POSCO Develops Electric Vehicle Infrastructure in Headquarters... "Battery Material Sales to Double Next Year"

5 Units Installed at Songdo R&D Center... 10 Units at POSCO Center in Seoul
POSCO Chemical Expects Battery Material Sales to Double in 2021

POSCO Chairman Choi Jung-woo is visiting the construction site of the lithium extraction demo plant at the 'Ombre Muerto' salt lake in northwestern Argentina in October last year, inspecting the site.

[Asia Economy Reporter Hwang Yoon-joo] POSCO is establishing electric vehicle infrastructure at its Seoul headquarters and Songdo research and development (R&D) center. This move is interpreted as an effort to expand the group's new growth engine, the secondary battery (electric vehicle battery) materials business, alongside the growth of the electric vehicle market.

According to industry sources on the 8th, POSCO plans to sequentially install five electric vehicle chargers at the Songdo R&D center within this month and ten chargers at the POSCO Center in Seoul in February.

Last year, POSCO reviewed the installation of electric vehicle chargers within its headquarters and held consultations with related companies but postponed the plan due to the minimal electric vehicle traffic among employees and visitors.

POSCO explained, "Recently, domestic electric vehicle sales have surged, and the number of electric vehicles entering the Seoul and Songdo headquarters has increased," adding, "Due to the company's push for the secondary battery business, the need for operation has arisen, and we are resuming installation consultations with companies."

The establishment of electric vehicle infrastructure within POSCO's headquarters aligns with the group's vision to advance as a 'new mobility comprehensive materials company.'

Chairman Choi stated in this year's New Year's address, "The fields we are focusing on, such as secondary battery materials, smart factories, and eco-friendly energy, are expected to be further spotlighted as new growth engines," reaffirming the commitment to nurturing new businesses.

As part of this management policy, POSCO will begin pilot production of lithium, a raw material for cathode materials, at its Australian lithium mine and Argentine salt lake starting this year. Lithium is a key raw material for cathode materials, and POSCO is on the verge of the first commercial lithium production in Korea.

Currently, POSCO Chemical leads the secondary battery materials business. POSCO Chemical produces both cathode and anode materials, which are core components of electric vehicle batteries. Upon completing the expansion of the Gwangyang cathode material plant to a scale of 24,000 tons in March, the cathode material production capacity will increase fivefold from the previous 6,000 tons to 30,000 tons. In 2021, the company completed the expansion of the anode material plant and has been aggressively investing in the secondary battery materials business.

Thanks to the explosive growth of the electric vehicle market and the surge in demand for electric vehicle batteries, POSCO Chemical is reported to have already signed supply contracts with domestic and international battery companies for the expanded production volume. Last year, cathode material sales were estimated at around 140 billion KRW, and with the fivefold increase in production capacity, POSCO Chemical's sales are expected to rise significantly.

A POSCO Chemical official predicted, "Once the cathode material expansion is completed in the first half of this year, sales in the cathode and anode material sectors in 2021 will double to 1.4 trillion KRW."

POSCO aims to intensively nurture the secondary battery materials business and grow it into a business with a 20% global market share and sales of 17 trillion KRW by 2030.

This content was produced with the assistance of AI translation services.