SEOUL -- POSCO Chemical, a unit of South Korea's top steel group POSCO, has secured a new partner for the expansion of its business in Europe through a deal with Britishvolt, a battery startup based in Britain, to develop and supply materials for electric vehicle batteries.
Under a memorandum of understanding, the two companies agreed to cooperate on the joint development of battery materials to be used in Britishvolt's batteries and promote supply contracts. Along with the production of battery materials in Europe, they would work together to set up a sustainable global supply chain to secure raw materials.
Through cooperation with Britishvolt which is building battery plants in Britain and Canada, POSCO Chemical said it will be able to accelerate the expansion of activities in Europe and diversify its customer base.
The partnership will help Britishvolt secure a stable supply of active battery materials. "This is perfectly aligned with our own strict ESG Principles & Commitments and underscores our business model of partnering early with the supply chain to ensure we can manufacture cells for customer requirements,” Britishvolt CEO Orral Nadjari said in a statement on June 30.
POSCO Chemical aims to tap Europe and Indonesia as part of its aggressive strategy to build a mass-production base abroad and become a global player in the battery material market. The company would build a joint venture plant with General Motors in Quebec, Canada, to produce high-nickel cathode active materials.
POSCO Chemical regards the plant in Becancour as a stepping stone for its drive to build a supply chain of core battery materials in North America. Under an eight-year contract, high-nickel cathode active materials produced at the Quebec site will be supplied from 2025 to Ultium Cells, a battery joint venture between GM and its South Korean partner, LG Energy Solution.
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