Posco Future M has broken ground on a dedicated LFP (lithium iron phosphate) cathode materials plant, making a full-scale entry into its materials business for energy storage systems and electric vehicles. CNP New Materials Technology, a joint venture of Posco Future M, Pino and CNGR, said on May 28 it held a safety ceremony at the Yeongil Bay 4th general industrial complex in Pohang and began construction. The plant targets mass production in 2027 and plans to expand capacity in stages to as much as 50,000 tonnes a year.

Posco Future M formalised its entry into the LFP cathode materials business in December last year by signing a joint venture agreement with its partners. With the start of construction of the dedicated plant, it plans to broaden its product portfolio to include LFP, adding to its current mainstay ternary cathode materials such as NCM (nickel cobalt manganese) and NCA (nickel cobalt aluminium).

LFP batteries have lower output than ternary batteries, but are cheaper and have a longer lifespan. Demand for ESS is rising quickly due to growth in power demand driven by the expansion of renewable energy and an increase in AI data centres. Adoption is also expanding in the electric vehicle market, centred on entry-level models.

Posco Future M is converting part of the ternary high-nickel production lines at its Pohang cathode plant into LFP production lines to enter the LFP cathode market early, even before the dedicated plant is completed. It plans to produce prototypes in the second quarter and move to full-scale mass production from the second half of the year. It aims to build a base to supply products to customers before 2027, when the dedicated plant is due to be completed.