POSCO Future M LFP cathode market expansion

The global Lithium Iron Phosphate (LFP) cathode market is expanding rapidly, driven by demand from electric vehicles, energy storage systems, and emerging sectors like AI data centers. To compete with dominant Chinese manufacturers, South Korean company POSCO Future M has introduced a strategy to reduce costs and energy consumption through a “precursor-free” manufacturing method. The company aims to begin mass production in Pohang by the fourth quarter of 2026, targeting a capacity of 55,000 tons by 2028.

Building on these production goals, POSCO Future M has entered into a major long-term supply agreement with Samsung SDI valued at approximately 21.25 trillion KRW, extending through 2032. This contract significantly expands previous agreements by including LFP cathode materials alongside Nickel-Cobalt-Aluminum (NCA) materials. The LFP portion of the deal is valued at roughly 6.05 trillion KRW, with supply volumes more than doubling to over 380,000 tons. This partnership is intended to secure a ‘Non-PFE’ (Non-Prohibited Foreign Entity) supply chain to mitigate regulatory risks in markets such as the United States.