Umicore has signed a multi-year strategic agreement with Samsung SDI for the supply of close to 80,000 metric tonnes of high-performance NMC (Nickel Manganese Cobalt) cathode materials starting in 2020.
The cathode materials will be supplied from Umicore plants in different regions with the majority of volumes initially produced in Korea. A vast portion of the volumes are intended for automotive applications and a smaller part for energy storage systems.
The agreement provides Samsung SDI security of supply to accomodate their fast-growing lithium-ion battery business in Europe and Asia, particularly in automotive applications. Samsung SDI will further benefit from Umicore’s track record of producing reliable and high-performance complex cathode materials at large scale while meeting the strictest quality and sustainability requirements.
The sizeable volume commitment included in the agreement offers critical predictability and visibility along the EV supply chain, which allows EV manufacturers and their suppliers to plan and develop the needed capacities.
Marc Grynberg, CEO commented: “I am very pleased to have signed this agreement with Samsung SDI which marks another key milestone in the consistent execution of our long-term growth strategy. Furthermore, it underscores that a sustainable battery value chain is taking shape and demonstrates the commitment of key industry players to support the growing penetration of EVs globally.”