South Korea’s POSCO Group and SKC will jointly develop a dream lithium metal cathode material for commercialization by 2026 under a strategy to raise their competitiveness on the materials market using a product with 10 times higher energy density.

Both sides are also mulling a joint venture for production of the material and setup of a related supply chain.

The two companies on Tuesday signed a memorandum of understanding on comprehensive cooperation in next-generation battery materials at SKC headquarters in Seoul. They will jointly develop next-generation battery cathode materials such as those of lithium metal.

The cutting-edge lithium metal cathode material is manufactured by plating lithium metal on copper foil, which is a copper film. Copper foil technology is crucial in manufacturing such material, explaining why POSCO Holdings Inc. teamed up with SKC, the global leader in the sector.

The energy density of the material developed by the two sides will reach 3,860 mAh per gram, over 10 times higher than 350 mAh of graphite-based cathode material. Commercial application can drastically boost the mileage of electric vehicles.

The industry predicts that the material could also be used in all solid-state batteries.

The two sides are also considering joint projects such as production of the lithium material.

The group and SKC will cooperate in development of process technology for materials production and supply of raw materials. POSCO International, which has a trade network for minerals such as copper, which is used to make copper foil, will set up a supply chain for battery raw materials with SKC.

“We will produce meaningful results on the global market,” SKC President Park Won-cheol said.

“We will create significant synergy on the battery market,” POSCO Holdings Inc. Vice President Yoo Byung-ok added.