POSCO Future M Co., Ltd. and Honda Motor Co., Ltd. have announced a basic agreement to collaborate on producing cathode materials for automotive batteries in Canada. The two companies plan to initiate detailed discussions aiming to sign a joint venture agreement by the end of 2024.

The partnership discussions, which began in April 2023, focus on achieving carbon neutrality. Both companies have been exploring the potential for cooperation in procuring essential battery materials, leading to this basic agreement.

Cathode materials are crucial for batteries, which are the central components of electric vehicles. Securing a stable supply of high-quality cathode materials will enhance the business structures of both companies. The primary goal of this agreement is to ensure the steady procurement of high-performance batteries to support the electrification strategies of both companies in the North American market, where significant mid- to long-term growth is anticipated. The joint venture will supply cathode materials for EV batteries, primarily for Honda’s North American EV production.

By sharing their respective strengths—such as high value-added material technologies from POSCO Future M and advanced electrification technologies from Honda—the companies aim to produce superior cathode materials for EV batteries. This collaboration is expected to result in high-performance EVs, accelerating both companies’ efforts toward carbon neutrality.

For more information visit www.posco.com

14 May 2024