Chinese company and Posco Future M collaborate on battery material initiatives, as signified by the MOU agreement they've inked.
Posco Future M and CNGR Advanced Material Form Joint Venture to Produce Lithium Iron Phosphate Battery Cathode Materials
Posco Future M, a battery materials unit of Posco Holdings, has signed a memorandum of understanding (MOU) with China's CNGR Advanced Material and its Korean subsidiary FINO to form a joint venture focused on producing lithium iron phosphate (LFP) battery cathode materials for the energy storage system (ESS) market.
The joint venture, named C&P Advanced Technology JV, will be owned 51% by CNGR, 29% by FINO, and 20% by Posco Future M. The partnership aims to develop and build an LFP cathode material production facility tailored for the ESS market, although specific location, capacity, and timeline are yet to be disclosed.
Posco Future M's current cathode material portfolio includes nickel-cobalt-manganese-aluminum (NCMA) and nickel-cobalt-aluminum (NCA) types for electric vehicles. The company is expanding its supply to LFP and lithium manganese-rich (LMR) cathodes.
LFP batteries are increasingly favored in ESS due to their strong safety, cost efficiency, and long lifespan. Despite having lower output than ternary batteries like NCM, the International Energy Agency noted that LFP batteries are about 30% cheaper than NCM and dominate approximately 80% of global ESS deployments as of 2023.
This partnership allows Posco Future M to diversify its product range and strengthen its position in the global ESS and battery storage markets by leveraging LFP technology. The collaboration reflects the growing importance of LFP chemistry in the ESS industry, driven by cost and safety benefits, and marks a strategic step by Posco Future M to capture a larger share of this expanding market segment.
The partnership between Posco Future M and the Chinese firm focuses on expanding Posco Future M's rechargeable battery cathode material business. CNGR's Korean subsidiary, Fino, is also part of the partnership.
This latest development in the battery materials industry is expected to have a significant impact on the ESS market, as the demand for cost-effective and safe energy storage solutions continues to grow. The proposed facility, if built, will produce LFP cathode materials, further bolstering Posco Future M's commitment to sustainable energy solutions.
This partnership between Posco Future M and CNGR Advanced Material, along with its Korean subsidiary FINO, is aiming to expand the rechargeable battery cathode material business, specifically in the technology sector, focusing on producing lithium iron phosphate (LFP) cathode materials for the business of energy storage systems (ESS).
The development of this joint venture, named C&P Advanced Technology JV, is anticipated to have a substantial influence on the ESS market, as the demand for cost-effective and safe energy storage solutions continues to grow due to the growing importance of LFP chemistry in the ESS industry.
