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PKX Advances LFP Cathode Materials Business With New JV

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Key Takeaways

  • POSCO Future M formed a JV with CNGR and FINO to build an LFP cathode materials plant in Pohang.
  • PKX approved construction starting in 2026, targeting mass production in 2027 with capacity up to 50,000 tons.
  • POSCO Future M plans LFP output for ESS and entry-level EVs, converting lines to supply from H2 2026.

POSCO Holdings Inc.’s (PKX - Free Report) POSCO Future M is focusing its push on lithium iron phosphate (LFP) cathode materials after signing a joint venture agreement with CNGR and its Korean subsidiary, FINO. The agreement was signed at FINO’s headquarters in Anyang, Gyeonggi-do, for the LFP cathode material plant construction.

POSCO Future M, in 2024, established CNP New Material Technology in partnership with CNGR and FINO to deepen cooperation in secondary battery materials with CNGR.

The board approved that the partners will proceed with the construction of an LFP cathode material plant at Pohang’s Yeongil Bay General Industrial Complex 4. Construction is scheduled to begin in 2026, with mass production targeted to begin in 2027. Initial capacity is expected to be expanded to an annual output of up to 50,000 tons.

Although LFP batteries offer lower output than ternary batteries, their cost-effectiveness and longer lifespan have driven rapid adoption in ESS and entry-level electric vehicles. POSCO Future M aims to establish a full-fledged LFP cathode material business while strengthening collaboration with CNGR and FINO across production, technology and marketing.

Meanwhile, POSCO Future M plans to convert portions of its existing high-nickel production lines at its Pohang plant to LFP production. This will enable earlier market entry, with supplies planned for the second half of 2026.

PKX’s shares have gained 19.2% over the past year compared with the industry’s 48.2% growth.

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PKX’s Zacks Rank & Key Picks

PKX currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are Agnico Eagle Mines (AEM - Free Report) , Kinross Gold Corporation (KGC - Free Report) and Harmony Gold Mining Company Limited (HMY - Free Report) .

At present, AEM and KGC sport a Zacks Rank #1 (Strong Buy) each, while HMY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AEM’s 2025 earnings is pegged at $7.87 per share, indicating a rise of 86.05%. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.63%. AEM’s shares have gained 114% over the past year.

The Zacks Consensus Estimate for KGC’s 2025 earnings is pinned at $1.68 per share, indicating a 147.06% year-over-year increase. Its shares have surged 192.1% over the past year.

The Zacks Consensus Estimate for HMY’s current fiscal-year earnings is pinned at $2.68 per share, indicating a 111.02% year-over-year increase. HMY’s shares have gained 137.2% over the past year.

 

 


 

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