POSCO Future M Co., Ltd. and Honda Motor Co., Ltd. have announced a significant collaboration for the production of cathode materials for automotive batteries in Canada. The two companies have reached a basic agreement and will commence detailed discussions with the aim of signing a joint venture agreement by the end of 2024.
The collaboration stems from discussions on a comprehensive partnership initiated in April 2023, focused on achieving carbon neutrality. Recognizing the importance of key battery materials in realizing this goal, both companies have explored the possibility of cooperation in procuring cathode materials, leading to the current agreement.
Cathode materials are vital components of electric vehicle (EV) batteries, making the stable procurement of high-quality cathode materials crucial for both companies. Through this collaboration, POSCO Future M and Honda aim to fortify their business structures by ensuring a steady supply of high-performance batteries in the North American electrification market, which is anticipated to witness mid- to long-term growth.
The joint venture company, to be established as a result of this agreement, will supply cathode materials for EV batteries primarily for Honda’s EVs destined for the North American market. Leveraging each other’s strengths in high value-added material technologies and electrification, the collaboration seeks to produce high-quality cathode materials that will contribute to the realization of high-performance EVs.
Yukio Ito, CEO of POSCO Future M, expressed enthusiasm for the collaboration, highlighting its potential to accelerate initiatives toward carbon neutrality. Similarly, Honda’s representative emphasized the significance of the partnership in strengthening the company’s electrification strategies and contributing to the production of sustainable and high-performance EVs.
As discussions progress towards the establishment of the joint venture, both companies are committed to leveraging their expertise to produce cathode materials that meet the highest standards of quality and performance, ultimately driving the advancement of EV technology and sustainability efforts.
