POSCO Future M and CNGR collaborate on the production of Lithium Ferro Phosphate (LFP) cathode materials for electric vehicle batteries.
The chemical and battery material industries are joining forces with a new joint venture named C&P Advanced Technology JV. This collaboration is between South Korea's Posco Future M, China's CNGR, and CNGR's Korean subsidiary FINO [1][2][3].
The joint venture's focus is on the production of cathode materials for lithium iron phosphate (LFP) batteries, a choice driven by LFP's advantages of lower cost and longer lifespan compared to ternary cathodes [1][3]. The factory for this venture is currently under construction in Pohang, North Gyeongsang Province, South Korea [2].
Series production at the Pohang factory is planned to begin in 2026 [2]. The collaboration extends from precursor material production (through an earlier joint venture called CNPS Technology) to expanding into LFP cathode materials for energy storage systems (ESS) and potentially entry-level electric vehicles [3].
However, as of August 2025, no detailed public disclosure has been made regarding the specific production capacity or exact timeline milestones beyond the 2026 start date for production [1][2].
Posco Future M is expanding its product portfolio from nickel-rich cathode materials to include LFP cathodes, aiming to diversify global customers in both the automotive and ESS sectors [1][3]. This strategic move responds to growing ESS demand globally, where LFP batteries accounted for about 80% of deployments as of 2023 according to the International Energy Agency [1][3].
The joint venture, C&P New Material Technology, was established in 2024, and in addition to the production focus, the companies also plan joint marketing activities [1][2]. This collaboration is a significant step towards advancing the production of LFP battery cathode materials and serving the growing ESS market.
The joint venture, C&P New Material Technology, is not limited to the production of cathode materials; it also plans joint marketing activities in the technology sector. The formation of this joint venture coincides with Posco Future M's expansion into the finance industry, as they venture into LFP cathode materials for energy storage systems and potentially entry-level electric vehicles.
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