Following General Motors (GM), POSCO Chemical is pushing to supply a large amount of cathode materials to Ford.
The U.S. automaker wants to diversify its material supply chain ahead of the implementation of the Inflation Reduction Act (IRA), which provides subsidies only to electric vehicles that use batteries made with North American minerals and components.
POSCO Group Chairman Choi Jung-woo had a private meeting with Ford CEO Jim Parley at the POSCO Center in Seoul on Sept. 20. At Ford’s request, the meeting was held behind closed doors.
At the meeting, Parley requested POSCO Group's cooperation in cathode materials supply. This was the first time Ford officially requested POSCO Group to supply cathode materials. Parley also requested POSCO’s cooperation in supply of battery minerals such as lithium and nickel.
POSCO Group is mapping out a cathode material supply plan for Ford. POSCO Chemical, a subsidiary specializing in secondary battery materials, is expected to supply cathode materials to Blue Oval SK, a battery joint venture between Ford and SK On. This will mark the first time that POSCO Chemical officially supplies cathode materials to SK On.
POSCO Chemical is planning to sign a long-term supply contract for more than five years with Ford. Earlier, at the end of July, POSCO Chemical signed a contract with GM to supply cathode materials worth 13.76 trillion won. Considering that the contract with GM will run three years from next year to 2025, the deal with Ford is expected to reach tens of trillions of won.
