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POSCO Chemical Begins Construction of a Cathode Production Line for Next-Generation EVs in Pohang
2022.04.07
- Held a groundbreaking ceremony for the cathode plant in Pohang on April 7, 2022, with an annual production capacity of 30,000 tons, which is set to double by 2025.
- Will produce Ni-rich NCMA cathode materials for next-generation EVs, and secure technological leadership in materials.
- Will integrate a manufacturing capacity of 160,000 tons in Korea by 2025 for future orders, and secure production sites in North America, China, Europe, and Indonesia.
- POSCO Chemical CEO Min, “We will lead the global market with unrivaled competitiveness in the value chain for the secondary cell materials business.”
- The city of Pohang will position itself as the heart of the battery industry, the only city in the nation that produces both cathodes and anodes with investment from POSCO Chemical.

POSCO Chemical held a groundbreaking ceremony for its Pohang cathode plant on April 7, 2022, and commenced the construction of a high-nickel cathode production line, an essential material in next-generation batteries for electric cars.

Following the construction of the lithium plant in Argentina in March, the POSCO Group has set out to make large-scale investments in the battery materials business, charting a way forward to become a leader of eco-friendly future materials. The group has also expended in the battery materials business as part of its investment by manufacturing both cathode and anode materials in the city of Pohang, the home of the nation’s steel business.

The cathode plant in Pohang will be built in the 4th general industrial complex in Yeongil Bay, Pohang, with a total land area of over 120,000 m2 and an annual production capacity of 30,000 tons with an investment of approximately KRW 290 billion. The group aims to kick off operations in 2024, and the plant is slated to augment the annual manufacturing capacity up to 60,000 tons by 2025 by making an additional investment. This is an amount that can be used in over 600,000 high-performance EVs and is equivalent to KRW 2.5 trillion in annual sales based on today’s standards.

From the Pohang plant, POSCO plans to deliver Ni-rich single-crystal NCMA* cathode materials, which can increase the driving range, the most important factor in next-generation EVs, while simultaneously enhancing safety. Therefore, the cathode manufacturing plant is forecast to play a critical role for POSCO Chemical to secure leadership in next-generation material technology.
*NCMA cathodes: Cathode materials made from nickel, cobalt, manganese, and aluminum.

Ni-rich single-crystal cathodes are materials rich in nickel and can be used to maximize the amount of power a battery can store. They merge multiple raw materials including nickel, cobalt, and manganese into a single crystal to enhance strength and thermal stability.

POSCO Chemical has developed a range of Ni-rich single-crystal cathodes according to orders that have come in from automakers and battery manufacturers aimed at mass-production. The company has completed development of a product with 90% Ni content and is slated to complete the pilot production of a product with 96% Ni content in the latter half of this year.

With the construction of the Pohang plant, POSCO Chemical will integrate its annual cathode production capacity of 160,000 tons in Korea from Pohang, Gwangyang, and Gumi by 2025, and set the foundation for timely responses to the increased number of orders for cathodes used in high-performance EVs.

The company will also secure a total manufacturing capacity of 115,000 tons from plants in North America, China, Europe, and Indonesia, the major EV markets offshore. By 2025, POSCO Chemical will boast a total of 275,000 tons of global manufacturing capacity of cathodes through investments from Korea and abroad, and drive the battery materials market built on production capacity, next-generation materials technology, and the securing of resources.

POSCO Chemical is also focusing on acquiring competitiveness in raw materials. In March, the company decided to build a plant in Gwangyang for precursors—intermediate materials for cathodes—with an annual capacity of 100,000 tons. In 2021, the POSCO Group took over shares of an Australian nickel smelting company, Ravensthorpe Nickel Operation, and launched a recycling business where raw materials are extracted from disposed batteries.

In March, the POSCO Group began construction of a brine lithium plant in Argentina from which they plan to produce 50,000 tons of brine lithium by 2024. The company will also manufacture 43,000 tons of lithium annually from the ore lithium plant by POSCO Lithium Solution. All in all, the group will be equipped with a lithium production capacity of 93,000 tons a year starting in 2024. Once the company starts supplying lithium from these locations, POSCO Chemical will be able to self-supply all the lithium needed in producing cathodes by 2024.

The groundbreaking ceremony for the new plant was attended by about 100 people, including POSCO Chemical CEO Min Kyung-zoon, the governor of North Gyeongsang Province Lee Cheol-woo, Pohang Mayor Lee Kang-deok, and members of the National Assembly Kim Jung-jae and Kim Byung-wook.

POSCO Chemical CEO Min Kyung-zoon said in a commemorative speech, “POSCO Chemical has now secured an unrivaled value chain for its secondary cell materials business, ranging from securing raw materials, including lithium and nickel, in connection with the POSCO Group, to mass-production capabilities. The cathode plant in Pohang where these capabilities are concentrated will become the heart of the battery materials business that will lead the development of the global market and the Korean industry.”

The collaboration between the POSCO Group and the city of Pohang began with the construction of the first artificial graphite anode material plant in Korea by POSCO Chemical in 2021. The teamwork is expected to increase with the construction of the Pohang plant. With the investment from the POSCO Group, Pohang has solidified its position as a leading city of the battery industry being the only city in Korea to produce cathodes and anodes in parallel.
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