POSCO Future M and CNGR join forces for the development of lithium-iron phosphate cathode materials
A joint venture between Posco Future M, CNGR, and FINO, named C&P Advanced Technology JV, is set to commence commercial production of LFP cathode materials for energy storage systems (ESS) in 2026. The factory for this production will be located in Pohang, North Gyeongsang Province, South Korea.
The joint venture, established in 2024, is a vehicle for the implementation of the collaboration between the three companies. CNGR holds 51% of the joint venture, FINO 29%, and Posco Future M 20%. The initial focus of the joint venture was on the production of precursors for battery cathodes, but it has since expanded to include the production of LFP cathode materials.
The exact production capacity of the planned LFP cathode material plant has not been disclosed publicly by the companies. Series production is scheduled to begin at this facility in 2026. The joint venture has signed a memorandum of understanding with CNGR and FINO, Chinese and South Korean battery materials suppliers respectively, and plans for joint marketing activities are also in the works.
Posco Future M's participation in this collaboration aligns with its strategy to diversify beyond nickel-rich cathodes into cost-effective, long-life LFP cathodes favored in ESS applications. The collaboration aims to jointly develop the business of cathode materials for lithium iron phosphate batteries.
The factory in Pohang is for the production of LFP cathode materials, and the production facilities for LFP cathode materials are part of the planned collaboration. The joint venture does not currently have any public statements about possible production capacities or timelines beyond 2026.
This expansion into LFP cathode materials production is a significant step for Posco Future M, as it positions the company to meet the growing demand for cost-effective, long-life battery solutions in the energy storage market. The joint venture is expected to contribute to the advancement of the global battery industry, particularly in the development of LFP cathode materials.
The joint venture, consisting of Posco Future M, CNGR, and FINO, is not only focused on battery cathode precursors but also the production of LFP cathode materials, a crucial component in energy storage systems (ESS), as indicated by their signed memorandum of understanding. This expansion into LFP cathode materials production is a strategic move for Posco Future M, aligning with their objective to diversify into cost-effective, long-life LFP cathodes, and contributing to the advancement of the global battery industry and energy storage finance sector.
