Posco Future M has entered into a joint venture agreement with CNGR and its South Korean subsidiary, Fino, focusing on lithium iron phosphate (LFP) cathode materials. The agreement was finalized during a signing ceremony held Sept. 23, 2025, at Fino's headquarters in Anyang, Gyeonggi-do Province, attended by representatives from all three companies.
This development follows board approval on Sept. 15, 2025, and aims to expand Posco Future M's presence in the rapidly growing energy storage system (ESS) market, which demands cost-effective battery materials.
This JV agreement marks the culmination of ongoing discussions that began with the establishment of CNP New Material Technology in 2024, a collaborative effort between Posco Future M, CNGR and Fino in the secondary battery materials business. Under the terms of the agreement, Posco Future M plans to construct an LFP cathode material plant at Pohang's Yeongil Bay General Industrial Complex 4.
Construction is set to begin in 2026, with mass production targeted for 2027. The annual production capacity is expected to reach up to 50,000 metric tons.
LFP batteries, although having lower output compared to ternary batteries, are gaining traction due to their cost-effectiveness and longer lifespan, suitable for applications such as ESS and entry-level electric vehicles. This agreement enables Posco Future M to fully engage in the LFP cathode material sector to capitalize on increasing market demand and enhance collaboration with CNGR and Fino in production, technology, and marketing.
In addition to the JV agreement, Posco Future M intends to convert parts of its current high-nickel product lines at the Pohang, South Korea, cathode material plant to LFP production lines. This strategic move is intended to facilitate early entry into the LFP market, with product supply anticipated to commence in the second half of 2026.
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