LFP Supply Agreement Announced

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M

Update

August 6, 2026 04:37 PM GMT

POSCO FUTURE M | Asia Pacific

Morgan Stanley & Co. International plc, Seoul Branch+

Chan Park

Equity Analyst

LFP Supply Agreement

Announced

Young Suk Shin

Equity Analyst

Key Takeaways

According to a company press release, PFM reached an agreement to supply

~190kt of US ESS LFP cathodes to a leading KR battery maker over 2027-32.

POSCO FUTURE M (003670.KS, 003670 KP)

A definitive supply contract is expected in 3Q26, and we await greater clarity on

S. Korea Energy & Materials | S. Korea

customer identity pricing, shipment timing, and final contract terms.

Stock Rating

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Shr price, close (Aug 6, 2026)

52-Week Range

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The announced volume implies 32ktpa (or ~50% URR of planned LFP capacity),

with material contribution likely from 2028 given the phased ramp-up.

Our Take: The press release, released after market hours last night, should boost

sentiment for PFM, marking its much-awaited first meaningful supply agreement

and improving visibility on its commercialization strategy (+18.6% in after-market

trading on NXT). More broadly, we see it as incremental evidence that non-PFE LFP

demand in the US ESS market is beginning to materialize. PFM targets an initial

~15kt LFP line conversion by 4Q26, followed by a phased ramp-up of its 50kt JV

from end-2027, implying more meaningful volume and earnings contribution from

2028. Importantly, today's announcement refers to an agreement rather than a

definitive supply contract. We therefore await greater clarity on customer identity,

pricing, and shipment timing. Overall, while the announcement partially addresses

one of our key investment concerns – limited visibility on LFP customer

commitments – we believe execution and contract finalization remain the next key

milestones.

Underweight

In-Line

W96,000

(35)

W147,500

W299,500-114,700

89

W13,120

W16,484

W84

Fiscal Year Ending

12/25 12/26e 12/27e 12/28e

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Prior EPS (W)**

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ModelWare net inc (W

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