POSCO Future M has signed a memorandum of understanding (MOU) with Chinese precursor producer CNGR and its Korean subsidiary FINO Inc. to expand LFP cathode production capacity.
The agreement, announced at the POSCO Center in Seoul, signals a shift toward ESS-focused materials manufacturing alongside the companies’ existing work in electric vehicle battery chemistries.
The deal builds on the 2023 joint venture between POSCO Future M and CNGR, which led to the formation of C&P New Material Technology in 2024 for precursor production. Under the new MOU, the partnership will extend into LFP cathode materials for ESS, with plans to establish dedicated manufacturing facilities and develop joint marketing strategies. LFP batteries, while less energy-dense than nickel-rich chemistries such as NCM and NCMA, are well-suited for stationary storage where operational lifespan, cost efficiency, and thermal stability outweigh volumetric energy considerations. For ESS operators, these attributes translate into lower levelized cost of storage and reduced replacement cycles—factors increasingly critical as grid-scale deployments scale up in Asia, Europe, and North America.
POSCO Future M’s move to diversify beyond its traditional high-performance cathode portfolio, including NCMA and NCA for premium EVs, reflects broader industry trends toward chemistry diversification. In the first half of 2024, the company completed development of lithium manganese-rich (LMR) cathode materials for standard-grade EVs and initiated joint R&D with POSCO Holdings’ Future Technology Research Institute to commercialize high-density LFP products. If successful, higher-density LFP cathodes could narrow the performance gap with NCM while maintaining cost and safety advantages—potentially widening their application from ESS into more EV segments.
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