KB News Desk
Battery materials maker to supply over 190,000 tons through 2032 as North American ESS demand surges
Posco Future M has secured its first major long-term order for lithium iron phosphate cathode materials, agreeing to supply more than 190,000 metric tons to a leading Korean battery maker as North American demand for energy storage systems surges.
The six-year agreement covers deliveries from 2027 through 2032. It follows the company’s decision last year to convert part of the high-nickel cathode materials line at its Pohang plant in North Gyeongsang Province to LFP production.
Posco Future M did not identify the customer. The two companies expect to finalize the contract in the third quarter after the client completes qualification testing of prototype materials. Commercial production is scheduled to begin by the end of this year.
The company is also in the final stages of negotiations with other major customers and plans to expand its LFP cathode materials capacity.
Posco Future M aims to improve cost competitiveness by tapping Posco Group’s integrated supply chain. It plans to use iron oxide generated as a steelmaking by-product in a new production process and source lithium from the group’s brine operations in Argentina.
LFP batteries have lower energy density than higher-end nickel-cobalt-manganese and nickel-cobalt-aluminum batteries but offer advantages in cost, safety and lifespan.
“Demand for LFP batteries is rising rapidly, particularly for ESS applications, as the expansion of AI data centers increases electricity consumption and the need for reliable energy storage,” Posco Future M said. “LFP batteries are also gaining traction in entry-level and mass-market electric vehicles.”
The company is pursuing additional cathode and anode material orders from global battery manufacturers and automakers, positioning its supply chain and technology as tools for navigating tightening trade restrictions.
Earlier this year, Posco Future M signed a 1 trillion won ($699.9 million) long-term agreement to supply artificial graphite anode materials to a global automaker. It is also investing about 357 billion won in a new artificial graphite anode plant in Vietnam.
Separately, CNP New Material Technology, a joint venture between Posco Future M and PENO-CNGR, broke ground on an LFP cathode materials plant in Pohang in May. The facility is scheduled to begin mass production next year and gradually increase annual capacity to 50,000 tons.
