POSCO Chemical breaks ground on Phase 3 production line at Gwangyang cathode material plant... Expanding annual cathode material capacity to 70,000 tons

Construction of Next-Generation EV NCMA Product Production Line at Yanggeukjae Gwangyang Plant
Annual Production Capacity Expanded by 30,000 Tons, 70,000 Tons Mass Production System Operational from 2022

[Asia Economy Reporter Hwang Yoon-joo] POSCO Chemical is expanding the production capacity of its cathode material Gwangyang plant in response to the growth of the electric vehicle battery market.

POSCO Chemical announced on the 31st that it has begun construction of the third phase expansion of the cathode material Gwangyang plant in Gwangyang-si, Jeollanam-do. The groundbreaking ceremony was attended by business officials including Son Dong-gi, head of the cathode material division, and was held simply while adhering to COVID-19 prevention guidelines.

The expansion of the cathode material Gwangyang plant is for the construction of a next-generation electric vehicle battery NCMA cathode material production line with a total capacity of 30,000 tons. A total investment of 289.5 billion KRW will be made, with operations targeted for 2022.

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.

Upon completion of the third phase expansion, POSCO Chemical will increase its cathode material production capacity from the current 40,000 tons per year to 70,000 tons. The 70,000 tons of cathode material can be used for approximately 840,000 units of 60 kWh electric vehicle batteries.

Since August 2018, POSCO Chemical has been gradually establishing a high-nickel cathode material plant in the Yulchon Industrial Complex in Gwangyang, covering an area of 165,203 square meters, equivalent to 20 soccer fields.

To respond to the increasing orders in the future, POSCO Chemical plans to secure stable supply capacity through the expansion of the Gwangyang plant and to establish overseas plants to build a global production system, actively responding to the rapidly growing electric vehicle market.

Son Dong-gi, head of the cathode material division at POSCO Chemical, stated, "With the successful construction of the cathode material Gwangyang plant, we will establish a production base for the highest quality next-generation battery materials, securing continuous growth momentum and contributing to enhancing our customers' competitiveness."

POSCO Chemical plans to grow its secondary battery materials business to a global market share of 20% and annual sales exceeding 22 trillion KRW by 2030 through securing technological leadership such as next-generation material pre-development and establishing a mass production system through continuous investment. End. POSCO Chemical is expanding the production capacity of its cathode material Gwangyang plant in response to the growth of the electric vehicle battery market.

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