POSCO FUTURE M entered the LFP cathode materials market by reaching a long-term supply agreement with a domestic battery company for lithium iron phosphate (LFP) cathode materials.
POSCO FUTURE M said on the 6th it will supply more than 190,000 tons of LFP cathode materials to a domestic battery company for six years from next year through 2032. The two companies plan to sign a formal contract in the third quarter after discussing specific terms. The customer was not disclosed to protect trade secrets.
POSCO FUTURE M recently completed converting part of its high-nickel cathode production line at the Pohang plant into an LFP cathode production line to supply LFP cathode materials to the customer in a timely manner. The company is currently proceeding with customer certification for prototypes and plans to begin mass production supply by the end of this year.
In May, CNP New Material Technology, a joint venture between POSCO FUTURE M and Fino-CNGR, began building an LFP cathode plant in the Yeongilman 4 General Industrial Complex in Pohang, aiming for mass production in 2027. The plant plans to ramp up production capacity in stages to as much as 50,000 tons.
Going forward, based on cooperation across POSCO Group, the company plans to apply a new process that uses steelmaking byproducts such as iron oxide and lithium secured from salt lakes in Argentina to produce and supply LFP cathode materials with even greater cost competitiveness.
A POSCO FUTURE M official said, "We are in the final stages of supply contracts for LFP cathode materials with other major customers as well, and we plan to expand LFP cathode production capacity in line with additional orders."