Senior Researcher Park Jae-bum POSCO Research Institute

The Hot Topic of Humanoid Robots! Why Are All-Solid-State Batteries Attracting Attention?

At ‘CES 2026’, held with great enthusiasm earlier this year, the most talked-about topic was humanoid robots. Immediately following the exhibition, interest in humanoid robots surged, leading to a significant rise in the stock prices of robot-related companies. Humanoid robots are designed to perform dangerous or complex tasks in place of humans in workplaces requiring high-intensity labor. Their potential for application across various fields, from daily life to industrial sites, is garnering significant attention.

▲ The ‘next-generation electric Atlas research model’ (left) and ‘next-generation electric Atlas open model’ (right) unveiled at CES 2026. Image source: Hyundai Motor Group]

Another hot topic alongside humanoid robots is the all-solid-state battery. An all-solid-state battery is a next-generation battery that replaces the liquid electrolyte, a core material of lithium-ion batteries, with a solid electrolyte. Thanks to the use of a solid electrolyte, it possesses high safety, and based on this, it allows for the improvement of other materials, enabling an increase in the battery’s energy density. In other words, it is one of the suitable battery candidates that meets the energy density and safety requirements demanded by humanoid robots.

Robots, especially humanoids, have limited space for battery installation. Unlike electric vehicles (EVs), it is difficult to mount a large amount of batteries, which limits battery capacity. Therefore, batteries with high energy density per weight and volume are essential for robots. Additionally, since robots must be able to lift heavy objects and perform quick movements instantaneously, high power output is also expected to be a critical factor in battery performance. While all-solid-state batteries are evaluated as capable of meeting these requirements in the future, they are still in the pre-commercialization stage and are currently very expensive.

However, when looking at the proportion of the battery in the total cost, there is a clear difference between EVs and robots. Unlike EVs, where the battery cost accounts for a relatively high portion, the price proportion of the battery in robots is relatively low. Therefore, even if an all-solid-state battery is installed, the price increase for the robot is smaller than that for an EV. For this reason, humanoid robots are being discussed as a promising initial application field once all-solid-state batteries are commercialized.

Between Expectation and Reality… Barriers That All-Solid-State Batteries Must Overcome

Despite these technical advantages and high market expectations, it is difficult for all-solid-state batteries to lead to immediate commercialization in the short term. Even setting aside the problems to be solved in the mass production process, the barrier of high cost still exists.

Assuming the commercialization price of a humanoid robot is $5,000 per unit, even if the battery is switched from a ternary NCM (nickel, cobalt, manganese) battery to an LFP battery, the price reduction for the robot is only about 1.9%. In other words, because robots use a small amount of batteries per unit, it is difficult to expect the same cost-saving effect as in EVs by using LFP. What if an all-solid-state battery is applied? It is estimated that the robot price would increase by about 14–17%, and the cost proportion of the battery would rise to the 20–24% level.

Although it varies depending on the characteristics and use of the robot, the industry considers a battery cost share of around 10% to be appropriate for humanoid robots. This is because, in addition to the battery—the heart of the humanoid—there are many other necessary parts and modules, such as actuators (joints), grippers (hands), and AI (the brain), making it difficult to allocate a large portion of the cost to the battery. Therefore, even assuming a maximum cost proportion of 15% considering the performance improvement of the robot due to the application of an all-solid-state battery, the price of all-solid-state batteries needs to drop to the $350/kWh level.

Key challenges for the commercialization of all-solid-state batteries

The main reason for the high price of all-solid-state batteries is the lack of a stable mass production system, but the high price of the core material, solid electrolyte, is also a major factor. The cost of the solid electrolyte material alone exceeds the price of a lithium-ion battery. This is because the price of lithium sulfide (Li₂S), the core raw material for solid electrolytes, remains high at about $500/kg, and because they are mainly manufactured in lab or pilot lines, the ‘economies of scale’ effect—where the average price decreases as production volume increases—has not yet occurred. For all-solid-state batteries to secure price competitiveness compared to lithium-ion batteries, the price of solid electrolytes appears to need to drop to the $30/kg level.

For commercialization, technical challenges remain in addition to price. While improving the safety of all-solid-state batteries is possible just by applying the core solid electrolyte material, improving other materials is also necessary to ultimately increase energy density. Furthermore, to improve peak output (lasting from a few seconds to tens of seconds), technical hurdles such as improving ionic conductivity and overcoming interface resistance must be resolved. Currently, major global companies are actively pursuing material-centered R&D to overcome these limitations.

Despite various issues, all-solid-state batteries are still considered a very suitable next-generation battery technology for robots. This is because they are not only safer than LFP batteries but also have significant room for improvement in energy density. This is expected to improve not only the robot’s operating time but also its peak output performance, which lasts from a few seconds to tens of seconds. Ultimately, whether the substantial improvement in robot performance—such as energy density, peak output, and safety—is clearly proven to offset the burden of increased costs due to the application of all-solid-state batteries will be the key criterion for judging future commercialization.

‘Dream Battery’ All-Solid-State Battery, Can It Accelerate the Timing of Commercialization?

All-solid-state batteries have long been called the ‘dream battery’ and have received high expectations in the secondary battery market, but they still face the challenge of securing mass-producibility and price competitiveness similar to that of lithium-ion batteries. Until now, suitable demand sources for all-solid-state batteries have been limited, but recently, the possibility that the market opening time could be advanced, defying previous expectations, has been raised.

① Before Electric Vehicles? The Potential for Robot Market Application

Among domestic battery manufacturers, Samsung SDI has presented a relatively concrete timeline for the mass production of all-solid-state batteries. The company is targeting 2027 for mass production and is reportedly reviewing the potential for application in various new fields, including robotics. If these plans materialize, all-solid-state batteries could be adopted in non-automotive sectors—such as robotics—before they are widely used in electric vehicles. In particular, because the sample testing and certification processes for robots are relatively more flexible than those for EVs, there is significant potential for the market landscape to shift rapidly.

② China’s Announcement of National Standards for All-Solid-State Batteries

Meanwhile, changes in the global policy environment are acting as a catalyst to accelerate the opening of the all-solid-state battery market. The Chinese government recently announced national standards for all-solid-state batteries, establishing clear terminology and a classification system. This is interpreted as a strategic move to secure market leadership, with a focus on next-generation applications such as robots and eVTOLs*. Major Chinese battery firms are accelerating development with a goal of commercialization around 2027; if coupled with government support, the initial cost burden is expected to be partially mitigated. These national standards and policy supports are significant, as they can accelerate market formation regardless of the current level of technical maturity. In response, Korea is also seeking policy measures, such as securing production bases for core materials and expanding R&D support for next-generation batteries.

*eVTOL (Electric Vertical Take-Off and Landing): An aircraft that uses electric power to hover, take off, and land vertically.

③ The Time Until Commercialization: The Importance of a ‘Pivot Strategy’

The price of all-solid-state batteries during the initial mass production and pilot stage in 2027 is estimated at $400–600/kWh, and a transition to full-scale commercial production is likely to occur only after 2030. However, it is expected that all-solid-state batteries will periodically emerge as a key market topic over the next three to four years, with the construction of material supply chains proceeding in parallel. In this rapidly changing environment, experts argue for the necessity of a ‘pivot strategy*.’ This means that rather than simply waiting for the all-solid-state battery market to open, companies must strengthen their existing lithium-ion battery competitiveness while simultaneously preparing to pivot quickly to all-solid-state technology as the market evolves.

*Pivot: A strategy of changing direction or focus while maintaining the existing core business.

POSCO Group Preparing for the Era of All-Solid-State Batteries

POSCO Group has been preemptively conducting research, development, and investment in core materials such as cathode materials for all-solid-state batteries, lithium-metal anodes, and solid electrolytes. To secure competitiveness in the solid electrolyte business, which is the core of all-solid-state batteries, POSCO Group invested a 40% stake in Jeong-Kwan Co., Ltd. in February 2022 to establish POSCO JK Solid Solution. The company is currently operating a pilot plant and is conducting sample tests for global battery companies and OEMs.

In addition, POSCO Group is accelerating the development of next-generation materials—such as solid electrolytes, high-capacity cathodes, and silicon anodes—through strategic partnerships and equity investments in industry leaders like Taiwan’s ProLogium and the U.S.-based Factorial Energy. Furthermore, the group is moving to internalize the production of lithium sulfide, a core raw material for sulfide-based solid electrolytes, to drive down costs and secure a more economical supply chain.

▲ Panoramic view of POSCO Future M’s Pohang cathode material plant.

Recently, POSCO Future M signed an MOU with Factorial, an all-solid-state battery company headquartered in Massachusetts, USA, for the development of all-solid-state battery technology. Through this cooperation, it is expected that POSCO Future M’s material technology and Factorial’s global partnership capabilities will be combined to secure competitiveness in the all-solid-state battery market.

As such, POSCO Group plans to continuously expand its portfolio of core materials for all-solid-state batteries, including cathode materials for all-solid-state batteries, silicon/lithium-metal anode materials, and sulfide-based solid electrolytes, centered on POSCO Future M, which possesses material design and coating technologies.

A combination of POSCO Future M’s anode material technology and Molten’s methane-based graphite production technology expected to strengthen the raw material supply chain and cost competitiveness

Young-jun Hong, Head of the POSCO Future M Technology Research Laboratory: “We will leverage the combined technological strengths of both companies to secure differentiated competitiveness in the global market”

POSCO Future M is embarking on the development of natural graphite anode material from non-mined raw materials, in collaboration with U.S.-based Molten.

On the 11th, POSCO Future M signed a memorandum of understanding (MOU) with Molten at COEX in Seoul for the joint development of natural graphite anode material feedstock using methane gas.

The signing ceremony was attended by Young-jun Hong, Head of the POSCO Future M Technology Research Laboratory; Kevin Bush, Chief Executive Officer (CEO) of Molten; Caleb Boyd, Chief Technology Officer (CTO) of Molten; and executives and employees from both organizations.

Through this agreement, POSCO Future M will combine its anode material technology with Molten’s methane-based graphite production technology to strengthen its anode material feedstock supply chain. Under the planned arrangement, Molten will produce graphite via methane pyrolysis, which POSCO Future M will then process into spherical graphite through its subsidiary FutureGraph before producing natural graphite anode material at its Sejong plant.

Graphite produced from methane gas contains lower levels of metallic impurities than mined graphite, reducing the number of purification steps required and yielding substantial cost savings in the production of natural graphite anode material. In addition, methane pyrolysis generates hydrogen as a co-product alongside graphite, which is expected to create synergies at the POSCO Group level, including potential use of the hydrogen for power generation or as a feedstock for POSCO’s hydrogen-based direct reduction steelmaking operations.

Young-jun Hong, Head of the POSCO Future M Technology Research Laboratory, said, “We have until now relied on graphite mined from conventional sources, but by combining the raw material and advanced materials expertise of both companies, we will secure key feedstock through an entirely new approach.” He added, “We expect this to give us a differentiated competitive edge in the global market through both supply chain diversification and cost reduction.”

Molten is the world’s only company capable of producing graphite via methane pyrolysis, and is headquartered in California.

Separately, POSCO Future M is working to vertically integrate its anode-material feedstock supply chain, drawing on the POSCO Group’s broader capabilities. For natural graphite anode material, the company plans to establish a supply chain in which graphite ore is sourced from Africa and other regions through the POSCO Group and processed into spherical graphite at its subsidiary FutureGraph. For artificial graphite anode material, coal-based and petroleum-based coke derived from coal tar generated in POSCO’s steelmaking process is used as the primary feedstock.

▲ POSCO Future M and Molten signed a memorandum of understanding at COEX in Seoul on the 11th to jointly develop natural graphite anode material feedstock using methane. Pictured from left: Young-jun Hong, Head of the POSCO Future M Technology Research Laboratory; Caleb Boyd, Chief Technology Officer (CTO) of Molten.

Carbon nanomaterial technology to be applied to suppress battery volumetric expansion during charge-discharge cycles, preventing structural deformation and significantly extending battery life

Young-jun Hong, Head of the POSCO Future M Research Institute: “The two companies have agreed to combine their world-class technology leadership to develop advanced battery materials”

POSCO Future M has signed a memorandum of understanding (MOU) with U.S.-based Sila for the joint development of advanced battery materials.

The two companies signed the MOU on the 11th at COEX in Seoul, in a ceremony attended by Young-jun Hong, Head of the POSCO Future M Research Institute, Gleb Yushin, Co-founder and Chief Technology Officer (CTO) of Sila, and executives and employees from both organizations.

Under the MOU, POSCO Future M plans to push advanced battery material technology further by combining the company’s cathode and anode material capabilities with Sila’s silicon anode material technology.

Silicon anode materials offers up to ten times the energy storage capacity of conventional graphite-based anode materials, enabling a significant increase in EV driving range while substantially reducing charging times. By leveraging carbon nanomaterial technology, the two companies expect to address one of the longstanding drawbacks of silicon anode material: the volumetric expansion that occurs during charge-discharge cycles. This approach is anticipated to prevent structural deformation and significantly extend battery life. The companies also agreed to explore the use of POSCO Future M’s carbon material technology to improve the cost competitiveness of silicon anode material, which currently commands a premium price.

Young-jun Hong, Head of the POSCO Future M Research Institute, said, “The two companies have agreed to combine their world-class technology leadership to develop advanced battery materials,” and added, “We will continue to extend the partnership beyond technology development to the supply chain level.”

Sila is a battery materials company headquartered in California that holds proprietary technology for high-performance silicon anode materials. The company works with major automakers and battery manufacturers to increase EV driving range and reduce charging times, and operates a silicon anode material production facility in Moses Lake, Washington.

Meanwhile, POSCO Future M is showcasing the research and development activities of its partner companies, including Sila and Factorial, a collaborator on all-solid-state battery technology, in the Open Innovation zone of its exhibition at InterBattery, which opened on the 11th.

▲POSCO Future M and Sila signed a memorandum of understanding at COEX in Seoul on the 11th, pledging collaboration in the field of advanced battery materials. Pictured from left: Young-jun Hong, Head of the POSCO Future M Research Institute; Gleb Yushin, Co-founder and Chief Technology Officer (CTO) of Sila.

New plant to be established in Vietnam to fulfill orders; phased capacity expansion planned for additional orders

Expanded production capacity and stronger cost competitiveness expected to drive further global order growth

On the 16th, POSCO Future M signed a large-scale, long-term supply agreement with a global automaker to supply artificial graphite anode material.

The contract, valued at approximately KRW 1.0149 trillion, covers five years from 2027 to 2032, with provisions for extension by mutual agreement. The customer’s identity has been withheld until the conclusion of the contract for reasons of business confidentiality.

This is the largest supply agreement POSCO Future M has secured since entering the anode material business in 2011. The company currently supplies anode material to domestic battery manufacturers and companies, including GM, and previously signed a natural graphite anode material supply agreement with a major Japanese battery manufacturer in July 2025, followed by another agreement with a global automaker in October 2025 valued at approximately KRW 670 billion.

Having secured consecutive major anode material orders, POSCO Future M has established a solid foundation for sustained business growth by broadening its customer base and improving profitability.

This agreement complements the natural graphite anode material contract signed in October of last year, and POSCO Future M plans to pursue further collaboration with the same customer, extending into the cathode material and lithium business segments.

To fulfill this order, POSCO Future M has embarked on a phased expansion of its anode material production capacity. On the 5th, the company approved an investment of approximately KRW 357 billion to build a new plant for artificial graphite anode material in Vietnam. With this supply agreement, the company has secured the customer commitment underpinning its Phase 1 investment and plans to proceed with a Phase 2 investment to accommodate additional order volumes.

Building on its Vietnam investment, POSCO Future M is expected to expand its mass-production base to supply cost- and quality-competitive products to customers and continue growing its global order book.

This contract win is a testament to POSCO Future M’s supply chain solutions and technological capabilities, which are fully equipped to navigate trade regulations across major markets — achieved at a time when securing a stable anode material supply chain has become a growing priority for the EV and energy storage system (ESS) industries.

As Korea’s only graphite-based anode material producer, POSCO Future M has been at the forefront of supply chain stabilization for the domestic battery industry, beginning with the localization of natural graphite anode material in 2011 and the completion of its artificial graphite anode material plant in Pohang in 2021, thereby establishing a full-scale mass production system.

The company has also been working toward full vertical integration of its supply chain, spanning raw materials, intermediate inputs, and finished product manufacturing. For artificial graphite anode material, coal-based and petroleum-based coke derived from coal tar generated in POSCO’s steelmaking process serves as the primary feedstock. For natural graphite anode material, the company plans to establish a supply chain in which graphite ore is imported from Africa and other regions through the POSCO Group, with intermediate processing to be carried out at a spherical graphite plant currently being developed at Saemangeum.

POSCO Future M produces both natural and artificial graphite anode materials at scale, tailored to customer requirements, and has built a broad product portfolio by advancing the commercialization of silicon anode material for use in all-solid-state batteries and other next-generation applications. The company has earned broad recognition for its technological strengths through continuous process innovation aimed at improving productivity.

Leveraging these supply chain solutions and technological capabilities, POSCO Future M is currently in supply discussions with numerous customers in Korea, North America, and the EU for both cathode and anode materials. The company is committed to continuously strengthening its business competitiveness and expanding its sales, aiming to go beyond its standing as Korea’s only producer of both cathode and anode materials and emerge as a top-tier global battery materials player.

▲ Production line at POSCO Future M’s artificial graphite anode material plant in Pohang

▲ Production line at POSCO Future M’s artificial graphite anode material plant in Pohang

Company to pursue global orders in earnest, leveraging supply chain competitiveness, product portfolio, and process technology innovation

POSCO Future M is establishing an overseas plant for artificial graphite anode materials as part of its drive to expand global orders.

As trade regulations and protectionism intensify worldwide, the need to stabilize supply chains for key battery materials is becoming increasingly critical. Against this backdrop, POSCO Future M has been in ongoing discussions with multiple customers regarding artificial graphite anode material and is now making a strategic investment to scale up production capacity and strengthen its business competitiveness.

At a board meeting on the 5th, POSCO Future M approved an investment of approximately KRW 357 billion to build a new plant for artificial graphite anode materials in Thai Nguyen, an industrial city in northern Vietnam. Construction is set to begin in the second half of this year, with mass production targeted for 2028. The facility will be built on a site capable of supporting up to 55,000 metric tons of production capacity, with further expansion to proceed in phases as additional orders are secured.

Artificial graphite anode material is a key battery material well-suited to improving fast-charging performance and extending battery life. While demand for the material continues to grow steadily, heavy reliance on a limited number of countries has made supply chain diversification an urgent priority.

POSCO Future M currently operates an artificial graphite anode material plant in Pohang, Gyeongsangbuk-do Province, with an annual production capacity of 8,000 metric tons. Building on the manufacturing expertise gained through domestic operations, the company plans to produce cost-competitive products at its Vietnam facility for supply to global customers.

Vietnam offers significant advantages in reducing costs across investment, electricity, labor, and logistics, with a cost structure that remains competitive even relative to other Southeast Asian countries such as Indonesia. The country also benefits from well-developed industrial infrastructure, including a reliable power grid, and is actively cultivating favorable trade conditions with major markets, including the United States, through its export-driven economic growth strategy.

The United States last year introduced Prohibited Foreign Entity (PFE) requirements under the implementing regulations of the Inflation Reduction Act (IRA), while Europe has established targets under the Critical Raw Materials Act (CRMA) to reduce dependence on specific countries for strategic raw materials, reflecting a broader global push to restructure supply chains.

In response to these market dynamics, POSCO Future M has been working toward full vertical integration of its supply chain across the entire production process for both natural and artificial graphite anode materials — from raw materials and intermediate inputs through to finished products — and is increasingly recognized as a viable alternative for global automakers and battery manufacturers seeking to diversify their supply chains.

POSCO Future M first localized natural graphite anode material production in 2011, and went on to complete its artificial graphite anode material plant in Pohang in 2021, establishing a full-scale mass production system and playing a leading role in advancing supply chain self-sufficiency for Korea’s battery industry. The company has further diversified its anode material portfolio to cover the full product spectrum, expanding capacity for both natural and artificial graphite anode materials while also advancing the commercialization of silicon anode material, and has earned wide recognition for its technological capabilities through continuous process innovation aimed at improving productivity.

Leveraging its supply chain solutions and technological capabilities to navigate trade regulations across major markets, the company is currently in supply discussions with numerous customers in Korea, North America, and the EU for both cathode and anode materials. POSCO Future M is committed to continuously strengthening its business competitiveness and expanding its sales, aiming to go beyond its standing as Korea’s only producer of both cathode and anode materials and emerge as a top-tier global battery materials player.

▲ Production line at POSCO Future M’s artificial graphite anode material plant in Pohang.

Synergistic Benefits Expected from POSCO Future M’s Materials Technology and Factorial’s Network of Automakers in Korea, Europe, and North America

Explosive Growth in All-Solid-State Battery Applications Expected in Next-Generation Mobility as well as Physical AI Markets, including Humanoids

POSCO Future M is investing in Factorial, a US-based all-solid-state battery company, to lead the future battery market.

POSCO Future M signed an investment agreement with Factorial Inc. on January 7th and completed the investment payment on 26th. This further strengthens their partnership, following the MOU signed by the two companies in November of last year for the development of all-solid-state battery technology.

Through this investment, POSCO Future M plans to prepare for the explosive growth of the all-solid-state battery market, while Factorial will secure a stable supply of high-quality all-solid-state battery materials and strengthen its battery manufacturing competitiveness.

Hong Young-Jun, Head of Technology Research Laboratory, stated, “Both companies have developed materials technology through a close and continuous partnership. This further developed partnership will enable us to secure unrivaled competitiveness in line with the rapidly growing all-solid-state battery market.”

Factorial, a leader in the all-solid-state battery industry headquartered in Massachusetts, is pursuing an IPO on the US stock market. In Korea, it operates a pilot plant for all-solid-state batteries in Cheonan, South Chungcheong Province, and is actively expanding its business.

Factorial’s all-solid-state battery platform, Solstice, is known for its superior energy density and safety. Based on this leading technology, it has established partnerships with major automakers in Korea, Europe, and North America. The combination of Factorial’s network competitiveness and POSCO Future M’s materials technology is expected to generate synergy in the future partnership between the two companies.

All-solid-state batteries, which utilize solid electrolytes instead of conventional liquid electrolytes, offer superior energy density and safety, drawing attention as a game changer in the battery market. POSCO Future M has been conducting sample testing of all-solid-state battery cathode materials with Factorial, and among many materials suppliers, POSCO Future M’s materials have been evaluated as superior in terms of quality, including output characteristics.

The all-solid-state battery materials currently being developed by POSCO Future M are expected to find significant applications in next-generation mobility, such as autonomous electric vehicles and urban air mobility (UAM), as well as in physical AI markets, such as humanoids and robotics.

According to global market research firm Statista, the physical AI market is projected to grow from $5 billion (approximately 7 trillion won) in 2020 to $64.3 billion (approximately 94 trillion won) in 2030, at a compound annual growth rate of 23.3%. Morgan Stanley projects the global humanoid market to reach $5 trillion (approximately 7,000 trillion won) by 2050, exceeding the semiconductor market by six times by 2025.

POSCO Future M possesses material design and coating technologies optimized for all-solid-state batteries. As part of the POSCO Group, the company is continuously expanding its portfolio of all-solid-state battery materials, including sulfide-based solid electrolytes and silicon and lithium metal anode materials with superior energy storage capacity.

▲ An employee at POSCO Future M’s Technology Research Laboratory in Sejong operates pilot equipment for cathode material trial production.

▲ Aerial view of POSCO Future M’s Pohang cathode material plant

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)

In sample testing of materials from multiple suppliers, POSCO Future M demonstrated good rate capability.

Synergy expected between POSCO Future M’s competitiveness in cathode/anode materials and Factorial’s battery cell technology

POSCO Future M, a leading battery materials supplier, and Factorial Inc. (Factorial), a leader in solid-state battery technology, signed a Memorandum of Understanding (MOU, for the development of all-solid-state battery technology.

The MOU signing ceremony which took place on November 25 at the Future Battery Forum in Berlin, was attended by POSCO Future M Head of Technology Research Laboratory Hong Young-Jun and Factorial CEO Siyu Huang, along with executives from both companies.

Under the MOU, the two companies plan to explore cooperation in developing materials for all-solid-state batteries, which are powering progress in next-generation industries such as electric vehicles, robotics, energy storage systems and more. All-solid-state batteries use solid electrolytes instead of liquid between the cathode and anode, offering higher safety, superior energy density, and excellent charging performance compared to conventional lithium-ion batteries.

Factorial decided to sign the MOU after testing cathode material samples for all-solid-state batteries and concluding that POSCO Future M’s materials demonstrated good rate capability.

Through this MOU, POSCO Future M aims to further strengthen its competitiveness in the all-solid-state battery materials business. The company is currently conducting R&D on cathode materials for all-solid-state batteries, and silicon anode materials.

POSCO Future M Head of Technology Research Laboratory Hong Young-Jun said, “We expect synergy in the next-generation all-solid-state battery business based on Factorial’s battery technology and market presence with global automakers, and POSCO Future M’s competitiveness in cathode and anode materials.”

“Solid-state batteries are entering a new era of commercial readiness,” said Siyu Huang, CEO of Factorial. “We expect work with POSCO Future M to not only accelerate innovation in critical cathode and anode materials, but also strengthen a resilient global supply chain and drive meaningful cost reductions at scale.”

Factorial, headquartered in Massachusetts, USA, has a global footprint with pilot manufacturing operations in Cheonan, Chungnam, South Korea.

Meanwhile, POSCO Future M plans to build a product portfolio of cathode and anode materials covering entry-level, standard, and premium electric vehicles through continuous R&D, preparing to supply customized products to customers. The company will also actively pursue the development of next-generation materials to lead the future mobility industry, while the POSCO Group is also continuing R&D on lithium metal anode materials and sulfide-based solid electrolytes.

▲ POSCO Future M signed an MOU with U.S. all-solid-state battery company Factorial Energy to develop all-solid-state battery technology at the Future Battery Forum held in Berlin, Germany on the 25th of last month. (From left, Hong Young-jun, head of POSCO Future M Technology Research Institute, and Siyu Huang, CEO of Factorial Energy).

Jeong-hu Hong, Lead Researcher Today, secondary battery materials are drawing attention as key drivers of future industries such as electric vehicles and energy storage systems. Among them, cathode materials are especially important, accounting for more than 35% of the total cost of the four major battery components—cathode, anode, electrolyte, and separator. This is because cathode materials determine not only a battery’s capacity and output but also its ability to store and release electrical energy.
At the Cathode Material Development Group, POSCO Future M Technology Research Institute, we conduct research on cathode materials, the core of EV batteries, and develop new technologies to bring them into commercial use.

Do-hyeop Park, Principal Researcher Cathode materials can be simply defined as a “source of lithium.” They are produced by combining lithium with precursors made of various metals such as cobalt, manganese, and nickel. The battery’s name, performance, and stability all depend on which metals are used. Batteries such as Lithium Cobalt Oxide (LCO), Nickel Cobalt Manganese (NCM), Lithium Iron Phosphate (LFP), and Lithium Manganese Rich (LMR), among many others using different metal combinations, are currently being developed. Our team, in particular, focuses on the development of LMR cathode materials. Recently, General Motors (GM) and Ford announced plans to launch electric vehicles using LMR batteries in 2028 and 2030, respectively, drawing significant attention to LMR in the global automotive market. Our team is fully committed to advancing LMR batteries, which are poised to become game-changers in the electric vehicle industry.

Gwang-eun Jeong, Principal Researcher Among the lithium-ion batteries currently used in electric vehicles, LFP batteries are the most widely adopted. These batteries are predominantly developed technologically by China. While these are highly stable and cost-effective, their energy density is somewhat limited. For instance, at -10°C, their performance drops to only 60–70% of full capacity. To overcome these limitations, a newly developed LMR battery has been introduced. LMR batteries significantly reduce the use of costly cobalt and nickel, while increasing the proportion of more affordable manganese. With higher energy density than LFP, they enable greater battery capacity and performance, significantly extending the driving range of electric vehicles. Moreover, unlike LFP batteries, which are difficult to recycle, LMR batteries offer superior recyclability and high lithium recovery rates.

Jeong-hu Hong, Lead Researcher The LMR battery demonstrates outstanding competitiveness not only in terms of cost and performance but also in sustainability. Of course, despite its many advantages, there are challenges that must be addressed before mass production can be realized. To prevent performance degradation, various technological advancements are required, including maintaining stable average voltages and developing surface coating techniques for cathode materials to suppress unnecessary gas generation. In China, a large-scale LFP mass production system is already in place, making a swift transition to LMR production challenging. As a result, innovative research and development are even more crucial. Our team, after an intricate R&D process, has successfully completed the development of LMR cathode materials and is now focusing on establishing techniques for mass production.

Do-hyeop Park, Principal Researcher We divided the R&D process into laboratory and pilot production stages. In the laboratory stage, we rapidly and accurately explored the basic characteristics and optimal combinations of cathode materials under specific process conditions. Through creativity and experimentation, we successfully identified the best material combinations, reducing costs while enhancing the performance of LMR cathode materials.

Ju-hyeon Yang, Principal Researcher As Do-hyeop Park mentioned, cathode production involves a calcination process, where various metal precursors such as nickel, cobalt, manganese, and aluminum are combined with lithium sources at high temperatures. During this process, we selected a variety of precursor candidates, evaluated their key physical properties, and identified the most promising materials for experimental application. By applying accumulated technical knowledge and analyzing the effects of variables throughout the development process, we successfully optimized LMR cathode materials, evaluating their initial battery capacities and lifespans. Through continuous refinement of material design, process conditions, and experimental testing, we were also able to assess the feasibility of mass production.

Jin-eun Kim, Principal Researcher This is not the end. Even if promising results are achieved in the laboratory, the performance of the developed cathode material may not be fully realized under conditions similar to those of mass production. Therefore, during the pilot stage, we adjusted loading amounts, production volumes, and sintering furnace conditions on lines that closely resemble actual mass production, repeatedly experimenting to identify the optimal production conditions.

Ji-su Kim, Principal Researcher In the laboratory stage, cathode materials can be sintered in quantities of 100 to 200 grams; however, customers occasionally request samples ranging from kilograms to tons. This means that during the pilot stage, cathode materials must be produced stably at the same performance level as those from the laboratory to allow customers to properly verify mass production feasibility. From our perspective, securing the optimal conditions for cathode material production made this stage particularly important.

Jeong-hu Hong, Lead Researcher Together with our team members, we conducted full-scale R&D to enhance the safety of the LMR process. Pilot lines require meticulous adjustment of conditions, as even slight process changes can significantly impact cathode performance. By repeatedly verifying various conditions and applying laboratory-designed firing processes to actual equipment, we achieved stable pilot production of cathodes with performance comparable to that secured in the laboratory, passing customer evaluations and finalizing the technology. Thanks to this work, we were able to secure optimal pre-mass production conditions and improve economic efficiency.

Gwang-eun Jeong, Principal Researcher I remember being quite flustered when we received a request from a customer to deliver pilot samples within just ten days. We had to simultaneously respond to the customer and optimize the material. In that situation, I decided to stay calm and divide roles among the team: I communicated with the customer to gather requirements, while Do-hyeop Park focused on optimizing experimental conditions. Thanks to everyone diligently working in their respective roles, we successfully met the customer’s requested delivery date and ensured proper material quality.

Do-hyeop Park, Principal Researcher At that time, with very little time remaining until the pilot sample delivery, it was challenging not only to produce samples but also to refine the material simultaneously. That’s when Gwang-eun Jeong, our team’s “maestro,” who perfectly coordinates our efforts, efficiently allocated roles. Thanks to this, we managed to produce the samples on time without any issues. It would have been impossible to accomplish this alone.

Jin-eun Kim, Principal Researcher There were moments during the pilot phase when performance fell short of expectations. Although the goals had been achieved in the lab, results in the pilot phase differed significantly, which was perplexing. We then collaborated to meticulously review each process step by step to identify the cause. By theoretically analyzing with Jeong-hu Hong and conducting repeated experiments with adjusted mixing times and sequences, we observed remarkable improvements in performance!

Jeong-hu Hong, Lead Researcher Currently, the global battery market’s core materials and component supply chains remain heavily concentrated in China, making the establishment of independent supply chains a critical task. Our foremost goal is to successfully commercialize LMR batteries with a stable supply chain and robust technical expertise. Moving forward, we plan to actively pursue research and development to create better batteries across multiple aspects, including enhancing material stability, securing cost competitiveness, and improving charge/discharge performance. To achieve this, I will collaborate closely with relevant departments such as production, quality, and sales. Ultimately, our team aims to join forces to successfully mass-produce LMR, a next-generation battery material, and become a future growth engine for the POSCO Group!

Plans to install solar panels with an annual capacity of 2.8 GWh for renewable energy production… Expected to reduce carbon emissions by approximately 1,300 tons annually

POSCO Future M is moving forward with expanding its use of renewable energy.

On the 18th, POSCO Future M signed a contract with SK Innovation E&S to advance a solar power generation project.

Under this agreement, SK Innovation E&S will install 2.5 MW of solar panels on POSCO Future M’s factory rooftops and parking lots, generating 2.8 GWh of renewable energy annually. In return, POSCO Future M will purchase the electricity for its plant operations. This initiative is anticipated to reduce approximately 1,300 tons of annual carbon emission.

Through this business collaboration, POSCO Future M plans to secure competitively priced power while advancing another step toward its renewable energy transition goals.

The two companies have agreed to explore various business opportunities for a sustainable future, beginning with this renewable energy collaboration.

POSCO Future M has been continuously expanding its use of renewable energy to achieve carbon neutrality by 2050. The company completed a 209 MWh annual capacity solar facility at its Sejong anode material plant in 2021 and, last year, partnered with POSCO International to advance a 2.6 GWh annual capacity solar power project at its Gwangyang cathode material plant.

Moving forward, POSCO Future M plans to additional solar power facilities, including the dedicated Gwangyang NCA cathode material plant, and to diversify its renewable energy procurement methods through power purchase agreements (PPAs) and the purchase of Renewable Energy Certificates (RECs).

▲ Solar power generation facility completed by POSCO Future M on the rooftop of its Gwangyang cathode material plant in 2024.