Posco Chemical builds 4th plant on cathode materials to raise capacity to 100,000 tons

[Photo provided by Posco Chemical Co.]

Posco Chemical Co., a refractory and secondary battery materials making unit of South Korean steel giant Posco, will invest 275.8 billion won ($248.71 million) to build a fourth plant on cathode materials to meet with explosive demand for electric vehicle (EV) batteries.

The spending will go to expand battery cathode plant in Gwangyang, South Jeolla Province, the company announced on Tuesday. Grounds were broken on the same day for the expansion to be ready for operation in 2023.

The fourth plant will raise the company’s cathodes production capacity to 100,000 tons per year. The company will be mainly adding manufacturing lines for high-nickel NCMA cathodes that go into batteries powering 311 miles of range on a single charge. NCMA cathodes, laid on top of nickel-rich NCM cathode materials, can enhance battery stability and output at lower costs.

Posco Chemical has been active in expansion of EV battery operation. Its Gwangyang facility capacity was raised to 25,000 tons last year, added to the first-stage 5,000-ton capacity. Another 30,000-ton capacity is under construction for operation in November next year.

The annual capacity of 100,000 tons ready by 2023 can go into 1.1 million 60 kwh mileage cars.

Posco Chemical plans to add plants in China and Europe where Korean battery makers are based.

Posco Chemical shares closed Wednesday 7.06 percent lower at 158,000 won in Seoul.

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