Following discussions since April 2023, South Korea’s Posco Future M and Honda have reached a basic agreement on collaboration for the production of cathode materials for electric vehicle (EV) batteries in Canada. They will now begin detailed discussions with the goal of signing a joint venture agreement before the end of 2024.

Posco Holdings has held the groundbreaking ceremony for the first lithium hydroxide factory in South Korea, at the Yulchon Industrial Complex in South Jeolla province. The company will invest over $450 million up to completion in 2025. It will be able to produce about 25,000 tonnes/year, enough for some 600,000 electric vehicles.

Yulchon is already home to the Posco Future M subsidiary’s cathode material facility. A lithium ore plant is also being built there and it will eventually host a secondary battery material facility.