POSCO FUTURE M will build a new lithium iron phosphate (LFP) cathode plant to respond to the surging energy storage system (ESS) market.
POSCO FUTURE M said on the 16th that its board approved on the 15th building a dedicated LFP cathode plant in the Yeongilman 4 General Industrial Complex in Pohang.
Construction will begin next year with a target of mass production in the second half of 2027. All LFP cathodes produced at this plant will be supplied for ESS use.
Earlier, POSCO FUTURE M said it plans to push ahead with building an LFP cathode plant through additional investment in CNP New Material Technology, a joint venture established in 2023 with China's secondary battery materials company CNGR, to which it contributed with CNGR.
Starting with this investment, the company plans to expand production to as much as 50,000 tons (t). Earlier in Aug., POSCO FUTURE M signed an MOU with CNGR and CNGR's Korean subsidiary Fino to pursue an ESS-use LFP cathode business and has been reviewing the project.
LFP batteries have lower output than ternary batteries such as NCM (nickel, cobalt, manganese) and NCA (nickel, cobalt, aluminum), but they are cheaper and last longer. They are increasingly being used in various fields, including ESS and entry-level electric vehicles.
As demand for ESS-use LFP batteries in the North American market has surged recently, major battery makers are converting existing ternary battery production lines to LFP battery production lines to respond to market changes.
POSCO FUTURE M currently focuses on producing ternary cathodes such as NCM and NCA, and with approval of this LFP plant investment, it plans to expand its cathode portfolio to boost order competitiveness.
To enter the LFP market early in line with market and customer needs, the company plans to convert part of the NCM ternary cathode production lines at its existing Pohang cathode plant into LFP cathode production lines and begin supply from late 2026.