POSCO Future M partners with CNGR and FINO to expand LFP cathode materials production for ESS, enhancing battery portfolio and global reach.
POSCO Future M has entered into a new strategic collaboration with Chinese precursor producer CNGR to advance the lithium iron phosphate (LFP) cathode material business for energy storage systems (ESS). The announcement was made on August 11, when the companies signed a memorandum of understanding (MOU) at the POSCO Center in Daechi-dong, Gangnam-gu, Seoul. The agreement also involves FINO Inc., CNGR’s Korean subsidiary, which will play a key role in the partnership.
Under this MOU, the three parties will work together on multiple initiatives, including establishing manufacturing facilities dedicated to ESS LFP cathode materials and pursuing joint marketing strategies. This new partnership builds upon an earlier joint venture agreement (JVA) between POSCO Future M and CNGR in 2023, which led to the creation of C&P New Material Technology in 2024 for precursor production. With the current agreement, the companies aim to expand C&P New Material Technology’s scope to also produce LFP batteries alongside precursors.
LFP batteries are known for being more cost-effective and having a longer operational lifespan compared to ternary batteries such as NCM (Nickel Cobalt Manganese). Although they have lower energy output, their durability and affordability make them increasingly popular in certain applications, particularly in energy storage systems and entry-level electric vehicles. ESS applications are especially well-suited for LFP technology, as they have less demanding space and power output requirements than electric vehicles but require longer service life—qualities in which LFP batteries excel.
POSCO Future M is actively broadening its cathode material portfolio to adapt to evolving market demands. The company is traditionally recognized for producing high-performance materials such as high-nickel NCMA (Nickel Cobalt Manganese Aluminum) and NCA (Nickel Cobalt Aluminum), primarily serving the premium electric vehicle segment. In the first half of this year, POSCO Future M also completed development of LMR (Lithium Manganese Rich) cathode materials aimed at entry-level and standard-grade electric vehicles.
In addition, since March, the company has been engaged in joint research and development with the Future Technology Research Institute of POSCO Holdings. Together, they have formed a task force focused on commercializing high-density LFP cathode materials that can deliver greater energy density compared to conventional LFP products. This effort underscores POSCO Future M’s commitment to innovation and market adaptability.
Looking ahead, POSCO Future M intends to further diversify both its anode and cathode product lines. By leveraging the integrated supply chain advantages of the POSCO Group, the company aims to strengthen its presence in the global battery materials market and expand its customer base across the automotive and energy sectors.
