POSCO FUTURE M said on the 24th it signed a joint investment agreement for lithium iron phosphate (LFP) cathode materials with China's CNGR and Fino, CNGR's Korea subsidiary.
POSCO FUTURE M, to strengthen cooperation with CNGR in the secondary battery materials business, established the joint venture CNP New Material Technology last year with CNGR and Fino and has continued discussions. On the 15th, it held a board meeting and approved the construction of an LFP cathode materials plant through the joint venture. It completed the contract signing on the 23rd, accelerating the LFP cathode materials business.
Following the joint investment agreement, POSCO FUTURE M decided to build an LFP cathode materials plant in the Yeongilman 4 General Industrial Complex in Pohang. Construction will begin in 2026 with mass production targeted for 2027. Starting with this investment, the company plans to expand capacity to as much as 50,000 tons per year.
LFP batteries have lower output than nickel-rich ternary batteries but offer low cost and long life, and their use has recently grown across various fields such as ESS and entry-level electric vehicles. POSCO FUTURE M plans to fully push the LFP cathode materials business and further strengthen cooperation with CNGR across production, technology, and marketing.
Separately from this contract, POSCO FUTURE M has converted part of the high-nickel product lines at its existing Pohang cathode materials plant into LFP cathode materials lines to enter the LFP market early. Supply is set to begin in the second half of next year.