than double the 190,000 tonnes the two sides agreed in August for 2027 to 2032. [ 2 , 3 , 6 , 7 , 8 , 10 , 11 , 12 , 14 , 15 ]
- The two companies revised their 2023 supply contract, expanding from NCA cathode materials alone to include LFP, and plan to add LMO cathode materials and artificial graphite anodes. [ 2 , 3 , 6 , 7 , 8 , 10 , 11 , 12 , 13 , 14 , 15 ]
- Posco Future M said its expected supply volume to Samsung SDI increases by about 45 percent. [ 2 , 3 , 6 , 7 , 8 , 10 , 11 ]
- According to the outlets, the deal gives Samsung SDI Non-PFE cathode and anode materials that can respond to US rules on foreign entities of concern. [ 2 , 3 , 6 , 10 , 11 , 14 ]
- The signing took place at Samsung SDI’s Dongtan business site in Hwaseong, Gyeonggi Province, between Posco Future M energy materials marketing head Yoon Tae-il and Samsung SDI purchasing centre head Lee Kwang-soo. [ 8 , 11 ]
- ZDNet Korea reported the contract value is smaller than an earlier 40 trillion won agreement, as NCA volumes fell and lithium prices dropped to a quarter of previous levels. [ 10 ]
- Chosun Ilbo reported the volume roughly doubled from a 3 trillion won LFP cathode plan announced in August, which it attributed to faster growth in Samsung SDI’s expected energy-storage battery supply driven by AI data centre expansion in North America. [ 15 ]
Confirmed by several sources
- Posco Future M said it signed a long-term battery materials supply contract with Samsung SDI that includes LFP cathode materials, with the value reported at 6 trillion won. [ 1 , 2 , 3 , 4 , 6 , 7 , 8 , 10 , 11 , 12 , 13 , 14 , 15 ]
- The contracted volume is more than double the 190,000 tonnes agreed in August for 2027-2032. [ 2 , 3 , 6 , 7 , 8 , 10 , 11 , 12 , 14 , 15 ]
- The two companies revised their 2023 supply contract, expanding beyond NCA cathode materials to LFP, with LMO cathode materials and artificial graphite anodes to be added later. [ 2 , 3 , 6 , 7 , 8 , 10 , 11 , 12 , 13 , 14 , 15 ]
- Posco Future M’s expected supply volume to Samsung SDI rises by about 45 percent. [ 2 , 3 , 6 , 7 , 8 , 10 , 11 ]
- Samsung SDI secures Non-PFE cathode and anode materials through the deal, which the outlets say helps it respond to US regulations. [ 2 , 3 , 6 , 10 , 11 , 14 ]
- Posco Future M said confirmed long-term volumes let it improve utilisation and plan expansion and raw material procurement more precisely. [ 2 , 3 , 6 , 7 , 8 , 10 , 11 ]
- The contract is described as the two companies’ first comprehensive supply agreement bundling their main individual product contracts. [ 2 , 6 , 7 , 8 , 11 , 13 ]
- The signing took place at Samsung SDI’s Dongtan business site in Hwaseong, Gyeonggi Province, between Yoon Tae-il of Posco Future M and Lee Kwang-soo of Samsung SDI. [ 8 , 11 ]
Still unclear
- The total contracted volume: Kyunghyang Shinmun reported at least 380,000 tonnes over six years from next year, while other outlets say only that the volume is more than double the 190,000 tonnes agreed in August. Only one outlet gives a total tonnage figure; the others state the increase relative to the August agreement without a final number.
- Asia Economy’s summary refers to an August agreement on “19t” of LFP cathode materials. This conflicts with the 190,000 tonnes figure reported by other outlets and appears to be a typographical error in the summary.
- ZDNet Korea reported the contract value is smaller than an earlier 40 trillion won agreement because NCA volumes fell and lithium prices dropped to a quarter of previous levels. No other document mentions the earlier 40 trillion won agreement or that comparison.
- ZDNet Korea reported a prior LFP cathode supply contract with SK On worth 1.1 trillion won for three years from next year to 2029, and that LFP cathode mass production will begin at the end of this year. Chosun Ilbo also mentions a prior SK On LFP contract last month, but the value, period and production timing come from ZDNet Korea alone.
- Why the volume doubled: Chosun Ilbo attributed it to faster growth in Samsung SDI’s expected energy-storage battery supply as AI data centres expand in North America. Chosun Ilbo explains the volume increase this way, but no other outlet gives a reason for the larger contract.
- Seoul Economic Daily lists “LMP” among the cathode types Posco Future M can supply, while other outlets refer to LMO. This is a discrepancy in product names between documents.
- Newsis published a report headlined on a strengthened battery alliance, but the article text visible to us covers an unrelated topic. The document body does not describe the contract, so only its headline can be used for this event.
- Korea Economic Daily ran a headline on the 6 trillion won cathode supply, but its visible article text covers unrelated stories. The document body does not describe the contract, so only its headline can be used for this event.
What local media are saying
Timeline, local time
- Kukmin Ilbo publishes an early report that Posco Future M signed a 6 trillion won LFP cathode supply contract with Samsung SDI. [ 1 ]
- Seoul Economic Daily reports the contract, describing it as the two companies’ first comprehensive integrated supply agreement. [ 2 ]
- Yonhap reports that Posco Future M will supply LFP cathode materials to Samsung SDI under a 6 trillion won long-term contract. [ 3 ]
- Chosun Ilbo reports the deal and notes it is Posco Future M’s second large LFP cathode contract after one with SK On. [ 4 ]
- Newsis publishes a report on the contract under the headline referring to a strengthened battery alliance. [ 5 ]
- Bloter reports the supply runs from 2027 to 2032 and that the contract volume was doubled from the August agreement; CBS NoCut News and Hankook Ilbo also publish reports. [ 6 , 7 , 8 ]
- Korea Economic Daily publishes a report headlined on the 6 trillion won cathode supply to Samsung SDI. [ 9 ]
- ZDNet Korea reports the contract value is below an earlier 40 trillion won agreement and details the prior SK On deal and LFP production timing. [ 10 ]
- Kyunghyang Shinmun reports the deal is for six years from next year and at least 380,000 tonnes in total. [ 11 ]
- Asia Economy reports the long-term LFP cathode supply deal. [ 12 ]
- Maeil Business reports the contract with promotional consumer framing stressing stable supply and lower reliance on Chinese supply chains. [ 13 ]
- Dong-A Ilbo reports the deal and explains the Non-PFE supply chain and US regulatory context. [ 14 ]
- Chosun Ilbo reports the six-year, 6 trillion won contract and attributes the volume increase to AI data centre-driven energy storage demand. [ 15 ]