POSCO FUTURE M, EcoPro, and L&F, among other Korean battery material companies, are speeding up the development and mass production of lithium iron phosphate (LFP) cathode materials. The secondary battery market is shifting toward LFP as energy storage systems (ESS) spread and the mid- to low-priced electric vehicle market grows. LG Energy Solution has begun mass-producing LFP batteries for ESS, and Samsung SDI and SK On are also planning to mass-produce LFP batteries, which has added momentum.
Until now, the three Korean battery makers have mainly produced ternary batteries such as nickel-cobalt-manganese (NCM), so none of the domestic battery material companies currently mass-produces LFP cathode materials. Cathode material is a key material that determines a battery's capacity, voltage, and power performance by storing and releasing lithium ions during the charging and discharging of a lithium-ion battery to generate electrical energy.
On the 16th, POSCO FUTURE M announced it will build a new LFP cathode material plant in Pohang to respond to the ESS market. The POSCO FUTURE M board approved a plan the previous day to build a dedicated LFP cathode material plant in the Yeongilman 4 General Industrial Complex in Pohang. The plant will break ground next year with the goal of mass production in the second half of 2027. All LFP cathode materials produced at this plant will be supplied for ESS.
The entity building the Pohang LFP cathode material plant is C&P New Material Technology, which POSCO FUTURE M established in 2023 as a joint venture with Chinese precursor specialist CNGR. In Aug., POSCO FUTURE M signed a memorandum of understanding (MOU) with CNGR and Fino, a CNGR subsidiary, to promote the LFP cathode material business and pushed ahead with the Pohang LFP cathode material plant, producing results. POSCO FUTURE M will also convert part of the ternary cathode material production lines at its existing Pohang cathode plant into LFP cathode material production lines, with plans to begin supply at the end of 2026.
L&F is also proactive in mass-producing LFP cathode materials. On Aug. 8, L&F established an LFP-dedicated subsidiary, "L&F Plus." After exploring entry into the LFP market since 2022, the company concluded that creating a dedicated subsidiary for LFP mass production would be better than converting existing NCM lines. Since Mar. 2023, L&F has operated an LFP pilot line at its Daegu Plant 3 and received feedback from customers. L&F Plus is currently building an LFP cathode material plant near Daegu Plant 3, aiming for mass production in the second half of next year. The initial target volume is 30,000 tons, which will be expanded to 60,000 tons in 2027, with plans to increase production up to 120,000 tons depending on customer and market demand.
EcoPro has also moved to respond to the LFP cathode material market. EcoPro BM, EcoPro's cathode material manufacturing specialist, is developing LFP cathode material technology and supplying samples to customers. EcoPro BM currently operates a quasi-mass-production line with an annual capacity of 4,000 tons.
The global cathode material market is shifting toward LFP. According to energy market research firm SNE Research, the total loaded volume of cathode materials used in battery electric vehicles (EVs), plug-in hybrids (PHEVs), and hybrids (HEVs) registered worldwide from January to October was 2,046,000 tons. Of that, LFP cathode materials accounted for 1,253,000 tons, a sharp jump of 63.6% from a year earlier. LFP's share of total cathode loading is about 60% (by weight). Ternary cathode loading came to 727,000 tons, rising only 13.7% from a year earlier.
However, China is leading LFP cathode supply. Chinese companies Hunan Yuneng and Wanrun ranked first and second with 284,000 tons and 198,000 tons, respectively. China's Dynanonic and Ronbay also supplied 166,000 tons and 138,000 tons, taking third and fourth place.
Still, attention is on whether the market trend could shift as LG Energy Solution, Samsung SDI, and SK On map out LFP transition strategies. LG Energy Solution, the first among Korean battery makers, has produced LFP batteries for ESS at its Nanjing, China, plant since 2024. At its standalone plant in Michigan, the United States, it also began early mass production of LFP batteries for ESS in June. It has built LFP battery production lines for ESS at its Ochang plant in North Chungcheong and plans to start operations in 2027. The Poland plant also plans to produce LFP batteries for ESS starting next year.
Samsung SDI also plans to convert some lines at its U.S. joint plant with Stellantis for LFP. SK On plans to convert part of the EV battery production lines at SK Battery America in Georgia into LFP batteries for ESS starting in the second half of next year.
A battery industry official said, "The secondary battery market is moving to the LFP market led by China, but there are no companies in Korea making LFP cathode materials," adding, "Once Korea-made LFP cathode materials are produced and the supply chain is established, the transition to LFP will accelerate."