Global collaboration between POSPCO Future M and CNGR China for a worldwide push in Energy Storage Systems (ESS)
Posco Future M, a South Korean materials company, China's CNGR, and its subsidiary FINO have formed a strategic partnership to produce lithium iron phosphate (LFP) cathode materials for energy storage systems (ESS). The partnership, named C&P New Material Technology, was established in 2024 and signed a Memorandum of Understanding (MOU) in August 2025.
The joint venture, with CNGR holding 51%, FINO 29%, and Posco Future M 20%, was initially created for producing precursor materials for battery cathodes. However, it is now expanding to LFP cathode materials production, with a factory under construction in Pohang, South Korea, scheduled to commence series production in 2026.
The collaboration aims to leverage Posco Future M's existing expertise in cathodes for various battery chemistries and diversify its portfolio to better serve the fast-growing ESS segment. The partnership could enhance supply chain stability and capacity for LFP cathode materials, addressing the growing global demand for reliable and cost-effective energy storage solutions.
LFP batteries, known for their cost efficiency, safety, and long lifespan, are increasingly favoured for ESS applications, especially where high output density is less critical but durability and safety are key. According to the International Energy Agency, as of 2023, about 80% of the global ESS market employs LFP batteries, highlighting substantial growth potential for LFP cathode materials.
Posco Future M's engagement in high-density LFP cathodes development aims to produce materials with higher energy density than standard LFP, potentially improving ESS performance and competitiveness. The partnership could also strengthen Posco Future M and its partners’ positions amid accelerating global demand for reliable and cost-effective energy storage solutions.
The official from Posco Future M stated that they remain open to all possibilities, suggesting that the collaboration may expand further in the future. No new information about the stake distribution in the joint venture, the leadership of the project, or the collaboration between the three companies has been provided.
Mass production of these precursors is expected to start in 2026, but no new information about the production of precursors or the expected start date of mass production has been provided. No new production facilities or promotional activities have been announced for the US market, but the US is expected to remain a key market for the Korea-China joint venture due to its growth potential.
The signing took place on Friday in Seoul, with Yoon Tae-il, head of Posco Future M's energy materials business division, CNGR Vice Chairman Zhu Zongyuan, and Li Bin, CEO of FINO, present at the ceremony. The three companies will collaborate to establish production facilities and carry out promotional activities for LFP cathode materials.
As of 2023, China and North America accounted for 45 percent and 30 percent of global ESS demand, respectively. Europe accounted for 12 percent of global ESS demand, indicating a significant market for the partnership. The partnership aims at the fast-growing global ESS market, potentially strengthening Posco Future M and its partners’ positions worldwide.
- This collaboration between Posco Future M, CNGR, and FINO, expanding beyond precursor materials to produce LFP cathode materials, is a strategic move within the technology sector aimed at serving the growing finance need for reliable and cost-effective energy storage solutions in the fast-growing industry of energy storage systems (ESS).
- The expansion of C&P New Material Technology, the joint venture between the three companies, into LFP cathode materials production also represents an opportunity for Posco Future M to leverage its finance resources and technology expertise, thereby diversifying its portfolio and strengthening its position in the global ESS market, particularly in regions like China, North America, and Europe.
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