Posco Future M is set to challenge China’s dominance in the low-cost battery market by launching mass production of cathode materials for lithium iron phosphate (LFP) batteries, according to President and CEO Eom Gi-chen.
Speaking at a press briefing during InterBattery 2026 in Seoul, which commenced on Wednesday, Eom stated, “The three major Korean battery companies — LG Energy Solution, Samsung SDI and SK On — are all planning to release LFP products within this year.” Eom also holds the newly appointed position of chairman of the Korea Battery Industry Association.
As Korean battery manufacturers increasingly explore the LFP battery segment, currently led by Chinese suppliers, Posco Future M intends to convert an existing nickel-based cathode production line to LFP by July or August. Following approximately three months of certification, the company anticipates commencing the supply of mass-produced materials to domestic battery makers by the year’s end.
The company also announced plans to begin construction this year on a new LFP cathode plant with an annual production capacity of 50,000 tons.
Eom highlighted the potential of next-generation all-solid-state batteries to provide an advantage for the Korean battery industry in the face of growing demand from AI-powered technologies like humanoid robots.
“The technology could allow Korea’s battery industry to surpass China in the future,” he stated.
Eom emphasized Posco Future M’s strategic partnership with US-based all-solid-state battery startup, Factorial Energy, in which the company made an equity investment in January.
Factorial Energy is collaborating with prominent automakers, including Mercedes-Benz, Hyundai Motor Group, and Stellantis, to develop solid-state batteries for electric vehicles.
“According to Factorial’s plan, its solid-state batteries are expected to be installed in supercars produced by one European OEM and one US OEM,” Eom revealed, adding that Posco Future M’s cathode materials are expected to be incorporated into those battery products.
Addressing the intensifying competition from Chinese battery manufacturers, many of whom benefit from substantial government subsidies, Eom urged for increased policy support for Korea’s battery industry.
He noted that Posco Future M received production subsidies last year for its natural graphite business, representing the first instance of such support aimed at stabilizing the graphite supply chain, which is heavily controlled by China.
During a media booth tour, Nam Sang-cheol, head of Posco Future M’s cathode materials research center, shared that the company is developing a novel LFP cathode manufacturing process designed to achieve faster and lower-cost battery production compared to Chinese competitors.
While acknowledging the current cost competitiveness of Chinese LFP materials, Nam expressed optimism that Posco Future M’s approach – utilizing internally sourced precursors – could become competitive upon completion of development. Commercialization is projected for 2028.
Beyond electric vehicles, the company is also targeting emerging sectors such as drones and humanoid robots. Nam mentioned that Factorial Energy is developing batteries for these applications using Posco Future M’s cathode and anode materials, with commercialization also anticipated around 2028.
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