POSCO Chemical [003670:KS] is aiming to reach a megadeal to supply cathode, a core material for electric vehicle (EV) batteries, to Ford Motor [F:US], as reported by the Korea Economic Daily on October 18. During a private meeting between Ford Motor Chief Executive Jim Parley and POSCO Chemical, Ford expressed interest in developing a partnership with POSCO Group [005490:KS] affiliates, including POSCO Chemical, to buy battery minerals such as lithium and nickel, according to people close to the matter. POSCO Chemical seeks to secure a five-year cathode supply agreement with Ford.

POSCO Chemical had revenues of KRW803.2bn (USD560m) and an operating profit of KRW55.2bn (USD38.47m) in the second quarter of 2022. Sales climbed by 20.9% and operating profit increased by 116.2% compared to the previous quarter, owing mostly to an increase in battery material production and higher unit pricing. Also, cathode materials sales totaled KRW348.6bn (USD0.24bn) in the quarter. Before the potential arrangement with Ford, POSCO Chemical signed an agreement with General Motors (GM) [GM:US] on July 28 to supply the latter with cathode materials worth around KRW13.77tr (USD9.597bn). Before that, on May 27, POSCO Chemicals formed Ultium CAM, a joint venture with GM in Quebec, Canada, and inked a deal to supply 30,000 tons of cathode materials to Ultium Cells for eight years beginning in 2025. Ultium Cells is an EV battery firm founded in 2019 by General Motors and LG Energy Solution [373220:KS].

Sources:

https://www.kedglobal.com/batteries/newsView/ked202210180012

https://libattery.ofweek.com/2022-08/ART-36008-8120-30570849.html

https://www.kedglobal.com/cn/%E6%B5%A6%E9%A1%B9%E5%8C%96%E5%AD%A6/newsView/ked202204080008

https://libattery.ofweek.com/2022-08/ART-36008-8120-30570849.html

https://www.kedglobal.com/cn/%E6%B5%A6%E9%A1%B9%E5%8C%96%E5%AD%A6/newsView/ked202205270024