Posted on 19 Aug 2025
South Korea’s battery material producer POSCO Future M has partnered with Shenzhen-listed CNGR to develop a lithium iron phosphate (LFP) cathode material plant, Kallanish learns.
Under an MOU, a new joint venture will be formed, including FINO, the Korean subsidiary of China’s battery materials supplier CNGR. The so-called C&P Advanced Technology JV will be 51% owned by CNGR, 29% by FINO and 20% by POSCO Future M. The deal builds on a joint venture agreement signed in 2023.
The facility will focus on cathode materials for energy storage systems (ESS). However, POSCO didn’t disclose the location, capacity, or timeline for the joint project.
Through this collaboration, POSCO Future M is expanding its product portfolio and diversifying its global customer base in the automotive and battery storage industries. It currently produces nickel-cobalt-manganese-aluminium (NCMA) and nickel-cobalt-aluminium (NCA) cathode materials for premium EVs.
The company has recently completed the development of lithium-manganese-rich (LMR) cathode materials for entry and standard-grade electric cars. The focus since March has been on the commercialisation of high-density LFP cathode materials, boosting density levels already available in the market.
“LFP batteries have a lower output compared to ternary batteries, such as NCM, but offer advantages of low cost and long lifespan,” POSCO says. “Recently, they have been increasingly applied in various fields, including ESS and entry-level electric vehicles.”
The International Energy Agency said in February that LFP batteries are about 30% cheaper than their main competitor: NCM batteries. In 2023, the agency said 80% of all global ESS deployments relied on LFP chemistry.
Source:Kallanish
