SK On Secures LFP Cathode Supply in $800 Million Deal With POSCO Future M

POSCO Future M has signed a supply agreement to provide SK On with LFP cathode material, a contract valued at roughly 1.1 trillion won — close to 800 million US dollars. The deal covers the years 2027 through 2029, with an option to extend by another two years if both sides agree. This marks the first time POSCO Future M will deliver cathode material to SK On, having previously supplied the battery maker only with anode material.

The agreement also broadens POSCO Future M’s customer base: the company says it now supplies cathode and anode materials to all three South Korean battery manufacturers. It follows a separate long-term contract announced in August for 190,000 tonnes of LFP cathode material with another Korean battery producer.

LFP cells trade some energy density compared with NCM and NCA chemistries, but they are seen as cheaper and longer-lasting — advantages that are driving interest from stationary energy storage projects and more affordable electric vehicles. POSCO Future M is widening its portfolio beyond its traditional focus on NCM and NCA materials in response. Some high-nickel cathode production lines at its Pohang plant have already been converted to LFP, with volume deliveries scheduled to start at the end of 2026. Additional lines will be added depending on further orders.

The company also plans to draw on lithium from salt lakes in Argentina going forward, a move it expects to improve both costs and product quality.