POSCO Future M Co., Ltd. and Honda Motor Co., Ltd. have jointly announced today a significant step forward in their collaboration efforts towards producing cathode materials for automotive batteries in Canada. The agreement marks the beginning of detailed discussions with the aim of finalizing a joint venture agreement by the end of 2024.
This collaboration stems from extensive discussions initiated in April 2023, focusing on a broad partnership aimed at achieving carbon neutrality. Recognizing the critical role of cathode materials in electric vehicle (EV) batteries, both companies explored the possibility of cooperation in securing essential battery components, culminating in this foundational agreement.
Cathode materials represent a pivotal component in EV batteries, essential for the advancement of electric mobility. The secure procurement of top-tier cathode materials is pivotal for enhancing the operational framework of both entities. The primary objective of this agreement is to seamlessly implement their respective electrification strategies by ensuring a reliable supply of high-performance batteries in the burgeoning North American electrification market, poised for significant growth in the mid- to long-term.
Under the terms of the agreement, the two companies will engage in discussions to establish a joint venture entity dedicated to supplying cathode materials tailored for EV batteries. These batteries will primarily support Honda’s EV production endeavors targeted at the North American market.
The collaboration will leverage each other’s expertise, encompassing high-value material technologies and electrification prowess, to manufacture premium-quality cathode materials suitable for EV batteries. This synergistic effort is poised to enable the development of high-performance EVs, thereby accelerating both parties’ journey towards carbon neutrality.
