This is an amended filing · View original →
POSCO FUTURE M CO., LTD. Samsung SDI battery materials contract revised to KRW 21.2 trillion, with part switched to LFP
PAI summary · Not investment advice
POSCO FUTURE M CO., LTD.'s 2023 cathode supply contract with Samsung SDI was revised from KRW 40.0 trillion to KRW 21.2 trillion, shifting part of the NCA volume to LFP.
Contract amount
KRW 21.2 trillion
1,068.0% of recent revenue · changed from KRW 40.0 trillion
Key facts
- Contract details
- Mid- to long-term supply contract for battery materialsProduct supply · previously a contract for high-nickel NCA cathode materials for EVs
- Recent revenue
- KRW 2.0 trillion2021 consolidated
- % of revenue
- 1,068.0%Previously 2,011.8%
- Counterparty
- Samsung SDI
- Contract period
- Jan 30, 2023 – Dec 31, 2032
- Contract date
- Jan 30, 2023
- Payment terms
- Collected as sales proceedNo down payment
- Original contract disclosure date
- Jan 30, 2023
Commentary
AI commentary · Not investment advice
What happened
POSCO FUTURE M revised its long-term battery materials supply contract signed with Samsung SDI in 2023. The original deal covered NCA cathode materials (materials used in a battery's positive side) for EVs. The two companies agreed to switch part of that volume to LFP cathode materials. The contract value changed from KRW 40.0 trillion to KRW 21.2 trillion: KRW 15.2 trillion for NCA and KRW 6.1 trillion for LFP.
In the company's terms
The company said the combined supply volume is larger than in the original contract. The value fell because unit prices are linked to lithium prices, which are lower than when the deal was signed. The contract equals 1,068.0% of 2021 consolidated revenue of KRW 2.0 trillion, compared with 2,011.8% before the correction.
What changes for shareholders
The amount was converted at KRW 1,358.5 per USD and may change with processing costs or exchange rates. The two companies are also discussing other substitute materials and will disclose any decision. The contract runs until 2032.12.31.
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