Posco Future M, China's CNGR team up for global ESS push
According to Posco Future M on Monday, Yoon Tae-il, head of its energy materials business division; CNGR Vice Chairman Zhu Zongyuan; and Li Bin, CEO of FINO, CNGR's South Korean subsidiary, signed a memorandum of understanding Friday in Seoul. Under the agreement, the three companies will collaborate to establish production facilities and carry out promotional activities for LFP cathode materials.
CNP New Material Technology — a joint venture in which CNGR holds a 51 percent stake, FINO 29 percent and Posco Future M 20 percent — will lead the project.
Established in 2024, the partnership began with the goal of producing precursors, intermediate materials used in manufacturing battery cathodes. It is currently building a precursor production facility in Pohang, North Gyeongsang Province, with mass production slated for 2026.
Industry watchers expect CNP New Material Technology's LFP cathode materials to be aimed at the European market, given regulatory hurdles in the top two markets — the US and China.
China, the world's largest ESS market, is already facing intensifying price competition among domestic players, while North America — the second-largest market — is working to limit Chinese influence in its clean energy sector.
According to market tracker SNE Research, as of 2023, China and North America accounted for 45 percent and 30 percent of global ESS demand, respectively, followed by Europe at 12 percent.
An official from Posco Future M said, 'As we are currently at the MOU stage, it is premature to confirm any details.'
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