POSCO Chemical begins construction of a new battery cathode material plant

Source: POSCO

POSCO Chemical announced on the 31st August that it has begun construction of the third phase expansion of the battery cathode material Gwangyang plant. It is 30,000 tons per year. By adding the existing factory, the cathode material production capacity will increase to 70,000 tons per year.

The cathode materials to be produced are nickel, cobalt, manganese, and aluminum (NCMA). NCMA is characterized by increasing the energy density and reducing cobalt by increasing the specific gravity of nickel to 85-90%. This is the first time POSCO Chemical has produced NCMA. Previously, only nickel, cobalt, and manganese (NCM) were produced.

If the Gwangyang plant is expanded, it will be possible to make a cathode material that can be used for 840,000 electric vehicle (EV) batteries of 60 kilowatt hours (KWh). Since August 2018, POSCO Chemical has been building a high-nickel cathode material plant in stages in the Yulchon Industrial Complex in Gwangyang with an area of ​​165,03㎡, the size of 20 soccer fields.

The plant to be expanded is aimed at operating in 2022. POSCO Chemical plans to invest 2895 billion won in this expansion. Son Dong-gi, head of POSCO Chemical’s cathode material division, said, “Through the successful construction of the cathode material Gwangyang plant, we will secure sustainable growth engines and contribute to securing customer competitiveness by laying the foundation for the production of the highest quality next-generation battery materials.”

POSCO Chemical is planning to grow the battery material business to 20% of the global market share and more than 22 trillion won in annual sales by 2030 by securing technological leadership such as advanced development of next-generation materials and establishing a mass production system through continuous investment.