POSCO Future M will supply lithium iron phosphate (LFP) cathode materials to SK On under a 1.074 trillion won ($770 million) contract running from 2027 through 2029. The agreement can be extended through 2031 if both companies agree. The deal expands a partnership in which POSCO Future M previously supplied anode materials to SK On, and gives the materials producer cathode-and-anode supply relationships with all three of South Korea’s battery makers: LG Energy Solution, Samsung SDI and SK On. LFP batteries generally provide lower output than nickel-cobalt-manganese (NCM) or nickel-cobalt-aluminum (NCA) ternary batteries, but offer lower costs and longer operating lives. Demand is increasing in energy storage systems as artificial-intelligence data-center construction drives power consumption, while electric-vehicle adoption is also expanding. POSCO Future M has converted part of a high-nickel cathode line at its Pohang plant to LFP production and plans to start mass-production supply late this year. It plans further conversions as additional orders arrive and intends to use lithium from salt lakes in Argentina through POSCO Group supply-chain cooperation to improve LFP cost competitiveness and quality. The company is also expanding its anode business, including a 1 trillion won synthetic-graphite contract with a global automaker signed in March and a planned 357 billion won plant in Vietnam. A Saemangeum, Jeonbuk State, facility processing spheroidized graphite for natural-graphite anodes is scheduled for trial operations early next year and mass production in the second half. POSCO Group’s July growth strategy calls for a Triple-core structure covering industrial resources, strategic resources and energy resources to become a leading national supplier of critical resources.