POSCO Future M, Successful Development of LMR Cathode Material... "Will Become a Game Changer for Electric Vehicles"

[Financial News] POSCO Group's battery material subsidiary, POSCO Future M, has succeeded in pilot production of LMR (Lithium Manganese Rich) battery cathode material, which is attracting attention as an 'alternative' to lithium iron phosphate (LFP) batteries led by Chinese companies.
■ Development of LMR Cathode Material to Compete with Chinese LFP
POSCO Future M announced on the 27th that it has completed the development of LMR cathode material and will secure mass production technology within the year. The LMR battery is a product that is expected to become a 'game changer' in the future electric vehicle market.
LMR batteries are rapidly emerging as the next-generation battery, capable of price competition with LFP batteries, which are mainly produced by Chinese battery companies, while offering superior performance. Compared to LFP batteries, LMR batteries can achieve 33% higher energy density, allowing for greater capacity.
As a result, global automakers have recently announced plans to release electric vehicles equipped with LMR batteries. On the 13th, General Motors (GM) of the United States officially announced that it would launch electric vehicles with LMR batteries from 2028. Ultium Cells, a joint venture between LG Energy Solution and GM, plans to start commercial production of LMR prismatic battery cells at its manufacturing facility in the United States. Ford also announced plans to commercialize LMR batteries before 2030 and is currently pilot-producing second-generation LMR batteries.
LMR batteries are a next-generation battery technology with an increased manganese ratio among cathode materials. By using more affordable manganese instead of expensive cobalt and nickel, they enhance cost efficiency while providing greater capacity and energy density. Especially, while LFP batteries are difficult to recycle, LMR batteries have a higher lithium recovery rate, offering greater economic advantages.
■ Securing Mass Production Technology Within the Year, Pursuing Large Orders
Recognizing these advantages, POSCO Future M has selected LMR cathode material as a new flagship product that will become a game changer in the electric vehicle market and has been developing commercialization technology jointly with global automakers and battery companies since 2023. POSCO Future M's Technology Research Institute has concentrated research capabilities with POSCO Holdings Future Technology Research Institute to continuously improve energy density, charge-discharge performance, and stability, resulting in successful pilot production last year. The plan is to secure mass production technology within the year and actively pursue large-scale contract orders.
Recently, at the request of customers, they conducted inspections in the fields of facility operation, safety, and environment necessary for LMR production and obtained approval, bringing them one step closer to a mass production system. POSCO Future M plans to utilize existing NCM (Nickel-Cobalt-Manganese) cathode material production lines to establish a mass production system without large-scale new investments, supplying products on time according to customer requests.
Hong Young-jun, head of POSCO Future M's Technology Research Institute, said, "LMR cathode material has long been recognized for its potential but faced challenges in commercialization due to lifespan issues. However, significant progress has been made through research and development," adding, "We are on the verge of launching products that combine low cost and high energy density in collaboration with customers based on a solid trust relationship."
Following this LMR cathode material development, POSCO Future M plans to expand its LMR product portfolio from 'entry-standard' to 'premium-large' electric vehicle markets by developing next-generation LMR cathode materials with even higher energy capacity in collaboration with POSCO Holdings Future Technology Research Institute. 
cjk@fnnews.com Choi Jong-geun Reporter