POSCO FUTURE M will commence its lithium iron phosphate (LFP) cathode material business for energy storage systems (ESS).

POSCO FUTURE M announced on the 11th that it had signed a memorandum of understanding (MOU) with the Chinese precursor corporation CNGR on the 8th to advance the LFP cathode material business.

Yoon Tae-il (the center Deputy Minister of POSCO FUTURE M) signs a memorandum of understanding (MOU) on the 8th at POSCO Center in Daechi-dong, Gangnam-gu, Seoul, to promote the lithium iron phosphate (LFP) cathode material business for energy storage systems (ESS) with Jung Jong-wan (left), Vice Chairman of CNGR, and Fino, CEO. /Courtesy of POSCO FUTURE M

Fino, CNGR's Korean subsidiary, also participated in this MOU. The three corporations plan to collaborate in various fields, including the establishment of production facilities for ESS LFP cathode materials and joint marketing.

POSCO FUTURE M established a joint venture, CNPS Technology, with CNGR in 2023 for precursor production, and it intends to accelerate the expansion of its business cooperation to include LFP cathode materials.

LFP batteries have lower output compared to ternary batteries like NCM (nickel, cobalt, manganese), but they offer advantages of lower cost and longer lifespan. Their applicability has been increasing recently in various fields, including ESS and affordable electric vehicles.

In particular, ESS does not have demanding space and output requirements compared to electric vehicles and requires a long lifespan, leading to a higher preference for LFP batteries. According to the International Energy Agency (IEA), as of 2023, LFP batteries account for approximately 80% of the global ESS market.

POSCO FUTURE M is in a position to actively respond to changing customer demands by diversifying its cathode material product portfolio. Following the premium nickel-rich NCMA (nickel, cobalt, manganese, aluminum) and NCA (nickel, cobalt, aluminum) cathodes produced primarily, it has completed the development of LMR (lithium manganese rich) cathode materials for affordable electric vehicles in the first half of this year.

Since March, a task force (TF) has been formed in collaboration with POSCO Holdings Future Technology Research Institute to conduct research and development aimed at commercializing high-density LFP cathode materials with higher energy density compared to standard LFP cathode materials.

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