What did POSCO Future M agree to supply to a major Korean battery maker?

It agreed to supply more than 190,000 metric tons of lithium iron phosphate cathode materials under a six-year deal. The battery maker was not named because of contractual obligations.

Why is POSCO Future M expanding into LFP cathode materials now?

The company said demand for energy storage systems is surging in North America, driven by the rapid expansion of power-hungry AI data centers. It also said LFP use is growing in ESS and lower-cost electric vehicles because the batteries are cheaper and last longer.

What production plans did POSCO Future M announce for its LFP business?

POSCO Future M said it has converted part of its Pohang cathode material line to produce LFP materials. It is conducting customer certification for prototypes and plans to begin mass production by the end of this year.

POSCO Future M to supply LFP cathode materials to major battery maker

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Summary

POSCO Future M agreed to supply a major Korean battery maker with more than 190,000 metric tons of LFP cathode materials over six years from 2027 to 2032. The company said it is entering the LFP market as demand for ESS rises in North America. It plans to finalize and sign a formal contract in the third quarter.

Key Facts

The long-term deal covers more than 190,000 metric tons of LFP cathode materials from 2027 through 2032.
The battery maker was not named because of contractual obligations.
POSCO Future M said the two companies plan to finalize terms and sign a formal contract in the third quarter.
The company recently converted part of a cathode material production line at its Pohang plant to make LFP materials.
It said customer certification for prototypes is underway and mass production is planned by the end of this year.

By Lee Gyu-lee

Published Aug 6, 2026 7:01 pm KST

POSCO Future M's LFP cathode material plant in Pohang, North Gyeongsang Province / Courtesy of POSCO Future M

POSCO Future M has agreed to supply a major Korean battery maker with a large volume of lithium iron phosphate (LFP) cathode materials under a long-term deal, marking its full-fledged entry into the growing LFP market.

Under the agreement reached Thursday, POSCO Future M will supply more than 190,000 metric tons of LFP cathode materials over six years from 2027 through 2032. It did not disclose the battery maker’s name due to contractual obligations. The two companies plan to finalize the terms and sign a formal contract in the third quarter.

The deal comes as demand for energy storage systems (ESS) is surging in North America, driven by the rapid expansion of power-hungry artificial intelligence data centers.

POSCO Future M plans to improve the cost competitiveness of its LFP cathode materials by using raw materials sourced through POSCO Group, including iron oxide from its steelmaking process and lithium from Argentina.

The company is also in the final stages of negotiations with other major customers for additional LFP cathode material supply deals and plans to expand production capacity as new orders come in.

LFP batteries generally offer lower performance than nickel-based batteries but are cheaper and have longer lifespans. Their use is growing in ESS and more affordable electric vehicles as demand increases for lower-cost battery technologies.

To meet growing demand, POSCO Future M recently converted part of a cathode material production line at its Pohang plant to produce LFP materials. The company is currently conducting customer certification for prototypes and plans to begin mass production by the end of this year.

POSCO Future M is also pursuing supply deals with global battery and automakers as it expands its global production base and responds to trade restrictions in major markets.

In March, the company signed a long-term contract worth about 1 trillion won ($700 million) to supply synthetic graphite anode materials to a global automaker. It is also investing about 357 billion won to build a synthetic graphite plant in Vietnam.

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