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POSCO Chemical completes the world’s largest cathode plant
2022.11.10
- Production of high-nickel cathodes to be supplied to global clients for future-generation EVs.
- Step-by-step enlargement process for improved production capacity, product diversification, and quality.
- CEO Min Kyung-joon, “We hope to build growth engines through accelerated global investments based on our Gwangyang cathode plant.”
POSCO Chemical has completed the construction of the world's largest cathode material plant in Gwangyang, which will have an annual production capacity of 90,000 tons. With its full-scale operation, the plant is expected to play a crucial role in laying the groundwork as the company grows as a top-tier battery material producer, acclaimed for its production capacity, product diversification, and high quality products and materials.
The company held a completion ceremony at the newly constructed cathode plant in Gwangyang, South Jeolla Province, on November 10th. Attending the ceremony were approximately 100 officials taking part in the project, including POSCO Chemical CEO Min Kyung-joon, POSCO E&C CEO Han Sung-hee, Director of Gwangyang Bay Area Free Economic Zone Authority Song Sang-rak, and Mayor of Gwangyang Jeong In-hwa.
At the opening of the ceremony, POSCO Chemical CEO Min Kyung-joon remarked, “We have now established a foundation to tackle the rapidly growing market demand with the world’s largest, cutting-edge production base. We anticipate this milestone will help us to accelerate our overseas investment initiatives and continue to secure growth engines.”
The newly constructed cathode factory is expected to boost the annual production capacity from 30,000 tons to 90,000 tons, which is the largest production capacity for a single cathode materials factory. This annual production capacity is equivalent to the amount of cathode materials needed to produce batteries for 1 million high-performance EVs.
The Gwangyang plant will specialize in producing high-nickel NCMA and NCM cathodes* that are to be supplied to global battery makers and automakers. Going forward, the company plans to respond flexibly to changing market demands by introducing a wide range of product lines, including high-nickel single particle cathodes*, NCA cathodes*, and cathodes for ESS (Energy storage Systems).
*High-nickel NCMA and NCM cathodes: material made using nickel (N), cobalt (C ), manganese (M), and aluminum (A), with a high proportion of nickel to increase battery capacity.
*High-nickel single particle cathodes: material with an integrated structure to maximize the proportion of nickel while increasing strength and thermal stability, used in both NCM and NCMA.
*NCA cathodes: material made with nickel, cobalt, and aluminum, with a high proportion of nickel.
The cathode plant was enlarged over the course of four years and three months following a 4-step process, which took into account the condition of the market and the status of contracts, with the first step being breaking ground for a production plant with an annual production capacity of 5,000 tons in August of 2018. The entire area of the site is 165,203㎡, equivalent to 23 soccer fields.
Over the four years, the Gwangyang plant has evolved into a smart factory that enables faster and more efficient production of high-quality products, thanks to POSCO Chemical’s accumulated technological expertise and POSCO Group’s manufacturing, construction, and ICT prowess. Continuous improvement in the process led to a 300% growth in the production capacity per line compared to the initial steps of construction. The plant boasts all-unmanned processes as well as a logistics system that allows raw materials and products to move rapidly at a speed of 5 meters per second by air transport.
Eco-friendly technologies have been applied throughout the entire plant as well. Solar power generation facilities capable of producing 1.3GWh of renewable energy per year were installed on the roof and in the parking lots of the plant, in addition to the implementation of pollutant reduction facilities and recycled use of water, through which the amount of wastewater produced during the production of precursor was cut down by 49% compared to the existing process. Through these initiatives, the company is actively pursuing RE100 and environmental management.
POSCO Group is currently developing a full value chain cluster of battery materials near the Gwangyang plant, where the company hopes to produce raw materials, intermediary materials, and cathodes all in one place. This cluster, which will bring the Group’s material competitiveness into one place, will feature POSCO-Pilbara Lithium Solution, which is responsible for producing 43,000 tons of lithium hydroxide annually, POSCO HY Clean Metal, for extracting lithium, nickel, and cobalt from recycled waste batteries, as well as a precursor plant with an annual capacity of 45,000 tons for the production of intermediary materials.
With the construction of the Gwangyang plant, POSCO Chemical has been able to increase its annual cathode production to 105,000 tons, of which 10,000 comes from its Gumi plant and 5,000 from its joint ZPHE plant in China. The firm is currently in works to secure additional production capacity with the construction of a 60,000-ton Pohang plant, a 30,000-ton ZPHE plant in China, and a 30,000-ton GM joint plant in Canada.
POSCO Chemical, which now owns the world’s largest and best-of-the-industry production base, anticipates accelerating its expansion of global bases in North America, Europe, and China by responding more promptly and flexibly to prospective market changes and customer demands. The Gwangyang plant is expected to act as a role-model as the company seeks to expand its cathode production capacity both at home and abroad to 340,000 tons in 2025 and 610,000 tons in 2030, based on which the company seeks to become a top-tier battery material company with extensive R&D and an unparalleled product portfolio.
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Panoramic view of POSCO Chemical’s cathode plant in Gwangyang with an annual production capacity of 90,000 tons, the largest in the world for a single plant
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(7th from the left) Mayor of Gwangyang Jeong In-hwa, POSCO Chemical CEO Min Kyung-joon, and Director of Gwangyang Bay Area Free Economic Zone Authority Song Sang-rak at the completion ceremony of POSCO Chemical’s Gwangyang cathode plant
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