POSCO Future M partners with CNGR and FINO to build LFP cathode capacity, targeting ESS demand and cost-efficient battery markets.
POSCO Future M is stepping up its expansion into the lithium iron phosphate (LFP) cathode materials segment as it positions itself to capture rapidly rising demand for cost-efficient battery solutions, particularly within the energy storage system (ESS) market. The company’s latest strategic move reflects broader industry trends favoring durable and affordable battery chemistries amid accelerating global energy transition efforts.
To advance this objective, POSCO Future M has entered into a joint venture agreement with CNGR and its Korean subsidiary FINO for the development and production of LFP cathode materials. The signing ceremony took place on the 23rd at FINO’s headquarters in Anyang, Gyeonggi-do Province. Senior executives from all participating companies attended the event, underlining the strategic importance of the partnership. Representatives included leadership from POSCO Future M’s energy materials division, vice presidents from CNGR, and chief executives from FINO and CNP New Material Technology.
The agreement builds on collaboration efforts that began in 2024, when POSCO Future M established CNP New Material Technology as a joint venture with CNGR and FINO. That initiative was designed to strengthen cooperation across the secondary battery materials value chain, leveraging each partner’s expertise in production capabilities, raw material processing, and market access. Since its formation, the joint venture partners have engaged in extensive discussions to identify optimal investment strategies and production pathways for LFP cathode materials.
Following approval by POSCO Future M’s board of directors earlier this month, the company has now formalized plans to construct a dedicated LFP cathode material manufacturing facility. With the signing of the joint venture agreement completed on the 23rd, the project has officially moved into its execution phase, signaling a decisive acceleration of the company’s LFP business strategy.
Under the agreement, the new LFP cathode material plant will be built at the Yeongil Bay General Industrial Complex 4 in Pohang. Construction is scheduled to begin in 2026, with mass production targeted for 2027. Initial output will be scaled progressively, with plans to expand annual production capacity to as much as 50,000 tons as market demand grows.
Although LFP batteries generally offer lower energy density compared to ternary lithium-ion batteries, their competitive cost structure, longer cycle life, and enhanced thermal stability have driven strong adoption. These characteristics make LFP chemistry particularly attractive for applications such as ESS installations and entry-level electric vehicles, where safety and affordability are key considerations. As global demand for such solutions continues to rise, securing stable and localized LFP cathode material supply has become a strategic priority.
The joint venture agreement also opens the door for broader collaboration between the partners, extending beyond manufacturing into areas such as technology development, process optimization, and joint marketing initiatives. This integrated approach is expected to strengthen competitiveness while accelerating innovation across the battery materials ecosystem.
In addition to the newly planned facility, POSCO Future M is pursuing parallel measures to gain an early foothold in the LFP market. The company intends to convert part of its existing high-nickel cathode material production lines at its Pohang plant to LFP cathode material lines. Through this conversion, initial LFP supplies are expected to begin in the second half of 2026, enabling the company to respond quickly to customer demand ahead of full-scale plant commissioning.
