POSCO Future M Board Approves 600 Billion KRW Investment in Cathode Materials

Additional High-Nickel Cathode Material Plant in Pohang

POSCO Future M will invest 600 billion KRW to expand its cathode material production capacity by 46,000 tons.

On the 24th, POSCO Future M held a board meeting and approved a plan to invest a total of 614.8 billion KRW by 2025 to build an additional high-nickel NCMA cathode material plant in the Yeongilman 4th General Industrial Complex in Pohang. Construction will begin in the second half of this year and be completed in 2025.

NCMA cathode materials, manufactured using lithium, nickel, cobalt, manganese, and aluminum as raw materials, are produced with a nickel content of over 80%. This increases battery capacity and output while extending lifespan, leading to rapidly growing demand in line with the recent trend toward high-performance electric vehicles.

Currently, POSCO Future M has a total cathode material production capacity of 105,000 tons, including the Gwangyang plant with an annual capacity of 90,000 tons, the Gumi plant with 10,000 tons, and the Zhejiang Zhejianpo plant in China with 5,000 tons. With this new decision, production capacity will increase to a total of 271,000 tons by 2025.

Pohang will transform into a cathode material production complex with a total capacity of 106,000 tons, including the first phase plant with an annual capacity of 30,000 tons scheduled for completion in the second half of this year, the second phase plant with 30,000 tons scheduled to begin construction this month, and the 2-2 phase plant with 46,000 tons approved for investment on the 24th.

POSCO Future M is also constructing joint venture cathode material plants overseas, including a 30,000-ton annual capacity plant with General Motors (GM) in Quebec, Canada, and a 30,000-ton annual capacity plant with Huayou Cobalt in Zhejiang Province, China, building a total of 60,000 tons of production capacity.

A POSCO Future M official stated, "We plan to achieve a global cathode material production system roadmap of 345,000 tons by 2025," adding, "We will secure a leading position in the global market through continuous research and development (R&D) activities and expansion of our product portfolio."

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