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Photo courtesy of POSCO Future M |
[Alpha Biz= Kim Jisun] SEOUL, August 11 — POSCO Future M has terminated a KRW 945 billion long-term supply contract for energy storage system (ESS) cathode materials, citing the client’s decision to exit its ESS business.
In a regulatory filing on August 11, the company said the contract, originally signed in August 2022 and set to run until August 2026, was mutually terminated. The initial contract value was approximately KRW 1.051 trillion, of which KRW 106.6 billion had already been fulfilled. The termination amount accounts for roughly 25.5% of POSCO Future M’s consolidated sales in 2024 (approximately KRW 3.7 trillion). Due to confidentiality terms with the counterparty, further details will not be disclosed until August 23, 2025.
POSCO Future M stated that despite the contract’s early termination, it remains committed to pursuing new orders and product development in the growing ESS market. On August 8, the company signed a memorandum of understanding (MOU) at POSCO Center in Seoul with Chinese cathode materials producer CNGR and its Korean subsidiary FINO to jointly advance an LFP (lithium iron phosphate) cathode materials business for ESS applications.
Under the agreement, the three companies will cooperate in building ESS LFP cathode production facilities and conducting joint marketing activities. This partnership builds on an existing joint venture — CNP New Material Technology — established in 2024 following a joint venture agreement between POSCO Future M and CNGR in 2023 to produce precursors. CNGR holds 51% of the JV, FINO 29%, and POSCO Future M 20%. The new MOU expands the JV’s scope from precursor production to include LFP cathode manufacturing.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
