As electric vehicle demand slows, the contract between POSCO FUTURE M and U.S. General Motors (GM) ended without fulfilling the originally agreed supply volume.
On the 31st, POSCO FUTURE M said in a filing that it signed a contract worth 13.7696 trillion won with GM in 2022, but the amount supplied through today totaled just 2.8111 trillion won. The contract start date was Jan. 1, 2023, and the end date is Dec. 31, 2025.
The counterparty to the contract with POSCO FUTURE M was GM, and the cathode materials supplied by POSCO FUTURE M went to Ultium Cells, the U.S. joint venture of LG Energy Solution and GM.
POSCO FUTURE M said, "Due to factors such as a sharp drop in lithium prices, a key materials and supplies item, and a slowdown in the U.S. electric vehicle market's growth, the supply amount fell short of the original contract amount." Lithium prices have plunged about 90% over the past three to four years. However, as the contract ends today, there is expected to be no impact on future earnings.