POSCO FUTURE M

◈ Construction begins on a new production line for NCMA products used in the next-generation EVs at the Gwangyang cathode plant
◈ Annual production capacity is set to grow by 30,000 tons, and a 70,000-ton production system will be running starting in 2022
◈ Will secure a future-growth engine by investing in next-generation materials and preparing for new orders

POSCO Chemical has set out to increase the production capacity of its Gwangyang cathode production plant in response to the growing EV battery market.

POSCO Chemical began phase 3 construction of the Gwangyang cathode plant in Gwangyang city, Jeollanam-do Province on August 31, 2020. Key figures in the project, including the Director of Cathode Material Business Sohn Dong-ki, were in attendance for the streamlined ceremony, which was conducted in compliance with the government’s distancing rules.

The augmentation of the cathode plant is aimed at building an NCMA cathode production line that is capable of producing 30,000 tons of cathodes for next-generation EV batteries. As much as 289.5 billion won will be invested in the project, which is aimed to begin operation in 2022.

In the new production line, NCMA cathodes are manufactured, which will be used in the third-generation electric car batteries that have a driving range of over 500 km on a single charge.

Once phase three construction is complete, POSCO Chemical will be securing a cathode production capacity of 70,000 tons, a significant increase from the existing 40,000 tons. This is an amount that can be used in more than 840,000 pieces of 60Kwh EV battery.

Since August 2018, POSCO Chemical has been building a high-nickel cathode factory in stages on a 165,203㎡ site, the size of 20 soccer fields, in the Yulchon industrial complex in Gwangyang.

To satisfy future demand, which is expected to continue to grow, POSCO Chemical will secure the ability to provide a stable supply by building new lines, while establishing a global production system by building plants overseas, in preparation for the rapid growth of the EV market.

Sohn Dong-ki, Director of Cathode Material Business at POSCO Chemical said, “The success of the construction project will set a solid foundation for the production of the next-generation battery materials of the highest quality and help us secure the growth engine in the long run, while enhancing the competitiveness of our customers.”

POSCO Chemical plans to achieve a world market share of 20% and annual sales of over 22 trillion won in the secondary cell business by 2030. This will be made possible by securing technical leadership with preemptive development of next-generation materials and building a mass-production system through continued investment.

Attachments
[Photo 1] POSCO Chemical groundbreaking ceremony at Gwangyang cathode plant. Starting in the fourth person from the left, Director of Cathode Material Business Sohn Dong-ki and Director of Facility Investment Kim Kwon turning the first sod.
[Photo 2, 3] A view of the Gwangyang cathode plant