"Shaking the Secondary Battery Market"... POSCO Holdings and LG Energy Solution Join Forces

Discussion on Material Supply Measures According to Mid- to Long-Term Procurement Plans

POSCO Holdings and LG Energy Solution signed a business agreement on secondary battery operations between the two companies on the 7th at Park One in Yeouido, Seoul. From left to right: Lee Kyung-seop, Head of Secondary Battery Materials Business Promotion Group at POSCO Holdings; Choi Jeong-woo, Chairman of POSCO Group; Kwon Young-soo, Vice Chairman of LG Energy Solution; Kim Dong-soo, Head of Purchasing Center at LG Energy Solution.

[Asia Economy Reporter Oh Hyung-gil] POSCO Holdings and LG Energy Solution are strengthening their cooperation in the secondary battery business.

On the 7th, the two companies signed a "Memorandum of Understanding for Strategic Business Cooperation on Secondary Battery Materials" at Park One in Yeouido, Seoul, attended by Choi Jeong-woo, Chairman of POSCO Group, and Kwon Young-soo, Vice Chairman of LG Energy Solution.

With global supply chain issues emerging due to the United States-Mexico-Canada Agreement (USMCA) and the Inflation Reduction Act (IRA), POSCO Group, which handles the entire secondary battery materials business including lithium, cathode and anode materials, and recycling, and LG Energy Solution, a global battery leader, plan to further strengthen their cooperative relationship to enhance competitiveness.

The two companies agreed to carry out concrete cooperation across the entire value chain of secondary batteries, including mid- to long-term supply and purchase of cathode and anode materials, lithium, recycling, and next-generation anode materials.

LG Energy Solution shared its purchase plan for cathode and anode materials over the next seven years, while POSCO Group shared its plans for secondary battery material supply and regional expansion acceleration in accordance with the IRA, reaffirming their commitment to building a stable supply chain.

After signing the agreement, the two companies plan to conclude mid- to long-term contracts for the supply and sale of cathode and anode materials within this year, and to specify business and technical cooperation in recycling and next-generation anode materials through a working group of field experts.

Chairman Choi Jeong-woo said, "Through the business cooperation between POSCO Group, which has strengths in secondary battery materials, and LG Energy Solution, a leader in the electric vehicle battery field, we will be able to further enhance the competitiveness of the global battery industry," adding, "I hope we grow together as a 100-year company in the future."

Vice Chairman Kwon Young-soo said, "As we have closely cooperated so far, the solid cooperation between POSCO Group and LG Energy Solution will allow us to maintain competitiveness amid various issues including the US IRA," and added, "The two companies will work together to shake up the secondary battery market in ways no one has imagined, aiming to be the best in the world."