Posco Future M is experiencing a surge in stock prices following news of a long-term supply agreement for lithium iron phosphate (LFP) cathodes with domestic battery manufacturers. The announcement of a large-scale supply plan to meet the growing demand in the North American energy storage system (ESS) market has also led to increased buying interest in related secondary battery stocks.
As of 9:36 a.m. on the Korea Exchange, Posco Future M shares were trading at 157,300 won, up 9,800 won (6.64%) from the previous trading day.
The rise in stock prices is attributed to Posco Future M's announcement that it plans to formalize a long-term supply contract with a domestic battery company in the third quarter.
Posco Future M explained that this contract aims to proactively respond to the surging demand for ESS in North America, with plans to supply over 190,000 tons of LFP cathodes from next year through 2032. However, the names of the client companies have not been disclosed.
LFP batteries, while offering slightly lower output compared to nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminum (NCA) batteries, are known for their cost competitiveness and long lifespan. Their usage has been increasing in various fields, including ESS and electric vehicles.
Meanwhile, the news of Posco Future M's large-scale supply agreement has also positively impacted other secondary battery stocks. At the same time, Samsung SDI shares rose by 6.56%, SK Innovation by 4.14%, and LG Energy Solution by 3.33%. In the KOSDAQ market, leading secondary battery stocks such as EcoPro (up 3.47%) and EcoPro BM (up 3.41%) also showed gains.
* This article has been translated by AI.
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