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
0mins
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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- Operating Income Pressure: The pre-tax income from continuing operations was 1.11 trillion won, down 11.2% year-over-year, reflecting pressure on core business profitability that may necessitate strategic adjustments to address market challenges.
- Revenue Decrease: Operating income for FY2025 was 1.83 trillion won, a 15.7% decline, suggesting difficulties in sales and market demand that could hinder overall business growth prospects.
- Sales Drop: FY2025 sales totaled 69.09 trillion won, down 5.0% from last year, highlighting intensified market competition and weak demand, which may prompt the company to reassess its market strategies to regain growth.
See More
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- Capital Allocation Strategy: The company emphasizes the importance of capital allocation, aiming to enhance long-term profitability through optimized resource distribution, despite facing short-term revenue challenges.
- Investment Activity: POSCO Holdings acquired a 30% stake in Mineral Resources' Australian lithium unit for $765 million, which not only strengthens its position in the lithium battery materials market but also provides strategic support for the future electric vehicle supply chain.
- Market Rating: Seeking Alpha's Quant Rating highlights POSCO Holdings' market performance, prompting investors to closely monitor its future financial results and strategic adjustments.
See More
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- Estimate Revisions: Over the past three months, EPS estimates have seen no upward revisions and one downward revision, while revenue estimates have faced 18 downward revisions, reflecting market concerns about POSCO's future performance.
- Strategic Partnership: Recently, POSCO acquired a 30% stake in Mineral Resources' Australian lithium unit for $765 million, highlighting its strategic positioning in the lithium battery materials sector to enhance competitiveness in the growing renewable energy market.
See More
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- Robotic System Introduction: The new system will support the production of drive motor cores, expected to improve safety, reduce manual workload, and boost production speed, aiding the manufacturing of critical components for electric and hybrid vehicles.
- International Expansion: The automation rollout will cover plants in Cheonan and Pohang, as well as international facilities in Poland, Mexico, and India, further enhancing POSCO's competitiveness in the global market.
- Technical Integration and Support: POSCO DX will oversee system design and integration to ensure seamless compatibility with existing production lines, while Yaskawa will provide high-precision robots and technical support, facilitating the company's transition to intelligent factories.
See More
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- Operating Expense Improvement: The company also lowered its projected GAAP operating expenses for 2025 by $200 million, demonstrating improved cost control capabilities that lay a solid foundation for future profitability.
- Increased Cash Balance: Moderna anticipates an end-of-year cash balance of approximately $8.1 billion, providing strong support for the company's R&D and market expansion efforts, further solidifying its market position.
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