POSCO Inks MoU With CNGR for LFP Cathode Material Business

POSCO’s PKX subsidiary, POSCO Future M, recently entered into a memorandum of understanding (MoU) with CNGR and its Korean subsidiary, FINO, to expand the previous precursor production agreement to the lithium-iron-phosphate (“LFP”) cathode material business. The three companies will jointly construct the LFP cathode material production facilities. They will also promote the LFP cathode materials’ use in Energy Storage Systems (“ESS”).

POSCO Future M is aiming to position itself in the fast-growing ESS market. According to the International Energy Agency, the global ESS market’s 80% was constituted by LFP batteries as of 2023. LFP batteries are cheaper and have a longer lifespan compared with ternary batteries, such as nickel-cobalt-manganese(“NCM”). With a lower power output, they are ideal for ESS, where space and power needs are less demanding, but durability is crucial.

To expand POSCO’s global presence, it is diversifying the product portfolio. Going beyond high-nickel NCMA and NCA, which are mainly used in premium electric vehicles, the company has developed lithium-manganese-rich (“LMR”) materials for entry-level EVs and is pursuing research and development of high-density LFP cathode materials to improve energy performance, manufacturing capabilities and supply-chain competitiveness at the POSCO Group level.

PKX stock has lost 14.3% over the past year compared with the industry’s 17.4% decline.

PKX’s Zacks Rank & Other Key Picks

PKX currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the Basic Materials space are Agnico Eagle MinesLimited AEM, The Mosaic Company MOS and Carpenter Technology Corporation CRS. While AEM and MOS currently sport a Zacks Rank #1 (Strong Buy) each, CRS carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for AEM’s current-year earnings is pegged at $6.86 per share, implying a 62.17% year-over-year surge. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 10.03%. AEM’s shares have gained 68.9% in the past year.

The Zacks Consensus Estimate for MOS’ 2025 earnings is pegged at $3.17 per share, indicating a rise of 60.10% from year-ago levels. The company’s earnings beat the consensus estimate in one of the trailing four quarters, while missing it in the rest. Its shares have soared 18.3% in the past year.

The Zacks Consensus Estimate for CRS’ current fiscal-year earnings is pegged at $9.36 per share, indicating a 25.13% year-over-year increase.Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 8.38%. CRS’shares have gained 68.5% in the past year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research