South Korean battery materials producer Posco Future M has signed a memorandum of understanding (MOU) with a leading Chinese company to collaborate on a major battery materials project, as global demand for electric vehicles (EVs) continues to accelerate.
The agreement, announced on Monday, will see Posco Future M work with China’s CNGR Advanced Material Co. on the joint development and supply of key materials used in EV batteries, including high-nickel cathodes and precursors. The partnership aims to strengthen both companies’ positions in the fast-growing global battery supply chain.
Under the MOU, the two firms will explore opportunities for building new production facilities and jointly developing advanced technologies to improve battery performance and reduce costs. While specific investment figures and locations have not yet been disclosed, industry insiders say potential sites include South Korea, China, and other strategic markets in Southeast Asia.
Posco Future M, a subsidiary of steel giant Posco Holdings, has been expanding aggressively into the battery sector, with recent deals to secure raw materials and scale up production capacity. The tie-up with CNGR, one of China’s largest battery precursor manufacturers, is expected to give the company greater access to the Chinese market and bolster supply stability.
A Posco Future M spokesperson said: “This partnership combines the strengths of two industry leaders. By working together, we can develop cutting-edge battery materials and secure a competitive edge in the rapidly evolving EV market.”
CNGR, which supplies materials to major battery makers such as CATL and LG Energy Solution, said the collaboration would help meet surging demand from automakers worldwide, particularly as EV adoption accelerates in Europe, North America, and Asia.
Market analysts view the deal as part of a wider trend of cross-border alliances in the EV sector, as companies seek to secure resources, share expertise, and reduce exposure to geopolitical supply chain risks.
The MOU is expected to lead to a formal joint venture agreement later this year, paving the way for commercial production within the next two to three years.