South Korean battery materials manufacturer POSCO FutureM has signed a joint venture (JV) agreement with CNGR and its Korean subsidiary, FINO, to manufacture lithium iron phosphate (LFP) cathode materials.
The companies have agreed to build an LFP cathode material plant that will have an annual production capacity of 50,000 tons. Located in the Yeongil Bay 4 General Industrial Complex in Pohang, South Korea, site construction is scheduled to begin in 2026. Mass production is slated for 2027.
POSCO Future M has long been in discussions with CNGR to strengthen their business partnership across production, technology, and marketing, establishing CNP Advanced Materials Technology, a joint venture with CNGR and Pino, in 2024.
POSCO Future M said it is accelerating its LFP cathode material business in response to rapid growth in the energy storage systems market.
Although LFP batteries deliver lower power output than nickel manganese cobalt batteries, their low price and long lifespan are driving increasing use in various applications, including energy storage and entry-level EVs.
Separately from the contract signing, POSCO Future M plans to convert part of the high-nickel cathode production line at its Pohang cathode material plant into an LFP cathode material production line to begin supplying the LFP market in the second half of 2026.
Source: POSCO
