POSCO Group said on the 25th that it signed a lithium supply deal with SK On for up to 25,000 tons through 2028 starting this year. The volume is enough for 400,000 electric vehicles and will be used for SK On's electric-vehicle battery projects in Europe and North America.

Lee Jaeyoung, head of Energy Materials Business at POSCO Holdings (right), and Park Jongjin, head of Strategic Procurement at SK On, pose for a commemorative photo after signing a long-term lithium purchase contract on the morning of the 24th at SK On Green Campus in Jongno-gu, Seoul. /Courtesy of POSCO Group

Under the agreement, POSCO Group plans to begin supplies in the second half of this year after completing the "4M certification (Man·Machine·Material·Method)" battery-material quality certification process for lithium produced at POSCO Argentina's Hombre Muerto salt lake.

The 4M certification verifies personnel, equipment, materials and work methods required by leading global battery makers. It aims to secure quality uniformity throughout the entire production process and assess stable mass-production capability; passing it affirms material stability and production capacity.

POSCO Group said this deal is the largest supply contract since it established a commercial lithium production system in Argentina in 2004. It also said that by entering the European and North American markets—key growth arenas for electric vehicles with stringent quality standards—it has proven its technology for producing high-grade lithium.

POSCO Group and SK On also discussed joint-response strategies, including ways to use lithium produced from the Argentina salt lake in the growing energy storage system (ESS) market. They also reviewed waste-battery recycling plans at POSCO HY Clean Metal, POSCO Group's secondary-battery recycling subsidiary.

POSCO Group is focusing on diversifying its customer base and uncovering new demand to strengthen market competitiveness in the secondary-battery materials business. After acquiring equity in Australia's Mineral Resources lithium mine in Nov. last year, it secured quality lithium assets by deciding to acquire Argentina salt lakes from Canada's LIS.

POSCO Group Chairman Chang In-hwa, in this year's New Year's address, emphasized, "Let's seize future growth opportunities with a strategy that diversifies our product lineup and responds swiftly to market trends based on the group's self-built lithium supply chain."

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