POSCO Future M eyes lithium manganese-rich cathode biz as growth driver

A Posco Future M official tests the production line of lithium manganese-rich cathode material at the company's pilot plant in Sejong in this handout photo released Tuesday. Courtesy of POSCO Future MA Posco Future M official tests the production line of lithium manganese-rich cathode material at the company's pilot plant in Sejong in this handout photo released Tuesday. Courtesy of POSCO Future M

POSCO Future M will scale up its lithium manganese-rich (LMR) cathode material business for electric vehicle (EV) batteries, in a view that the technology will be “a game changer” for the EV market, the battery materials producer said Tuesday.

According to the company’s revised prospectus, POSCO Future M will secure mass-production technology for LMR cathode materials by the end of this year and will pursue large-scale orders. POSCO Future M submitted the prospectus for its planned rights issuing.

In the prospectus, the company said it will pursue the LMR cathode material business to respond to the growing market share of lithium iron phosphate (LFP) batteries, which are widely used by Chinese manufacturers, noting that LMR cathode materials have advantages in efficiency and price competitiveness compared to LFP materials.

LMR batteries significantly reduce the use of expensive materials like cobalt and nickel by using low-cost manganese. In addition, unlike LFP batteries, which are difficult to recycle, LMR batteries offer a higher lithium recovery rate, enhancing their overall economic viability.

POSCO Future M has selected LMR cathode materials as an alternative for LFP cathode and has been developing it since 2023. It has been testing LMR cathode samples since 2024 and is set to decide its mass production schedule within this year.

According to the company, it recently passed facility inspections requested by clients, covering areas such as operation, safety and environmental standards required for LMR production. The company said it will be able to mass produce LMR cathode by using its existing production facilities.

“Based on a strong relationship of trust with our clients, we are about to launch the product that combines both cost competitiveness and high energy density,” a POSCO Future M official said.

POSCO Future M plans to expand its LMR product portfolio to cover entry-level and standard EVs to premium EVs by developing next-generation LMR cathode materials with higher energy capacity.