POSCO Future M and Honda Reach Basic Agreement on Collaboration for Production of Cathode Materials for Automotive Batteries in Canada

SEOUL, South Korea/TOKYO, Japan, Apr 29, 2024 - (JCN Newswire) - POSCO Future M Co., Ltd. and Honda Motor Co., Ltd. today announced that they have reached a basic agreement on collaboration for the production of cathode materials for automotive batteries in Canada. The two companies will begin detailed discussions with the goal of signing a joint venture agreement before the end of 2024.

Based on discussion of a comprehensive partnership toward the realization of carbon neutrality which began in April 2023, the two companies had been considering the possibility of cooperating in the procurement of key battery materials, which resulted in this basic agreement.

Cathode materials are one of the key materials for batteries, which are the key component of electric vehicles (EVs), and the stable procurement of high-quality cathode materials will strengthen the business structure for both companies. The purpose of this basic agreement is to steadily execute respective electrification strategies by ensuring steady procurement of high-performance batteries in the North American electrification market, where mid- to long-term growth is expected. The two companies will proceed with discussions toward the establishment of a joint venture company which will supply cathode materials for EV batteries for EVs Honda will produce mainly for the North American market.

The two companies will share each other’s strengths, such as high value-added material technologies and electrification technologies, to produce high-quality cathode materials to be utilized for EV batteries. This will enable the realization of high-performance EVs, which will lead to the acceleration of respective initiatives toward carbon neutrality.