Signs MOU with CNGR on 8th for LFP cathode material business development…pursuing production-facility construction, joint marketing, etc.
Diversifies portfolio to include LMR and LFP in addition to existing ternary high-nickel cathode materials
POSCO Future M signed an MOU with CNGR on the 8th at the POSCO Center in Daechi-dong for pursuing the LFP (lithium-iron-phosphate) cathode material business.
CNGR’s Korean subsidiary, FINO, also participated in this MOU. The three companies will cooperate on the construction of LFP cathode material production facilities for ESS (Energy Storage System) and joint marketing, as per the agreement.
POSCO Future M signed a joint venture agreement (JVA) with CNGR in 2023 to cooperate on precursor production and established C&P Advanced Technology* the following year. This MOU aims to rapidly expand the scope of cooperation from precursor production to LFP cathode materials at the C&P Advanced Technology.
* C&P Advanced Technology ownership structure: CNGR 51%, FINO 29%, POSCO Future M 20%
LFP batteries have a lower output compared to ternary batteries, such as NCM (nickel-cobalt-manganese), but offer advantages of low cost and long lifespan. Recently, they have been increasingly applied in various fields, including ESS and entry-level electric vehicles.
In particular, ESS does not have stringent space and output requirements compared to electric vehicles, and it requires a long lifespan; therefore, the preference for LFP batteries has been increasing even more recently. According to the International Energy Agency (IEA), LFP batteries held approximately 80% market share in the global ESS market as of 2023.
POSCO Future M is diversifying its cathode material product portfolio to respond more actively to changing customer needs. POSCO Future M primarily produces high-nickel NCMA (nickel-cobalt-manganese-aluminum) and NCA (nickel-cobalt-aluminum) for premium electric vehicles, and completed development of LMR (lithium-manganese-rich) cathode materials for entry and standard-grade electric cars in the first half of this year. Additionally, since March, the company has been pursuing research and development by organizing a task force (TF) jointly with POSCO Holdings Future Technology Research Institute for the commercialization of high-density LFP cathode materials with higher energy density compared to general-purpose LFP cathode materials.
From now on, POSCO Future M plans to continuously expand its global customer base in the automotive and battery industries, leveraging diverse cathode and anode material product portfolios, strengthened manufacturing capabilities, and supply chain competitiveness at the POSCO Group level.
▲ POSCO Future M signed an MOU with CNGR and FINO for LFP cathode material business development on the 8th at the POSCO Center in Daechi-dong. From left: CNGR Vice Chairman Zhu Zongyuan, POSCO Future M Energy Materials Business Division Head Yoon Tae-il, FINO CEO Li Bin.