POSCO Accelerates Lithium Iron Phosphate Business, Aiming for 50,000 Tonnes by 2027
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 29 2025
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Should l Buy PKX?
Source: NASDAQ.COM
- Market Demand Response: POSCO Future has signed a joint venture agreement with CNGR and FINO to accelerate its lithium iron phosphate (LFP) cathode material business, addressing the rising demand from the energy storage system market, which is expected to significantly enhance the company's market share in this sector.
- Production Plans: The company plans to begin construction of the LFP cathode material plant in Pohang in 2026, with mass production set to start in 2027, targeting an initial capacity expansion to 50,000 tonnes per year, thereby enhancing production capabilities and market competitiveness.
- Technological Collaboration: This partnership is expected to enhance cooperation across production, technology, and marketing, which will improve overall operational efficiency and drive innovation, positioning the company favorably in the rapidly growing lithium battery materials market.
- Production Line Transformation: POSCO also plans to convert part of its existing high-nickel cathode material production lines at its Pohang plant to LFP production lines, with initial LFP supply targeted for the second half of 2026, thereby diversifying its product lines and increasing market adaptability.
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About PKX
Posco Holdings Inc, formerly Posco, is a Korea-based company principally engaged in the manufacture and distribution of steel products. The Company operates its business through four segments. The Steel segment produces and sells steel products such as hot rolled steel, cold rolled steel, stainless steel, among others. The Trading segment engages in the global trade, including the export and import of steel products. The Engineering and Construction (E&C) segment plans, designs and builds industrial plants, civil engineering projects, commercial and residential buildings. The Other segment is engaged in the power plants, information and communication related services and other businesses.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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