Posco Holdings is strengthening its position in the global battery-materials industry through a strategic partnership with China-based Ronbay Technology, combining battery-grade lithium supply with expanded cooperation in spent-battery recycling.
The two companies signed a strategic memorandum of understanding at Posco Center on Wednesday. The agreement covers multiple stages of the battery-materials value chain, from lithium production and supply to the recovery and recycling of materials from used batteries.
Under the partnership, Posco will supply battery-grade lithium to Ronbay, a major producer of high-nickel cathode materials. Ronbay has also been expanding its portfolio into lithium iron phosphate (LFP), lithium manganese iron phosphate (LMFP) and sodium-ion battery materials. Battery-grade lithium is produced to meet the purity and impurity requirements needed for battery manufacturing, allowing it to enter downstream production without additional purification.
Posco plans to supply lithium from three production sources. Posco Pilbara Lithium Solution produces battery-grade lithium from lithium ore, while Posco Argentina produces lithium from brine resources. Meanwhile, Posco HY Clean Metal recovers lithium from spent batteries, supporting the group's focus on establishing a more circular battery-materials supply chain.
The companies expect to complete quality certification for battery-grade lithium hydroxide produced from ore by Posco Pilbara Lithium Solution during the fourth quarter. Following certification, Posco and Ronbay will work together to establish a foundation for commercial-scale production.
Recycling is another major area of cooperation. Posco HY Clean Metal already supplies recovered nickel, cobalt and manganese to Ronbay's Chinese operations and EMT, Ronbay's precursor-material subsidiary in South Korea. The companies now intend to broaden this relationship by cooperating on the recovery and recycling of spent-battery materials across international markets.
A Posco Group spokesperson said the company plans to diversify its portfolio by expanding cooperation with Ronbay into additional battery materials, including products used in energy-storage systems. The partnership could support greater diversification of global battery-materials supply chains while strengthening Posco's role as a Korean supplier of critical resources.
The agreement aligns with Posco Group's broader strategy to expand lithium production. Lithium has become one of the group's core growth areas alongside steel, strategic resources and energy. Posco aims to reach annual lithium production capacity of 173,000 tons by 2033.
The partnership could therefore strengthen Posco's access to downstream battery demand while giving Ronbay a more diversified source of lithium and recycled critical materials.
Impact on Chemical Commodity Prices
The development could provide a moderately supportive influence on lithium and lithium hydroxide prices by strengthening downstream demand and creating additional commercial offtake opportunities. However, the effect may remain limited in the near term because Posco's new capacity will take time to scale. Expanded battery recycling could increase the supply of recovered nickel, cobalt, manganese and lithium, potentially limiting price increases for these commodities over the medium term. Stronger adoption of LFP, LMFP and sodium-ion technologies could also alter the demand mix for nickel and cobalt-based materials. Overall, lithium hydroxide prices could receive the strongest near-term support, while recycled battery metals may face comparatively softer pricing pressure.
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