MOU Signed with North Gyeongsang Province
Completion by 2030 and 250 New Jobs Expected
On January 19, North Gyeongsang Province signed a memorandum of understanding (MOU) with Pohang City and CNP New Material Technology Co., Ltd. in the main conference room of Pohang City Hall to establish a lithium iron phosphate (LFP) cathode material manufacturing facility within the Yeongilman 4th General Industrial Complex.
The signing ceremony was attended by Lee Cheolwoo, Governor of North Gyeongsang Province; Lee Kangdeok, Mayor of Pohang; officials from the provincial and city councils; Dai Zhufu, CEO of CNP New Material Technology Co., Ltd.; Eom Gicheon, CEO of POSCO Future M; Kim Donghwan, CEO of Pino Co., Ltd.; as well as representatives from related companies and organizations, totaling around 40 people, who celebrated the attraction of this large-scale secondary battery material investment.
Under this agreement, CNP New Material Technology Co., Ltd. plans to invest 500 billion KRW from 2026 to 2030 to gradually establish energy storage system (ESS) and electric vehicle LFP cathode material manufacturing facilities on a 45,000-square-meter (13,670 pyeong) site within the Yeongilman 4th General Industrial Complex in Pohang. This investment is expected to create approximately 250 new jobs.
The project will be carried out in two phases. Initially, the focus will be on building facilities for producing LFP cathode materials for ESS and electric vehicles. Subsequently, precursor material production will also be pursued in stages according to market conditions and demand.
CNP New Material Technology Co., Ltd. is a company in which global secondary battery material firms Pino and POSCO Future M participate as shareholders. It is recognized for its technological capabilities and business capacity to simultaneously produce NCM (nickel-cobalt-manganese) precursors and LFP cathode materials. Through this investment, the company aims to develop Pohang into a core production base for LFP cathode materials targeting North American and global markets.
Recently, as the secondary battery industry faces a temporary adjustment phase-commonly referred to as the 'chasm'-due to a slowdown in electric vehicle demand, the global battery market is undergoing a structural shift. Demand for energy storage systems (ESS) and affordable electric vehicles is rapidly increasing, centered on LFP batteries, which offer strong price competitiveness and safety.
Within this trend, CNP New Material Technology Co., Ltd.'s investment in LFP cathode materials is seen as a strategic move to proactively respond to market changes. It is expected to complement the existing NCM-focused secondary battery industry structure and serve as a catalyst for Pohang to emerge as a comprehensive battery material hub encompassing both NCM and LFP technologies.
In particular, the synergy with existing core secondary battery companies such as Ecopro and POSCO Future M will further strengthen the full-cycle industrial ecosystem-from materials and processes to exports. This will lay the foundation for Pohang and North Gyeongsang Province to secure global competitiveness in the battery industry as the market recovery phase accelerates following the chasm.
North Gyeongsang Province and Pohang City plan to actively provide administrative and financial support, including assistance with permits for the new factory, infrastructure such as roads, power, and wastewater treatment, to ensure that CNP New Material Technology Co., Ltd.'s investment plan proceeds smoothly following the signing of this MOU.
In particular, they will operate an on-site, rapid administrative support system and a one-stop investment support framework to enable the company to focus on research, development, and production activities, thereby maximizing investment outcomes.
Dai Zhufu, CEO of CNP New Material Technology Co., Ltd., stated, "CNP New Material, which has received investment from leading global secondary battery material companies Pino and POSCO Future M, aims to bring LFP innovation to the domestic secondary battery material ecosystem, which has been centered on NCM. As the global LFP market is growing rapidly, we will do our utmost to ensure that the LFP cathode material plant, which will break ground this May, delivers the highest quality and competitive pricing to meet customer demands."
Governor Lee Cheolwoo of North Gyeongsang Province said, "I sincerely thank CNP New Material Technology Co., Ltd. for placing their trust in North Gyeongsang Province and deciding on this large-scale investment at a time when the global secondary battery industry is undergoing a period of transition. This investment will serve as a pivotal moment for the secondary battery industry in North Gyeongsang Province to move beyond the chasm and enter a new phase of growth."
He added, "North Gyeongsang Province, together with Pohang City, will take full responsibility to ensure that companies investing here are guaranteed success, and we will do our utmost to ensure that the success story of the battery industry that began in North Gyeongsang Province expands into the global market."
Going forward, North Gyeongsang Province plans to strategically foster the secondary battery material, component, and equipment industries centered on Pohang, aiming to establish itself as a global battery industry hub representing the Republic of Korea.
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