Posco Future M has teamed up with China’s CNGR to produce cathode materials for lithium iron phosphate batteries, initially targeting the fast-growing global energy storage systems market.
According to Posco Future M on Monday, Yoon Tae-il, head of its energy materials business division; CNGR Vice Chairman Zhu Zongyuan; and Li Bin, CEO of FINO, CNGR’s South Korean subsidiary, signed a memorandum of understanding Friday in Seoul. Under the agreement, the three companies will collaborate to establish production facilities and carry out promotional activities for LFP cathode materials.
CNP New Material Technology — a joint venture in which CNGR holds a 51 percent stake, FINO 29 percent and Posco Future M 20 percent — will lead the project.
Established in 2024, the partnership began with the goal of producing precursors, intermediate materials used in manufacturing battery cathodes. It is currently building a precursor production facility in Pohang, North Gyeongsang Province, with mass production slated for 2026.
Despite ongoing regulatory hurdles, industry watchers believe the US will remain a key market for the Korea-China joint venture given its growth potential.
According to market tracker SNE Research, as of 2023, China and North America accounted for 45 percent and 30 percent of global ESS demand, respectively, followed by Europe at 12 percent.
An official from Posco Future M said, “As we are currently at the MOU stage, it is too early to confirm any details. We remain open to all possibilities.”
hyejin2@heraldcorp.com
