In response to the China-centric lithium iron phosphate (LFP) cathode materials, POSCO FUTURE M has embarked on the development of lithium manganese rich (LMR) cathode materials. Although LMR cathode materials surpass LFP materials in energy density and other aspects, securities firms assessed on the 10th that technical issues and material localization need to be addressed.
POSCO FUTURE M held an "LMR Tech Seminar" the day before, explaining the development status of LMR cathode materials. LMR cathode materials are products that reduce cobalt and nickel content while increasing the relatively inexpensive manganese content. Recently, General Motors (GM) and LG Energy Solution announced that they would apply prismatic LMR batteries to electric vehicles starting in 2028.
The LMR battery is said to be able to secure about 33% higher energy density than the LFP battery. This means it can increase the driving range. Additionally, the value of precious metals recovered during recycling is high, giving it price competitiveness compared to LFP batteries.
Furthermore, LMR cathode materials can be produced using existing production facilities for ternary (NCM, nickel-cobalt-manganese) cathode materials. Noo Ho, a researcher at MERITZ Securities, said, "From POSCO FUTURE M's perspective, which has focused on mass-producing ternary cathode materials, LMR cathode materials can be produced with reduced investment costs and high productivity through replacing existing lines."
However, there is a common opinion that many technical challenges need to be resolved. LMR cathode materials are still more expensive than LFP cathode materials, and there are also gas treatment issues that arise during the charging and discharging process.
Kim Ye-rim, a researcher at Korea Investment & Securities, noted, "There is the most significant problem of manganese leaching," adding, "Manganese leaching is one of the key reasons why past OLO (Over Lithiated Oxide) series cathode materials failed to commercialize." POSCO FUTURE M is on the position to fundamentally solve the manganese leaching problem through structural design that stabilizes manganese in the Mn4+ state within the LMR cathode materials.
Securing precursors to increase the voltage and capacity of LMR cathode materials is also a challenge. Jang Jeong-hoon, a researcher at Samsung Securities, stated, "The LMR precursor market has not yet been established," adding that "POSCO FUTURE M needs to localize LMR precursors to respond to large-scale mass production going forward."
POSCO FUTURE M presented a blueprint to showcase the first-generation LMR cathode materials in 2028 and the second-generation LMR cathode materials in 2029. There is uncertainty that the timeline may change depending on the management strategies of complete vehicle manufacturers.
The moves of POSCO FUTURE M have been positively evaluated. This is because they are aiming for cost reduction and product and customer diversification in a situation where the 탈(脫)중국 (de-China) movement is continuing.
Kwon Jun-soo, a researcher at Kiwoom Securities, said, "Global automobile manufacturers are requesting non-Chinese and qualified materials, so I expect that POSCO FUTURE M's position in the U.S. market will strengthen in the future."