POSCO FUTURE M

POSCO Chemical has set out to expand the cathode production line in Gwangyang plant in response to sharp growth in EV battery market.
POSCO Chemical broke ground for the fourth phase of the cathode factory extension project in Gwangyang city, Jeollanam-do Province on February 23, 2021.
The construction will expand the production capacity of the Gwangyang plant by 30,000 tons, making it capable of producing high-nickel NCMA cathodes* for third-generation EV batteries that have a driving range of over 500 km on a single charge. A total of 275.8 billion won will be spent in the undertaking, and the factory is scheduled to begin operation in 2023.
* NCMA cathodes: Cathodes comprised of nickel, cobalt, manganese, and aluminum
Once the phase four augmentation is complete, POSCO Chemical will further increase the cathode-producing capability to 100,000 tons. 100,000 tons of cathodes can power more than 1.1 million batteries for electric cars, which run on 60Kwh batteries.
Following the construction of the 10,000-ton Gumi cathode plant in 2018, POSCO Chemical built the phase one plant capable of annual production of 5,000-ton high-nickel cathodes in 2019, and phase two 25,000-ton plant in 2020 at Yulchon industrial complex in Gwangyang. The company is currently constructing the phase three 30,000-ton factory slated to start running in November 2022.
Together with the gradual extension of Gwangyang factory, POSCO Chemical will build new plants offshore in regions like Europe and China to ensure the timely supply of essential materials to global battery and automobile giants and help them enhance competitiveness.
The groundbreaking ceremony was attended by POSCO Chemical CEO Min Kyung-zoon, President of Energy Material Jung Dae-heon, Director of Cathode Division Shon Dong-ki, Director of Secondary Cell Material Division Jeong Seok-mo, along with other business partners and employees.
In the congratulatory remarks, POSCO Chemical CEO Min Kyung-zoon said, “This expansion will enable POSCO Chemical to provide a stable supply of high-quality products to customers. We will accelerate investment to create a raw materials value chain, secure technology, and increase our mass production ability to lead the global market with the highest level of business competitiveness.”
Through the acquisition of leadership by preliminary development of next-generation materials and continuous investment for a robust production system, POSCO Chemical plans to augment the production capacity for both cathodes and anodes from the current 40,000 tons to 400,000 tons, and from 44,000 tons to 260,000 tons, respectively, by 2030. In parallel, the company aims to raise the world market share to 20% and sales to over 23 trillion won.

* [Reference]
○ NCMA cathodes: Materials made by adding aluminum to high-nickel NCM (nickel, cobalt, and manganese) that enable the production of high-capacity batteries, which are critical for increasing the driving range of EVs. They also feature high stability and high output at a lower price. The industry expects NCMA cathodes will play a major role in wide adaptation of electric cars when third-generation EVs, which can compete against internal combustion engine cars, become commercialized in 2022.
[Photo]_A groundbreaking ceremony for Phase four construction of Gwangyang cathode plant