POSCO Chemical Signs Supply Agreement for Cathode and Anode Materials with European Morrow Battery

POSCO Chemical Teams Up with Norwegian Battery Company Morrow to Target European Electric Vehicle Market

[Asia Economy Reporter Hwang Yoon-joo] POSCO Chemical is teaming up with Norwegian Morrow Battery (Morrow), which is building a large-scale battery factory, to target the European electric vehicle market.

POSCO Chemical announced on the 25th that it has signed a business agreement with Morrow for the development and supply of battery materials. POSCO Chemical will develop and supply anode and cathode materials for batteries that Morrow plans to mass-produce starting in 2024.

Morrow is constructing a large battery factory in the Arendal region of Norway with an annual production capacity of 42GWh, enough to supply approximately 700,000 high-performance electric vehicles. The factory will produce batteries for electric vehicles and ESS using 100% eco-friendly hydropower energy. Major investors include Agder Energy Venture, a subsidiary of Statkraft, Norway's largest power company, and Denmark’s pension fund PKA.

Since early this year, POSCO Chemical has been closely cooperating with Morrow by supplying product samples. Based on this business agreement, they plan to accelerate joint product development (EVI) to prepare for Morrow’s battery cell mass production using POSCO Chemical’s materials.

Morrow has been able to significantly improve battery quality by applying POSCO Chemical’s anode and cathode material technologies, which are used in many electric vehicles, to its own products. Additionally, by partnering with POSCO Chemical, which has stable mass production capabilities and secured raw materials such as lithium, nickel, and graphite, Morrow expects to further enhance its business competitiveness.

According to market research firm IHS Markit, the European electric vehicle battery market is expected to grow more than fivefold from 82GWh this year to 410GWh by 2026. Moreover, Norway is one of the countries with the highest electric vehicle adoption rates worldwide, with electric vehicles accounting for 54% of sales in 2020.

Furthermore, POSCO Chemical is collaborating with numerous local battery companies in Europe, the United States, and China to jointly develop and supply anode and cathode materials optimized for each company’s batteries.

To this end, in August, POSCO Chemical decided to invest in a cathode material and precursor production plant through a joint venture with China’s Huayou Cobalt, and is also promoting the establishment of cathode material business corporations in Europe and the United States. In July of this year, POSCO Chemical formed a task force to establish corporations in Europe and the United States and deployed personnel locally, actively working on building production bases and securing orders.

Jung Dae-heon, head of POSCO Chemical’s Energy Materials Division, said, “By combining Morrow’s innovative battery manufacturing technology with POSCO Chemical’s leading material technology, we will lead the European electric vehicle market. Based on close cooperation, we will provide customers with the best technological solutions.”