Posco Future M, CNGR eye setting up joint LFP plant

About this update from Posco Future M Co., Ltd.

Posco Future M Co. (Gyeongsang, South Korea) and CNGR Advanced Material Co. (Tongren, China) are considering the establishment of a lithium-phosphate-iron (LFP) cathode materials plant for energy storage systems, Posco Future M said Aug. 11.Both companies, along with Fino, a Posco Future M subsidiary, signed a memorandum of understanding on Aug. 8 to cooperate on various measures.The MOU follows an agreement that Posco Holdings, Posco Future M and CNGR signed in 2023 to set up joint-venture nickel and precursor plants at Pohang, which resulted in the establishment of CNP Advanced Materials Technology in 2024.”This MOU will expand the scope of cooperation beyond precursor production within the existing joint venture, CNP Advanced Materials Technology, to include LFP cathode materials, and the company plans to expedite its business review,” POSCO Future M said.”Although LFP batteries have lower output than ternary batteries such as NCM (nickel, cobalt, manganese), they are being increasingly utilized in various fields such as ESS and entry-level electric vehicles due to their low price and long lifespan.”LFP materials have gained a dominant position in energy transition due to their outstanding safety performance, long cycle life, and cost advantages. China’s LFP materials output totaled 2.38 million metric tons in 2024, marking a 50% year-over-year increase, according to statistics from ICC Consulting, a Chinese research agency.As a global leading producer of precursors, CNGR has enhanced its R&D, and innovation capabilities, and has actively expanded into integrated iron phosphate production projects, keeping pace with market trends. The company has an established iron-phosphate production capacity of nearly 200,000 metric tons per year and has built or is constructing LFP cathode material capacity of 50,000 metric tons per year, CNGR said in June.Platts, part of S&P Global Commodity Insights, assessed ex-works China calculations for LFP cathode active material at $4,299/metric ton on Aug. 8, up $247/metric ton from a month earlier, driven by a recent rebound in lithium chemicals prices.Currently, Posco Future M primarily produces high-nickel NCMA (nickel, cobalt, manganese, aluminum) and NCA (nickel, cobalt, aluminum) cathodes for electric vehicles, and is diversifying its cathode materials portfolio to include LFP and LMR (lithium manganese-rich) batter...

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