Choi Jeong-woo, chairman of POSCO Holdings Inc., will meet with Jim Farley, chief executive officer of Ford Motor Co., in the U.S. this week, signaling partnership in the supply of cathode materials, a crucial component for electric vehicle (EV) batteries.

According to sources from the conglomerate circle on Tuesday, Choi, who recently embarked on a business trip to North America, will convene with Farley at Ford’s headquarters in Michigan.

The meeting marks the first encounter between the two in nine months. Choi and Farley met in September at POSCO Center in Seoul.

Industry observers are paying close attention to Ford’s continued engagement with POSCO Group, which has been collaborating with SK on Co. and EcoPro BM Co. within the domestic battery value chain.

POSCO Group has established a battery alliance with another major U.S. automaker General Motors Co. (GM).

Ford has been actively seeking to diversify its supply chain for EV batteries since the implementation of the U.S. Inflation Reduction Act (IRA) last year.

In response, POSCO Group has adopted a strategic approach by reducing reliance on China’s dominant EV battery materials supply chain and instead sourcing and processing minerals directly from overseas.

Affiliated companies such as POSCO International and POSCO Future M have been instrumental in this endeavor.

Analysts speculate that the meeting between Choi and Farley could potentially result in POSCO Future M supplying Ford with anodes. Anode materials account for 40 percent of a battery’s cost and play a crucial role in determining its performance, including capacity and output.

While specific details regarding a joint venture cannot be disclosed at this time, POSCO Future M President Kim Jun-hyung told reporters Monday that significant developments were taking place, saying that the company is exploring opportunities with global automakers alongside ongoing discussions.

Previously, POSCO Future M established Ultium CAM, a cathode material producer, in partnership with GM in July last year. The company is currently constructing a 30,000-ton-per-year anode plant in B?cancour, Quebec, Canada, with an expected completion date of 2024.

During Choi’s visit to North America, he inspected the construction site of the anode plant in B?cancour and engaged in discussions with GM CEO Mary Barra regarding additional investments in Ultium CAM.

By Oh Soo-hyun and Minu Kim

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