POSCO Chemical to Establish Cathode Material Plant in Pohang... 130,000 Tons Domestic Mass Production System in 2023

Pohang Plant Annual Capacity 30,000t... Securing 130,000t Domestic Mass Production Capacity in 2023
Producing NCMA Cathode Material with Advantageous Driving Range and Price Competitiveness

[Asia Economy Reporter Hwang Yoon-joo] POSCO Chemical is establishing a cathode material production plant for 3rd generation electric vehicle batteries in Pohang, marking the starting point for the full-scale spread of electric vehicles.

On the 13th, POSCO Chemical's board of directors decided to invest 299.1 billion KRW to build a cathode material plant with an annual capacity of 30,000 tons in the Yeongilman 4 General Industrial Complex in Pohang, Gyeongbuk.

With this investment, POSCO Chemical is accelerating efforts to secure global leadership by expanding supply capacity in the rapidly growing electric vehicle battery market. Once the Pohang cathode material plant is completed in the first half of 2023, the cathode material production capacity will increase from the current 40,000 tons per year to 130,000 tons. The 130,000 tons of cathode material can supply approximately 1.4 million high-performance electric vehicles. POSCO Chemical is investing to secure an annual cathode material production capacity of 420,000 tons domestically and internationally by 2030.

The new plant will produce NCMA cathode materials applied to 3rd generation electric vehicles starting in 2024. POSCO Chemical's NCMA cathode materials increase the nickel (Ni) content, which is closely related to battery energy density, thereby extending driving range, while reducing the expensive cobalt (Co) content, resulting in higher price competitiveness compared to existing NCM cathode materials.

The spread of 3rd generation electric vehicles with a driving range of over 500 km is expected to play a significant role in opening the full-scale electric vehicle era and growing the battery materials market. Preparations for NCMA cathode material production are also underway at the Gwangyang plant, which is currently being expanded.

POSCO Chemical is continuously pursuing investments for local production not only domestically but also overseas. It has decided to enter local markets through joint ventures with major global companies such as GM in the U.S. and Huayou Cobalt in China, and plans to expand production bases to cover the three major global markets including Europe to respond to local demand.

Meanwhile, POSCO Chemical is also promoting the construction of a large-scale cathode material production plant in North America through a joint venture with GM. The joint venture will produce high-nickel cathode materials starting in 2024 and supply them to Ultium Cells, which manufactures GM's electric vehicle batteries. Through this, POSCO Chemical has secured a stable entry into the North American market by partnering with a global automaker, and plans to continuously expand global cathode material production capacity in North America, Europe, and China based on this joint investment.

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