POSCO Future M to build large-scale cathode material plant in Korea

[Courtesy of POSCO Future M]

POSCO Future M, the battery materials subsidiary of POSCO Group, is set to construct a large-scale high-nickel NCA (Nickel-Cobalt-Aluminum) cathode material factory with an annual capacity of 52,500 tons at the Yulchon Industrial Complex in Gwangyang.

The groundbreaking is slated for the first half of next year, with completion expected in the latter half of 2025. To materialize this project, POSCO Future M will invest a total of 683.4 billion won ($534.2 million) by 2025.

The plan was approved by POSCO Future M’s board on Monday.

NCA cathode materials are produced using essential raw materials like lithium, nickel, cobalt, and aluminum. Renowned for their high energy density and exceptional output, these materials optimize efficiency, leading to a surge in global demand.

This latest investment follows the construction of a 30,000-ton dedicated NCA factory in Pohang, which began in April. With this investment, POSCO Future M’s NCA cathode material production capacity will expand to 80,000 tons by the second half of 2025.

When combined with the already confirmed production capacity of 240,000 tons for NCM (Nickel-Cobalt-Manganese) and NCMA (Nickel-Cobalt-Manganese-Aluminum), the total cathode material production capacity by the company will reach about 320,000 tons.

The establishment of the NCA cathode material factory in the Yulchon Industrial Complex is also expected to create synergies across various businesses. The complex already houses POSCO HY Clean Metal, operating the world’s largest 90,000-ton high-nickel cathode material factory, and a recycling business.

Additionally, POSCO Pilbara Lithium Solution, which produces lithium hydroxide, is nearing completion this year, making the complex a major hub for POSCO Group’s battery materials business.

According to market tracker SNE Research, the global electric vehicle market is projected to continue its steady growth, with an estimated production volume of 48.3 million units by 2030.

In response to this growth trend in the EV market, POSCO Future M stated its commitment to proactively expand cathode material production capacity to 1 million tons by 2030.

Amid the boom in the EV battery market, POSCO Future M rose to the eighth position in terms of market capitalization in South Korea, surpassing Hyundai Motor on Tuesday.

As of 9:14 am, POSCO Future M shares were trading at 590,000 won, up 8.86 percent from the previous day, with a market cap of 45.7 trillion won. This propelled the company ahead of Hyundai Motor (42.5 trillion won) in market cap and is now closely chasing LG Chem (51.1 trillion won) and Samsung SDI (48.96 trillion won) ranked 6th and 7th, respectively.