Business · Companies · 5 hrs ago
Posco Future M to begin LFP cathode shipments in fourth quarter
Posco Future M plans to start shipping LFP battery cathode materials in the fourth quarter after converting an existing production line in Pohang, South Korea.
The company makes materials for batteries, including cathodes, which help store and release energy.
IBK Securities raised its target price from 150,000 won to 170,000 won, while keeping its Trading Buy rating.
The brokerage said Posco Future M’s third-quarter operating profit rose 23.2% from a year earlier to 82.1 billion won, helped by higher cathode sales and customer compensation payments.
IBK expects cathode shipments to rise more than 50% in the fourth quarter, as delayed orders resume and initial LFP supplies begin.
Posco Future M plans to convert more existing lines and use capacity from a joint venture to serve long-term contracts, while its graphite-anode business faces weak near-term profitability.
The company is also developing other battery materials, including products for sodium-ion batteries, and aims to begin production and sales at a Vietnam graphite plant in the second half of 2027.
Posco Future M plans to begin initial production and shipments of lithium iron phosphate (LFP) cathode materials in the fourth quarter.
The company has completed the conversion of an existing ternary-cathode line in Pohang, with capacity of about 20,000 tonnes.
IBK Investment & Securities expects cathode sales volume to rise by more than 50% in the fourth quarter, to 16,000 tonnes.
The brokerage raised its target price for Posco Future M from 150,000 won to 170,000 won and maintained its Trading Buy rating.
- Who
- Posco Future M.
- What
- It plans to start initial production and shipments of LFP cathode materials.
- When
- In the fourth quarter; the year is not stated.
- Where
- At an existing cathode production line in Pohang, South Korea.
- Why
- To expand cathode sales and meet demand, including long-term contracted volumes.
This story does not have two clearly opposing sides.
Posco Future M recorded cathode sales of 4,323 billion won and shipments of 11,000 tonnes, according to the article.
The company plans to begin initial LFP cathode production and shipments.
IBK Investment & Securities forecast Posco Future M revenue of 4.019 trillion won and operating profit of 205 billion won.
- Completed LFP line capacity
- About 20,000 tonnes
- Planned in-house LFP capacity
- Up to 105,000 tonnes
- C&NPI Materials joint venture capacity
- Up to 50,000 tonnes
- Fourth-quarter cathode shipment forecast
- 16,000 tonnes
- IBK target price
- Raised from 150,000 won to 170,000 won
What people are saying
The strategy of expanding the product portfolio to include anodes, all-solid-state batteries and SIB alongside short-term volume growth centered on LFP is becoming more concrete.