POSCO Future M (003670.KS) is launching its lithium iron phosphate (LFP) cathode materials business for energy storage systems (ESS) in earnest.
POSCO Future M announced Wednesday that it signed a joint venture agreement (JVA) with China's CNGR and its Korean subsidiary Pino on Tuesday for LFP cathode materials production.
Earlier on January 15, POSCO Future M's board approved the construction of an LFP cathode plant through C&P New Materials Technology, a joint venture with CNGR and Pino.
Under the JVA, POSCO Future M will build an LFP cathode plant at the Yeongil Bay 4 General Industrial Complex in Pohang. Construction is scheduled to begin next year, with mass production targeted for 2027. Starting with this investment, the company plans to expand cathode production capacity to up to 50,000 tons.
LFP batteries offer lower output compared to ternary (NCM) batteries but have advantages of lower cost and longer lifespan. They are increasingly being used in various applications including ESS and entry-level electric vehicles.
With this agreement, POSCO Future M will accelerate its LFP cathode business amid rapidly growing market demand and strengthen cooperation with CNGR and Pino across production, technology, and marketing.
Additionally, to enter the LFP market earlier, POSCO Future M plans to convert some high-nickel production lines at its existing Pohang cathode plant to LFP cathode production lines, with supply scheduled to begin in the second half of next year.
