Samsung Securities Report
On the 5th, Samsung Securities evaluated that Posco Future M's stable capacity response capability has led to the announcement of long-term large-scale supply contracts with customers.
Jang Jeong-hoon, a researcher at Samsung Securities, stated, "Posco Future M has demonstrated the highest negotiation power among cathode materials by securing supply contracts worth 83 trillion won over six months."
Earlier, on the 2nd, Posco Future M announced during trading hours that it had signed a supply contract worth a total of 13.2 trillion won for high-nickel materials for electric vehicles with Ultium Cells for the next nine years from 2025 to 2033. This contract was made with Ultium Cells, a subsidiary of Ultium CAM LP in Canada, a joint venture with GM.
On the same day, its 100% subsidiary, Posco Chemical, announced that it will invest 1 trillion won in Canada by May 2027 to expand production capacity by 33,000 tons per year of cathode materials (NCMA) and 45,000 tons per year of precursors. This is the second phase of investment in Ultium CAM, a Canadian joint venture (JV), and combined with the first phase, it will secure an annual capacity of 60,000 tons.
Researcher Jang explained, "The 1 trillion won investment is the portion of Posco Future M's investment burden, and the total investment cost is expected to include GM as a joint partner, external loans, and Canadian government incentives, but the exact amount has not been disclosed."
Posco Future M started with a 10-year, 40 trillion won contract with Samsung SDI in January, followed by a 7-year, 30 trillion won contract with LG Energy Solution in March, and this time secured an 8-year, 13 trillion won contract.
Researcher Jang said, "It appears that the stable capacity response capability, built through the precursor and lithium and nickel supply chains via Posco Holdings, is leading to the announcement of long-term large-scale supply contracts with customers."
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