Expands supply from a single ternary product to LFP and LMO, as well as synthetic graphite anode materials… completing a “one-stop supply system” for secondary battery materials

Builds a K-battery value chain through cooperation between the two companies… enhancing global competitiveness

POSCO Future M (CEO EOM Gi Chen) will supply Samsung SDI with KRW 6 trillion worth of LFP (lithium iron phosphate) cathode materials on a long-term basis.

On the 6th, POSCO Future M signed a long-term supply contract for battery materials with Samsung SDI to enable the “one-stop supply” of secondary battery materials, including LFP cathode materials.

The formal contract sharply increases the volume to more than double what was agreed with Samsung SDI in August, when the two companies reached a large-scale, long-term supply agreement for 190,000 tons of LFP cathode materials from 2027 through 2032.

The contract signed with Samsung SDI that day is a comprehensive agreement that brings together the individual contracts for the main products POSCO Future M supplies, and is expected to serve as a foundation for managing product-specific contracts more systematically going forward. As the first integrated supply agreement between POSCO Future M and Samsung SDI, it is also anticipated to be a turning point that solidifies the two companies’ strategic partnership.

Under this contract, the two companies agreed to amend the supply contract POSCO Future M signed with Samsung SDI in 2023, expanding the products covered from NCA alone to include LFP cathode materials. They also agreed to broaden their future cooperation to include LMO (lithium manganese oxide) cathode materials and synthetic graphite anode materials, among others.

POSCO Future M expects its supply volume to rise by approximately 45% from existing levels as its supply lineup broadens from mainly NCA to LFP, LMO, and synthetic graphite, making the company a key supplier of secondary battery materials to Samsung SDI.

Going forward, Samsung SDI will be able to secure non-PFE (non-prohibited foreign entity) cathode and anode materials and stabilize its materials procurement supply chain. POSCO Future M will be able to use the confirmed volumes to improve utilization rates and to plan future facility expansion and raw material procurement with greater precision, raising not only its investment efficiency but also its business predictability.

By building a K-battery value chain through their strategic partnership, the two companies can enhance their global competitiveness in the in the ESS market as well as the electric vehicle market.

POSCO Future M is the only company in Korea with a materials portfolio that enables it to supply natural and synthetic graphite anode materials, as well as a wide range of cathode materials, including ternary materials (such as NCA and NCM), LFP, and LMO, among others. The company continues to discuss supplying cathode and anode materials to major battery makers and automakers, building on this portfolio to navigate global trade regulations.

In July, POSCO Group announced its future growth strategy, presenting a vision to build a Triple-Core system and grow into a “national supplier of critical resources.” The system spans industrial resources (steel), strategic resources (such as lithium, cathode and anode materials, and rare earths), and energy resources (LNG and renewable energy).

POSCO Future M aims to continue strengthening the competitiveness of its cathode and anode materials business by leveraging POSCO Group’s value chain, including lithium salt lakes and graphite mines, and to further solidify its position as a core strategic resources company within the group.

▲ On the 6th, POSCO Future M and Samsung SDI met at Samsung SDI’s Dongtan site to sign a long-term supply contract for battery materials to enable the “one-stop supply” of secondary battery materials, including LFP cathode materials. (From left) YOON Tae Il, Head of the Energy Materials Marketing Division at POSCO Future M, and LEE Kwang Soo, Head of the Purchasing Center at Samsung SDI

With this contract, now supplies cathode and anode materials to all three Korean battery makers… strengthening its foundation for mid- to long-term growth

Covers three years from next year through 2029, extendable by two more years upon mutual agreement

POSCO Future M (CEO EOM Gi Chen) has signed a large-scale supply contract with SK On for LFP (lithium iron phosphate) cathode materials.

Hard on the heels of last month’s long-term agreement to supply 190,000 tons of LFP cathode materials to a Korean battery maker, the company has now secured another major contract as it moves into the LFP market in earnest.

POSCO Future M has been working with SK On as a supplier of anode materials and plans to strengthen the partnership further through this contract, its first to supply SK On with cathode materials. The contract also means POSCO Future M now supplies cathode and anode materials to all three Korean battery makers, broadening its customer portfolio and putting its mid- to long-term growth on an even firmer foundation.

The contract, signed on the 22nd, is worth approximately KRW 1.1 trillion over three years, from 2027 through 2029, and can be extended by an additional two years upon agreement between the two companies.

While LFP batteries have lower power output than ternary batteries such as NCM (nickel-cobalt-manganese) and NCA (nickel-cobalt-aluminum), their strengths lie in competitive pricing and a long lifespan. With power demand recently surging due to the build-out of AI data centers, among other factors, demand for LFP batteries used in ESS is growing to ensure a stable power supply. LFP batteries are also increasingly being adopted in the electric vehicle market, particularly in entry-level models.

POSCO Future M is actively responding to customer demand by adding LFP cathode materials to its existing portfolio centered on ternary (NCM and NCA) materials. The company recently completed converting part of its high-nickel cathode material production lines at the Pohang plant to LFP cathode material production, and is set to begin mass-production supply from the end of this year. POSCO Future M plans to continue expanding production capacity by converting more lines as further orders come in.

Going forward, the company also plans to produce and supply LFP cathode materials with further improved cost competitiveness and quality by applying a new process that uses lithium from salt lakes in Argentina, drawing on raw material supply chain cooperation across POSCO group.

POSCO Future M continues to hold discussions with major battery makers and automakers on supplying cathode and anode materials, backed by a diverse product portfolio and by a supply chain and technological capabilities that can navigate global trade regulations. The company is also stepping up the expansion of its production capacity. Its moves include a KRW 1 trillion long-term supply contract for synthetic graphite anode materials, signed with a global automaker in March this year, and plans to invest approximately KRW 357 billion in a new synthetic graphite anode material plant in Vietnam. A plant to process spherical graphite, an intermediate material for natural graphite anode materials, is under construction at the Saemangeum National Industrial Complex in Jeonbuk and is scheduled to begin trial operation in early 2027, with completion and full-scale mass production planned for the second half of the year.

In July, POSCO group announced its future growth strategy, outlining a vision to build a Triple-Core system and become a “national supplier of critical resources.” The system spans industrial resources (steel), strategic resources (such as lithium, cathode and anode materials, and rare earths), and energy resources (LNG and renewable energy).

In line with this strategy, POSCO Future M aims to build on its unrivaled technology to strengthen its business competitiveness and expand its markets, and to emerge as a global leader in the cathode and anode materials business, one of the pillars of the group’s strategic resources.

A view of POSCO Future M’s Pohang cathode material plant, located in Yeongil Bay Industrial Complex 4, Pohang. The company recently completed converting part of its high-nickel cathode material production lines at the Pohang plant to LFP cathode material production, and plans to continue expanding production capacity by converting more lines as customer orders come in.

Pohang plant production lines converted from high-nickel to LFP to meet customer demand… prototype certification underway, with mass production supply set to begin by the end of the year

Continuing supply negotiations with global battery makers and automakers based on supply chain and technological capabilities to address trade regulations

POSCO Future M officially launched its LFP cathode material business on the 6th, reaching a large-scale, long-term supply agreement with a major Korean battery maker for lithium iron phosphate (LFP) cathode materials.

The agreement, reached to preemptively address surging North American ESS demand, will see POSCO Future M supply more than 190,000 tons of LFP cathode materials to the battery maker over six years, from next year through 2032. The two companies plan to finalize the terms and sign a formal contract in the third quarter.

Leveraging POSCO group-level collaboration, the company plans to produce and supply LFP cathode materials with enhanced cost competitiveness by applying new processes that use steelmaking by-products, such as iron oxide, and lithium sourced from salt lakes in Argentina.

POSCO Future M is in the final stages of negotiating LFP cathode material supply contracts with other major customers and plans to expand production capacity in line with additional orders.

While LFP batteries have lower power output than ternary batteries such as NCM (nickel-cobalt-manganese) and NCA (nickel-cobalt-aluminum), they offer the advantages of lower cost and longer lifespan. With power demand surging recently due to the expansion of AI data centers, demand for LFP batteries for ESS applications is growing to ensure a stable power supply. LFP battery adoption is also increasing in the electric vehicle market, particularly for entry-level models.

To ensure the timely supply of LFP cathode materials to customers, POSCO Future M recently completed the conversion of portions of its high-nickel cathode material production lines at the Pohang plant into LFP cathode material production lines. The company is currently undergoing prototype certification with customers and plans to begin mass production supply by the end of this year.

The company is also continuing negotiations for cathode and anode material supply with global battery makers and automakers, leveraging its supply chain and technological capabilities to navigate trade regulations across various countries. In March, the company signed a large-scale, long-term supply contract worth approximately 1 trillion won with a global automaker for synthetic graphite anode materials, and is investing approximately 357 billion won to build a new synthetic graphite anode material plant in Vietnam to expand production capacity.

Separately, CNP New Material Technology — a joint venture between POSCO Future M and FINO-CNGR — began construction of an LFP cathode material plant at Pohang’s Yeongil Bay General Industrial Complex 4 in May, targeting mass production in 2027. The plant will expand production capacity in phases to a maximum of 50,000 tons.

▲ Aerial view of POSCO Future M’s Pohang cathode material plant located in Yeongil Bay Industrial Complex 4, Pohang. POSCO Future M is currently undergoing customer certification for prototypes after converting portions of its ternary high-nickel cathode material production lines in Pohang to LFP production lines.

Accelerating business development with the completion of the joint venture agreement following last week’s board approval

POSCO Future M is accelerating its LFP cathode material business to meet rapidly growing demand in the ESS market for mid- to low-cost battery materials.

POSCO Future M has signed a joint venture agreement (JVA) with CNGR and FINO, CNGR’s Korean subsidiary, for lithium iron phosphate (LFP) cathode materials. The signing ceremony, held on the 23rd at FINO’s headquarters in Anyang, Gyeonggi-do Province, was attended by Tae-il Yoon, Head of POSCO Future M’s Energy Materials Marketing Division, Liu Xingguo, Vice President of CNGR, Zhu Zongyuan, Vice President of CNGR, Dong-hwan Kim, CEO of FINO, and Dai Zhufu, CEO of CNP New Material Technology.

POSCO Future M established CNP New Material Technology in 2024 as a joint venture with CNGR and FINO to strengthen collaboration in the secondary battery materials business with CNGR and has continued discussions since then. Following board approval of the proposal on the 15th to build an LFP cathode material plant through this joint venture, the company completed the contract signing on the 23rd, accelerating its LFP cathode material business.

With the joint venture agreement in place, POSCO Future M will proceed with the construction of an LFP cathode material plant at Pohang’s Yeongil Bay General Industrial Complex 4. The company aims to break ground in 2026 and begin mass production in 2027, with plans to expand its annual capacity to a maximum of 50,000 tons starting with this investment.

While LFP batteries have lower output than ternary batteries, their cost and lifespan advantages have driven increased adoption across various applications, including ESS and entry-level electric vehicles. This agreement enables POSCO Future M to fully launch its LFP cathode material business to respond to rapidly growing market demand and to strengthen collaboration with CNGR and FINO across all business areas, including production, technology, and marketing.

Separately from this agreement, POSCO Future M plans to convert portions of its existing high-nickel product production lines at the Pohang cathode material plant into LFP cathode material production lines to secure early entry into the LFP market, with supply beginning in the second half of 2026.

▲POSCO Future M signed a joint venture agreement (JVA) with CNGR and FINO for LFP cathode materials on the 23rd. (From left: Dong-hwan Kim, CEO of FINO; Tae-il Yoon, Head of POSCO Future M’s Energy Materials Marketing Division; Zhu Zongyuan, Vice President of CNGR; Dai Zhufu, CEO of CNP New Material Technology)

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.

Set to be a game-changer in entry-level and standard EV markets being encroached by LFP… GM and Ford successively announce official adoption of LMR batteries

33% higher energy density compared to LFP provides driving range advantage, with high post-use recycling value expected to rapidly replace the market

Feasible to utilize existing NCM cathode material production facilities, enabling rapid market entry

POSCO Future M has completed the development of LMR (Lithium Manganese Rich) cathode materials, which will serve as a game-changer in the entry-level and standard electric vehicle markets, and is now moving forward with securing mass production technology.

Global automakers have recently been drawing market attention by successively announcing plans to launch electric vehicles equipped with LMR batteries. On the 13th, GM officially announced that it would launch electric vehicles using LMR batteries starting in 2028. Ford also revealed plans for LMR battery commercialization before 2030 and disclosed that it is currently conducting pilot production of second-generation LMR batteries.

LMR batteries are rapidly emerging as next-generation batteries as they can compete on price with LFP batteries that Chinese battery companies are primarily producing while offering superior performance.

LMR batteries can enhance price competitiveness by significantly reducing the expensive use of cobalt and nickel, while increasing the use of inexpensive manganese. Considering that LFP batteries are difficult to recycle, LMR batteries with high lithium recovery rates can have economic advantages as well.

Additionally, they can achieve 33% higher energy density compared to LFP batteries, securing greater capacity, and are expected to rapidly replace LFP market.

Recognizing these advantages, POSCO Future M selected LMR cathode materials as a new flagship product that will be a game-changer in the entry-level and standard electric vehicle markets. The company has been jointly developing commercialization technology with global automakers and battery companies since 2023.

POSCO Future M’s Technology Research Institute consolidated research capabilities with POSCO Holdings’ POSCO N.EX.T Hub, which oversees POSCO Group R&D, and achieved successful pilot production last year through continuous improvements in energy density, charge-discharge performance, and stability. The company plans to secure mass production technology within this year and actively pursue large-scale contract orders.

Recently, the company took a significant step toward mass production readiness by obtaining approval after conducting due diligence in the areas of equipment operation, safety, and the environment, as required for LMR production at the request of customers. POSCO Future M plans to establish mass production capabilities by utilizing existing NCM cathode material production lines without large-scale new investments, enabling timely product supply according to customer requests.

Young-jun Hong, Director of POSCO Future M’s Technology Research Institute, stated, “LMR cathode materials have long been recognized for their potential but faced commercialization difficulties in terms of cycleability, and we have made significant progress through research and development,” adding, “Based on solid trust relationships, we are on the verge of launching products that combine affordable prices with high energy density through collaboration with customers.”

Following this LMR cathode material development, POSCO Future M plans to expand its LMR product portfolio from entry-level and standard to premium and large EV markets by developing next-generation LMR cathode materials with further enhanced energy capacity in collaboration with POSCO Holdings’ POSCO N.EX.T Hub.

▲POSCO Future M researcher is testing the production of LMR cathode material products at Sejong Institute’s pilot plant.