POSCO Future M to Promote LFP Cathode Material Business for ESS. Business Diversification

[Financial News] POSCO Future M is diversifying its business by signing an MOU with Chinese battery material manufacturer Zhongwei New Material (CNGR) for the promotion of LFP (lithium iron phosphate) cathode material business for energy storage systems (ESS).
POSCO Future M announced on the 11th that it signed an MOU with CNGR for the promotion of LFP cathode material business at POSCO Center in Daechi-dong, Seoul on the 8th.
This MOU also involves CNGR's Korean subsidiary FINO, and the three companies will cooperate on various measures such as the construction of production facilities for LFP cathode materials for ESS and joint marketing according to the agreement.
In 2023, POSCO Future M signed a joint venture agreement (JVA) with CNGR to cooperate in precursor production and established 'CNP New Material Technology' the following year. This MOU aims to expand the scope of cooperation to include LFP cathode materials beyond precursor production at the existing joint venture CNP New Material Technology, and plans to quickly review the business.
The shareholding of CNP New Material Technology consists of 51% by CNGR, 29% by FINO, and 20% by POSCO Future M.
LFP batteries have lower output compared to ternary batteries such as NCM (nickel cobalt manganese), but they are advantageous due to their low cost and long lifespan, and their utilization is increasing in various fields such as ESS and entry-level electric vehicles.
Especially for ESS, which does not have strict space and output requirements compared to electric vehicles and requires a long lifespan, the preference for LFP batteries is increasing. According to the International Energy Agency (IEA), LFP batteries accounted for about 80% of the global ESS market as of 2023.
POSCO Future M is actively responding to changing customer needs by diversifying its product portfolio of cathode materials, which are key materials for electric vehicle batteries.
POSCO Future M focuses on producing premium-grade high-nickel NCMA (nickel cobalt manganese aluminum) and NCA (nickel cobalt aluminum) for electric vehicles. In the first half of this year, it completed the development of LMR (lithium manganese rich) cathode materials for entry and standard-grade electric vehicles.
Additionally, since March, it has been conducting research and development by forming a task force (TF) with POSCO Holdings Future Technology Research Institute to commercialize high-density LFP cathode materials with higher energy density compared to general-purpose LFP cathode materials.
POSCO Future M plans to continuously expand its global customer base of automakers and battery companies by strengthening its diverse portfolio of cathode and anode materials and manufacturing capabilities, and leveraging the supply chain competitiveness of the POSCO Group. 


hjkim01@fnnews.com Kim Hak-jae Reporter