POSCO Holdings Vice President Yoo Byeong-og, right, and SK On CEO Jee Dong-seob hold a memorandum of understanding document regarding the two companies' comprehensive cooperation for the secondary cell business at POSCO Center in Seoul, Wednesday. Courtesy of POSCO Holdings

By Park Jae-hyuk

POSCO Holdings has signed a memorandum of understanding with SK On, Wednesday, for their comprehensive cooperation in the secondary cell business.

The holding firm of POSCO Group dealing with raw materials for batteries explained that it decided to join hands with the electric vehicle (EV) battery manufacturing unit of SK Group in order to jointly come up with countermeasures for the persistent supply chain crisis.

The two companies agreed to collaborate in looking for projects throughout the entire value chain ― from sourcing lithium, nickel and cobalt, as well as cathode and anode materials, to recycling batteries.

They also shared the medium- to long-term expansion plans for SK On's battery production, and discussed how POSCO Group will increase the supply of raw materials to its partner.

After organizing a working-level taskforce, the two firms plan to talk about the medium- to long-term strategies for their overseas business expansion, investments in raw materials, roadmaps for the development of cathode materials, increased supply of anode materials and establishment of networks to collect used batteries.

"The business cooperation between POSCO Group, which has the advantage of having the secondary cell material business, and SK On, which is increasing its market share in the EV battery sector, is expected to improve the competitiveness of Korea's battery industry," POSCO Holdings Vice President Yoo Byeong-og said.

"If POSCO Group's capability and infrastructure create a synergy effect with SK On's technologies, the Korean battery industry will enhance its competitiveness further," SK On CEO Jee Dong-seob said. "We will contribute to improving the status of Korea in the global EV market."