POSCO Future M LFP Cathode Supply Expands to Samsung SDI

POSCO Future M Secures Long-Term LFP Cathode Contract

POSCO Future M has signed a definitive contract to supply lithium iron phosphate (LFP) cathode materials to Samsung SDI. The agreement covers deliveries from 2027 through 2032 and carries an approximate value of KRW 6 trillion, equivalent to USD 4.5 billion. The POSCO Future M LFP cathode supply agreement establishes a long-term commercial relationship between the two South Korean companies and expands the scope of materials covered by their existing cooperation. The contract represents a significant commitment to LFP cathode materials over a six-year supply period.

LFP Supply Volume More Than Doubles

Under the definitive agreement, the companies more than doubled the LFP cathode material supply volume of 190,000 metric tons that they had agreed upon in August 2026. The increase expands the material volume covered by their LFP cooperation and forms a larger part of the newly established long-term supply arrangement. The revised commitment builds on the earlier agreement rather than replacing it with an unrelated supply relationship. The expanded volume also reflects a broader commitment to LFP cathode materials between POSCO Future M and Samsung SDI as the companies prepare for deliveries beginning in 2027.

Existing NCA Contract Adds LFP Materials

The companies have also amended their nickel-cobalt-aluminum (NCA) cathode material supply contract, which was originally signed in 2023. The amendment adds LFP cathode materials to the products covered by that agreement, expanding the material portfolio within their existing contractual relationship. This change means the cooperation between the two companies now encompasses both NCA and LFP cathode materials under the amended arrangement. The development broadens the scope of the original 2023 contract while maintaining continuity in their commercial relationship and adding another cathode chemistry to the products supplied between the companies.

Cooperation Could Expand to Additional Battery Materials

POSCO Future M and Samsung SDI also plan to further broaden their cooperation beyond LFP and NCA cathode materials. Their planned expansion includes lithium manganese oxide (LMO) cathode materials and synthetic graphite anode materials. If implemented, these additions would extend the companies' cooperation across further cathode and anode material categories. The stated plans therefore point toward a wider battery-material relationship, building on the newly expanded LFP supply arrangement and the existing NCA contract while adding potential future cooperation areas.

Industry Impact & Outlook

The agreement strengthens the long-term materials relationship between two major South Korean battery-industry participants and increases the volume and range of materials covered by their cooperation. The expanded LFP commitment, alongside NCA materials and potential future LMO cathode and synthetic graphite anode supplies, indicates a broader material strategy rather than reliance on a single chemistry. For South Korea, the agreement also highlights continued activity across the domestic battery-material supply chain. The next phase will center on deliveries beginning in 2027 and the potential expansion of cooperation into the additional material categories identified by the companies.

Frequently Asked Questions

What is the value and duration of the POSCO Future M and Samsung SDI LFP contract?
The agreement covers LFP cathode material deliveries from 2027 through 2032 and is valued at approximately KRW 6 trillion, or USD 4.5 billion. The companies also more than doubled the previously agreed LFP supply volume of 190,000 metric tons from August 2026. In addition, the existing 2023 NCA cathode material contract was amended to include LFP materials. The companies plan to potentially extend their cooperation to LMO cathode materials and synthetic graphite anode materials, broadening the scope of their battery-material relationship.