South Korea's POSCO Holding Co. and LG New Energy Co. have formed an alliance to strengthen cooperation in the secondary battery sector. Posco, which is involved in the entire battery material industry, and LG New Energy, a global battery manufacturer, plan to enhance their product competitiveness by leveraging their respective strengths through cooperation.

Posco Chairman Choi Jeong-woo and LG New Energy Vice Chairman Kwon Young-soo signed a memorandum of understanding on strategic business cooperation for secondary battery materials in Yeouido, Seoul on Monday, the two companies said. The two companies will strengthen cooperation in the medium and long-term supply of anode and cathode materials, the development of new generation products and materials, and the reuse of batteries.

At the signing ceremony, LG New Energy announced its plan to purchase anode and cathode materials for the next seven years, while POSCO announced its plan to supply rechargeable battery materials and accelerate the expansion of plants in each region under the IRA. The two companies plan to sign a medium - and long-term contract for anode and cathode materials this year. In the field of recycling and next-generation anode materials, the two companies will flesh out their business and technical cooperation through working groups.