Posco Chemical said on Monday that it will be supplying battery cathode and anode to Norway’s Morrow Batteries.
How much it will supply it yet to be fixed but the Norwegian company is planning to start battery production in 2024.
The South Korean chemical company has been providing samples to Morrow since earlier in the year, it said.
The Norwegian company is currently developing its own battery cell technology and had used Posco Chemical’s cathode and anode in this, a Posco Chemical spokesperson said.
This will likely lead to a large supply deal in the future, they added.
Morrow was currently building a water-powered battery production facility at Arendal, which will have a production capacity of 42GWh per year once it is completed.
Agdel Energy Venture, a subsidiary of Norway’s largest electric utility Statkraft, and Denmark’s pension fund PKA are some of Morrow’s investors.
Posco Chemical was currently supplying its cathode and anode to battery cell makers in Europe, the US and China.
This year, it has formed joint ventures or bought stakes in Chinese mining companies to ensure a stable supply of raw materials needed for cathode and anode production.
The company recorded 505 billion won in sales and 31.5 billion won in operating profit during the third quarter this year.
According to analyst firm IHS Markit, the European electric vehicle market is expected to grow from 82GWh this year to 410GWh by 2026.