November 30, 2024

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A photo of Posco Gwangyang steel plant in South Jeolla Province. (Posco chemical)

Posco Chemical, the chemical materials unit of South Korean steel giant Posco, signed a deal to supply General Motors with 13 trillion won ($10 billion) worth of cathode materials on Thursday.

Cathode materials determine the capacity and average voltage of batteries.

With the deal, Posco will now supply high-nickel cathode materials -- largely used as electric vehicle batteries -- for Ultium Cells, a joint venture of LG Energy Solution and GM, for three years.

Posco Chemical also plans to build production lines in North America to meet the demands for GM’s expanding electric car business.

GM and Posco Chemical plan to cooperate further to establish a global EV battery supply chain by establishing a precursor factory that will produce raw materials for cathodes, according to Posco Chemical. The two firms will also sign additional supply deals for cathode and anode materials, Posco Chemical added.

By Lee Yoon-seo (yoonseo.3348@heraldcorp.com)