Posco Future M and China’s CNGR have signed a memorandum of understanding to collaborate on the production of cathode materials for lithium iron phosphate (LFP) batteries, with an initial focus on the expanding global energy storage systems (ESS) market. The agreement was formalized Friday in Seoul at the Posco Center in Gangnam, where Yoon Tae-il, head of Posco Future M’s energy materials business division; CNGR Vice Chairman Zhu Zongyuan; and Li Bin, CEO of FINO—CNGR’s South Korean subsidiary—participated in the signing ceremony.
Under the MOU, the three companies will work together to establish production facilities and promote LFP cathode materials internationally. The initiative will be led by CNP New Material Technology, a joint venture in which CNGR holds a 51 percent stake, FINO 29 percent and Posco Future M 20 percent. Created in 2024, CNP New Material Technology originally aimed to produce precursors—intermediate materials essential for manufacturing battery cathodes. The JV is now constructing a precursor production plant in Pohang, North Gyeongsang Province, with plans to begin mass production in 2026.
Industry observers note that, despite regulatory challenges, the United States is likely to be a key market for the Korea-China partnership due to its significant growth potential. According to SNE Research, China represented 45 percent of global ESS demand in 2023, followed by North America at 30 percent and 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.” The collaboration reflects both companies’ strategies to secure a stronger position in the rapidly growing ESS sector by leveraging complementary expertise in materials development and production scale-up.
Source: The Korea Herald
