POSCO, SK On forge strategic tie-up in rechargeable battery business

POSCO Holdings Inc., the investment holding company of South Korea’s largest steelmaker, and SK On Co., the battery unit of SK Innovation Co., have formed a strategic tie-up to jointly promote growth in the rechargeable battery business.

The two companies signed a memorandum of understanding on Wednesday to cooperate in battery-related projects throughout the battery value chain from securing raw materials such as lithium, nickel and cobalt as well as cathode and anode materials to battery recycling.

At Wednesday’s meeting, the two companies also shared SK’s mid- to long-term battery business strategy and POSCO’s battery materials procurement plans.

The partners said they will launch a task force to identify joint local and overseas projects, including investments in raw material procurement and the establishment of a network to collect used batteries.

The extensive partnership comes as the two companies are counting on the battery business for future growth amid an industry shift toward more eco-friendly practices, including increasing adoption of electric vehicles.

Last year, SK On, the world’s fifth-largest EV battery maker, signed an agreement with Solid Power, a US battery startup, to develop an all-solid-state battery.

SK is also set to expand its production capacity with US partners, including Ford Motor Co.

Meanwhile, POSCO Holdings broke ground for a lithium plant in Argentina last March.

In May, the company made an equity investment in ProLogium Technology Co., a Taiwanese all-solid-state battery company.

Write to Ik-Hwan Kim at lovepen@hankyung.com
In-Soo Nam edited this article.