POSCO Chemical, Britishvolt sign initial deal for battery materials

POSCO Chemical Co., a unit of South Korea’s top steel maker, and UK electric vehicle startup Britishvolt Ltd. have signed an initial agreement on the development and supply of battery components in Europe.

Under a memorandum of understanding signed on Thursday, POSCO Chemical will be supplying EV battery materials to Britishvolt, which is building a battery plant in northeast England.

The two companies will also work toward establishing a stable supply chain, including securing raw materials for battery components and ensuring local production in Europe.

Britishvolt plans to have an annual production capacity of 100 gigawatt hours from its facilities under construction in Northumberland, England and the Canadian city of Quebec. The company counts British carmakers such as Aston Martin and Lotus as its clients.

PARTNERSHIPS WITH CARMAKERS, BATTERY PLAYERS

POSCO Chemical, a subsidiary of POSCO Holdings, has been forging partnerships with automakers and battery suppliers to advance into the fast-growing battery materials market.

Last month, POSCO Chemical and General Motors Co. agreed to launch a joint venture that will supply about 20 trillion won ($16 billion) worth of cathode materials for GM cars over eight years.

The JV, to be established in Quebec by the end of September of this year, will be supplying battery materials to US-based Ultium Cells, a company formed between GM and LG Energy Solution Ltd. from 2025 through 2033.

In October of last year, POSCO Chemical signed an MOU with Norway’s Morrow Batteries Co. to jointly develop battery materials.

POSCO Group plans to invest 25 trillion won to secure a stable supply of key raw materials used in EV batteries amid a growing trend of resource nationalism worldwide, Lee Kyung-sub, senior vice president in charge of POSCO Holdings’ secondary battery business, said in a recent interview with The Korea Economic Daily.

Write to Jeong-Min Nam at peux@hankyung.com
In-Soo Nam edited this article.