POSCO Group has signed a long-term lithium supply contract with SK On, accelerating efforts to expand into the European and North American electric vehicle (EV) battery markets.
On February 24, the two companies agreed on a contract to supply up to 25,000 tons of lithium from this year through 2028. The volume is sufficient to produce batteries for approximately 400,000 EVs and will be used in SK On’s battery projects in Europe and North America.
POSCO Group plans to begin full-scale supply in the second half of this year after completing the “4M (Man, Machine, Material, Method) certification” required by global battery manufacturers. The lithium will be produced at the Hombre Muerto salt lake operated by POSCO Argentina in Argentina. The 4M certification is a comprehensive quality verification system covering personnel, equipment, raw materials and production processes, formally recognizing material stability and production capability.
The contract marks the largest supply agreement signed by POSCO Group since it established commercial lithium production in Argentina in 2024. Industry observers view the deal as significant not only for securing stable long-term demand in quality-sensitive European and North American markets, but also for demonstrating POSCO’s advanced lithium production capabilities.
For SK On, the agreement strengthens supply stability for a key battery raw material at a time of intensifying global competition in the secondary battery supply chain.
The two companies also discussed cooperation in the rapidly growing energy storage system (ESS) market. They reviewed potential use of Argentine salt lake lithium in ESS batteries and explored collaboration in battery recycling through POSCO HY Clean Metal, POSCO Group’s secondary battery recycling subsidiary.
POSCO Group has been actively diversifying customers and identifying new demand to reinforce competitiveness in its secondary battery materials business. In November last year, the group acquired a stake in an Australian lithium mine operated by Mineral Resources and decided to acquire an Argentine salt lake asset from Canada-based Lithium South, strengthening its lithium resource base.
In his New Year’s address, POSCO Group Chairman Jang In-hwa emphasized leveraging the group’s self-established lithium supply chain to diversify product portfolios and respond swiftly to market changes to capture future growth opportunities.
