Signing Memorandum of understanding …agreed to cooperate in all sectors, including raw materials such as lithium, cathode and anode materials, and recycling.
Discussion of POSCO Group's supply expansion of materials in accordance with SK On's global production expansion plan
POSCO Holdings and SK On join hands to cooperate regarding the secondary battery business.
While supply chain problems are emerging as pending issues, POSCO Group, which handles the overall secondary battery material business such as lithium/nickel, cathode and anode materials, and recycling, and SK On, which is rapidly increasing its global battery market share, are establishing a joint response system.
The two companies signed a MOU for comprehensive business cooperation in the secondary battery business' at the POSCO Center in Daechi-dong, Seoul on June 15, attended by Byeong-og Yoo, Head of the Green Materials & Energy Business Team (Senior Executive Vice President) of POSCO Holdings and Dong-seop Jee, CEO of SK On.
The two companies agreed to strengthen collaboration across the entire battery value chain, ranging from secondary battery materials such as lithium, nickel, and cobalt to positive and negative electrode materials and battery recycling.
The two companies also shared the medium-to-long-term expansion plans for SK On's secondary battery production, and discussed how POSCO Group will increase the supply of raw materials to its partner.
After organizing a working-level taskforce, the two companies plan to talk about the △ mid-to-long-term strategies for overseas business expansion △ investments in raw materials such as lithium and nickel △ a roadmap for the development of cathode materials △ expansion of anode material supply △ establishment of networks to collect used batteries.
Byeong-og Yoo, Head of the Green Materials & Energy Business Team of POSCO Holdings said, "The business cooperation between POSCO Group, which has the advantage of having the secondary battery material business, and SK On, which is increasing its market share in the EV battery sector, is expected to improve the competitiveness of Korea's battery industry."
Dong-seop Jee, CEO of SK On said, "If POSCO Group's capability and infrastructure create a synergy effect with SK On's technologies, the Korean battery industry will enhance its competitiveness further. We will contribute to improving the status of Korea in the global EV market through active cooperation."
Meanwhile, POSCO Holdings broke ground for the production plant for lithium, the raw material for the secondary battery, in Argentina in March. In May, it invested in ProLogium Technology, a Taiwanese company specializing in all-solid-state batteries. POSCO has continuously enhanced its capabilities in the rechargeable cell business as it established the solid electrolyte production company POSCO JK Solid Solution early this year.
SK On elevated its global market share ranking from 10th place in 2019 to 5th based on its its exceptional technological prowess and manufacturing capabilities such as successive development and mass production of the world's first high-performance high-nickel battery. In 2021, SK On is leading the future battery market after securing shares of Solid Power, the leading US company for all-solid-state batteries, and having decided to produce the next-generation batteries through joint development last year.