POSCO Chemical Expands Cathode Material Production Line to 30,000 Tons

[Asia Economy Reporter Park So-yeon] POSCO Chemical is accelerating its preparation for the future car era by expanding its investment in NCMA cathode materials, the next-generation battery material.

On the 5th, POSCO Chemical held a board meeting and resolved to invest 289.5 billion KRW to expand the NCMA cathode material production line at its Gwangyang plant to an annual capacity of 30,000 tons.

This is for the third phase expansion of the Gwangyang cathode material plant, with construction starting in September and aiming for operation in 2022.

Upon completion of the expansion, POSCO Chemical will increase its cathode material production capacity to 70,000 tons annually, including the existing 40,000 tons. The 70,000 tons of cathode material can be used for approximately 840,000 electric vehicle batteries of 60Kwh capacity.

This investment is intended to seize market opportunities through investment in next-generation battery materials driven by the rapid growth of the global electric vehicle market and the high-performance demands of electric vehicles, and to establish a stable supply base to timely respond to increasing orders from customers.

In particular, the expanded production line is expected to mass-produce NCMA cathode materials used in third-generation electric vehicle batteries capable of driving over 500 km on a single charge.

NCMA cathode materials are manufactured by adding Al (aluminum) to the existing high-nickel NCM (nickel-cobalt-manganese composition) cathode materials. This material enables the realization of large-capacity batteries essential for extending electric vehicle driving range, while enhancing stability and output and reducing costs.

The industry expects that once third-generation electric vehicles are commercialized, they will be able to compete in performance with internal combustion engine vehicles, serving as a catalyst for the popularization of electric vehicles.

Since August 2018, POSCO Chemical has been gradually establishing a high-nickel cathode material plant on a 165,203㎡ site in the Yulchon Industrial Complex in Gwangyang, equivalent to the size of 20 soccer fields. This expansion decision comes three months after the completion of the second phase production line expansion in May.

Going forward, POSCO Chemical plans to actively respond to the rapidly growing electric vehicle market and demand by expanding domestic production capacity to 100,000 tons annually based on order status and establishing a global production system through overseas plant construction.

Min Kyung-jun, CEO of POSCO Chemical, said, "In difficult times, we must lead the market and sustain growth momentum through differentiated technology and proactive investment. We will produce the best products to contribute to the competitiveness of the electric vehicle industry and our customers, and further solidify our position as a leading company in secondary battery materials."

POSCO Chemical aims to achieve a 20% global market share and annual sales exceeding 22 trillion KRW in the secondary battery materials business by 2030 by securing technological leadership through next-generation material pre-development and continuous investment, and establishing a global production system.

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