POSCO Future M is ramping up its lithium iron phosphate (LFP) cathode material business to meet soaring demand in the energy storage system (ESS) market for mid- to low-cost battery materials.
The company signed a joint venture agreement (JVA) with CNGR and its Korean subsidiary, FINO, on December 23 at FINO’s headquarters in Anyang, Gyeonggi-do Province.
The ceremony was attended by Tae-il Yoon, Head of POSCO Future M’s Energy Materials Marketing Division, Liu Xingguo and Zhu Zongyuan, Vice Presidents of CNGR, Dong-hwan Kim, CEO of FINO, and Dai Zhufu, CEO of CNP New Material Technology.
POSCO Future M established CNP New Material Technology in 2024 as a joint venture with CNGR and FINO to boost collaboration in the secondary battery materials sector.
Following board approval on December 15 to build an LFP cathode material plant under this venture, the company finalized the contract on December 23, signaling a major acceleration of its LFP business.
With the agreement in place, POSCO Future M will construct an LFP cathode material plant at Pohang’s Yeongil Bay General Industrial Complex 4. The company plans to break ground in 2026 and begin mass production in 2027, aiming for an eventual annual capacity of up to 50,000 tons.
“While LFP batteries have lower output than ternary batteries, their cost and lifespan advantages have driven increased adoption across various applications, including ESS and entry-level electric vehicles,” the company said.
"This agreement enables POSCO Future M to fully launch its LFP cathode material business to respond to rapidly growing market demand and to strengthen collaboration with CNGR and FINO across all business areas, including production, technology, and marketing.”
Separately, POSCO Future M will convert parts of its existing high-nickel production lines at the Pohang cathode plant to LFP production, aiming to secure an early market entry with supply starting in the second half of 2026.
