POSCO FUTURE M

- Posted KRW 664.6 bn in sales, KRW 25.5 bn in operating profit, and KRW 36 bn in net profit in 1Q 2022.
- Sales for battery materials business rose by 44.1% QoQ and drove growth, while sales for all other business areas increased evenly.
- POSCO Chemical boosted 2030 production capacity goals for cathodes to 610,000 tons and anodes to 320,000 tons.
- The company will launch an NCA and LFP cathode business, targeting more diverse customers with a broader product portfolio.

POSCO Chemical recorded the highest sales for seven consecutive quarters.

This is the result of making a full-fledged investment with a focus on battery materials. POSCO Chemical will also increase production capacity goals for cathodes by 45% and anodes by 23% by 2030 and seek to diversify its product portfolio to include NCA and LFP cathode materials.


■ Marked the highest quarterly sales seven times in a row, driving growth with a 44.1% hike in sales for the battery materials business QoQ.

On April 25, POSCO Chemical announced its robust business performance on a consolidated basis in the first quarter of this year, recording KRW 664.6 billion in sales, KRW 25.5 billion in operating profit and KRW 36 billion in net profit. Sales rose by 23.7%, while the operating profit increased by 24.8%, and net profit soared by 87.4% QoQ.

The remarkable record of breaking the highest sales mark for seven consecutive quarters is attributable to continuous growth after the Gwangyang cathode material plant began operating starting 3Q 2020, and the posting of KRW 151.8 billion in sales in the battery materials business. All business areas showed impressive sales growth, including the lime chemical and refractory business.

Above all, the battery materials business propelled growth recording KRW 317.1 billion in sales, up by 44.1% QoQ. Cathodes posted KRW 272.2 billion in sales, up by 48.1% QoQ as the rise in sales of Ni-rich products for EVs and the increase in raw material price were reflected in the selling price. Anodes also logged KRW 44.9 billion in sales, up by 23.7% QoQ, thanks to the increase in sales for EVs and energy storage systems (ESS).

The lime chemical business reported sales of KRW 197.9 billion, up by 6.6% QoQ, as the hike in raw materials price was reflected in the asking price. The refractory business logged sales of KRW 136.6 billion, up by 13.8% QoQ, from winning more orders in the first quarter.

POSCO Chemical subsidiaries also performed well, with the net profit rising by 87.4% QoQ to KRW 36 billion. PMC Tech, a needle coke producer and a POSCO Chemical subsidiary, recorded sales of KRW 58 billion and an operating profit rate of 17.8% owing to increased sales following the reactivation of electric furnaces in China. A cathode production company in China, ZPHE, also posted sales of KRW 45.7 billion and an operating profit rate of 12.3% thanks to the increased sales of cathode materials.


■ POSCO Chemical is poised to accelerate growth by setting higher goals for cathode production capacity in 2030 and launching its NCA and LFP cathode business.

POSCO Chemical said that the global battery materials market is growing rapidly to a level that far exceeds the expectations with the soaring demand in EVs. They also predict that the market and the product lines will be further diversified according to the differing needs of the customers.

Accordingly, they have decided to expedite business growth and significantly boost their 2030 goals for production capacity of battery materials in order to respond to new orders in the future. Their goals for cathode production will increase by 45% from 420,000 tons to 610,000 tons, and anode production will expand by 23% from 260,000 tons to 320,000 tons. The company is also poised to diversify their product portfolio.

As for cathodes, POSCO Chemical will expand their offerings by launching a Ni-rich NCA* business and LFP* business for affordable EVs. A mass-production system is being built for NCA cathodes with the company being expected to soon begin the LFP business as it has already secured the raw materials and production technology to do so. In addition, POSCO Chemical plans to set up global production locations in North America, Europe, Korea, and China, among others, which are focused on their flagship product, Ni-rich NCM and NCMA cathodes.
* NCM and NCMA cathodes: Ni-rich cathodes made from nickel, cobalt, manganese, and aluminum.
* NCA cathodes: Ni-rich cathodes made using nickel, cobalt, and aluminum.
* LFP cathodes: Lithium iron phosphate cathodes used primarily on low-cost EVs.

Regarding anodes, POSCO Chemical has decided to increase investment mainly on low-expansion anode materials that are developed using natural graphite and the company’s proprietary technology. POSCO Chemical is also expanding investment in the production of artificial graphite anodes in an effort to respond to the trend towards high-performance EVs, while at the same time, maximizing its competitive edge in needle coke raw materials produced by its subsidiary, PMC Tech. The company is also set to start the silicon anode business in full-scale. Silicon anodes are next-generation materials that will be led by silicon oxide (SiOx) and silicon carbide (SiC) products.

In June this year, POSCO Chemical is slated to complete the expansion of its Gwangyang cathode plant by building an additional production line that is set to have a production capacity of 60,000 tons of cathodes. Once the construction is complete, the Gwangyang cathode plant will boast of having the highest production capacity in the world by a single plant, of 90,000 tons. The anode factory in Sejong will follow suit and expand the manufacturing line for low-expansion natural graphite anodes, making it capable of generating additional 15,000 tons of anodes. Overall, POSCO Chemical will be equipped with an annual cathode production capacity of 105,000 tons, and an annual anode production capacity of 84,000 tons.

In this way, POSCO Chemical will have a complete portfolio of both cathode and anode materials for high-end, low-end, and next-generation batteries. Moreover, the company will secure a value chain consisting of essential raw materials including lithium, nickel, graphite, and precursors, and the recycling of used products in collaboration with the POSCO Group, to further enhance its business competitiveness.

• 

•