SHANGHAI, Jan 5 (SMM) - Under a recently signed agreement, Huayou Cobalt and its subsidiary will supply 15,000 mt of ternary precursors to Zhejiang Puhua Energy Materials Co. from January 2023 to December 2025. Established on May 11, 2018, Zhejiang Puhua New Energy Materials is 9.55% owned by POSCO Holdings, 50.45% held by Pohang Chemical, and 40% held by Zhejiang Huayou New Energy Technology.

Meanwhile, Huayou Cobalt signed another agreement Pohang Chemical. According to the agreement, Huayou Cobalt and its subsidiary will supply 160,000 mt of ternary precursors to Pohang Chemical from January 2023 to December 2025.

Huayou Cobalt's lithium battery business layout is a vertically integrated one, covering multiple links in the industry chain, including cobalt, nickel and copper resources, cobalt salt, nickel sulphate, electro-deposit copper, ternary precursor, iron phosphate precursor, ternary cathode materials, as well as LFP. The current mainstream settlement scheme between ternary precursors and downstream customers is based on the market prices of nickel salt, cobalt salt, and manganese salt plus conversion margins. Therefore, Huayou Cobalt has competitive cost advantages, which could guarantee its profitability.