POSCO's PKX Expands Into LFP Battery Materials Through Strategic Partnership

2026-01-12 18:42:46

POSCO Holdings’ PKX has accelerated its entry into the lithium iron phosphate (LFP) cathode materials sector through a newly signed joint venture framework with CNGR and its Korean affiliate FINO. The partnership, formalized at FINO’s facility in Anyang, South Korea, marks a significant milestone in the company’s battery materials diversification strategy.

Partnership Details and Production Roadmap

The collaboration builds on POSCO Future M’s 2024 establishment of CNP New Material Technology, a joint entity created with CNGR and FINO to expand capabilities in secondary battery materials. Under the new agreement, the consortium will construct a dedicated LFP cathode production facility at Pohang’s Yeongil Bay General Industrial Complex.

The venture follows a measured timeline: construction launch is targeted for 2026, with commercial-scale production commencing in 2027. The facility is engineered for significant scaling, with planned capacity ultimately reaching 50,000 tons annually.

Near-Term Production Strategy

Recognizing the market opportunity, POSCO Future M is taking an immediate approach by converting portions of its existing high-nickel production infrastructure at the Pohang complex toward LFP output. This parallel strategy enables faster market penetration, with initial supplies expected as early as the second half of 2026—ahead of the dedicated facility’s full operation.

Market Positioning in LFP Adoption

LFP technology has gained considerable momentum despite lower energy density compared to ternary chemistries. The appeal lies in superior cost-efficiency, extended cycle life, and enhanced safety—factors driving rapid adoption in energy storage systems (ESS) and mass-market electric vehicles.

PKX’s stock performance reflects market confidence in the sector, with shares appreciating 19.2% annually as the broader industry expanded 48.2%. By establishing comprehensive LFP cathode capabilities and deepening collaborative ties with CNGR and FINO across manufacturing, innovation, and market development, POSCO is positioning itself to capture growing demand in this segment.

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