POSCO Chemical's Growing Prominence in the Battery Materials Business

Expand Promotional Organization and Strengthen Communication
Announce Investment in Overseas Production Base Within the Year

[Asia Economy Reporter Hwang Yoon-joo] As the secondary battery (electric vehicle battery) materials market rapidly grows, the status of POSCO Chemical is also changing. The PR organization, which was managed by one person last year, was reorganized into a Communications Office within six months. This reflects efforts to strengthen external communication with clients alongside business growth.

According to industry sources on the 4th, POSCO Chemical upgraded its PR organization to a Communications Office starting this summer. As a result, the structure now includes a Head of PR (Executive Director), PR Group Leader, and PR Team Leader. The size of the PR team has also expanded from a single PR Team Leader at the end of last year to more than 10 members this month.

POSCO Chemical is strengthening its PR organization because the surge in battery demand has increased attention on battery material companies. POSCO Chemical is the only domestic secondary battery material company producing both cathode and anode materials. Cathode and anode materials are four core components of batteries. When battery demand surges, sales increase accordingly.

POSCO Chemical entered the anode material business by acquiring the anode business organization from LS Mtron in 2010 and started the cathode material business in 2012 with the launch of POSCO ESM. As of last year, POSCO Chemical’s production capacity for cathode and anode materials was 40,000 tons and 44,000 tons respectively. The company plans to expand its annual production capacity to 400,000 tons for cathode materials and 260,000 tons for anode materials by 2030. Expansion is currently underway. The market expects POSCO Chemical’s operating profit to grow at an average annual rate of 57% over the next five years, reaching 566.5 billion KRW in the secondary battery materials sector by 2025.

A source from the domestic battery industry said, "POSCO Chemical was the fastest large corporation to invest in the battery materials business," adding, "It is an important partner for battery companies because it can make large-scale investments and operates both cathode and anode material businesses."

POSCO Chemical plans to establish production bases in major electric vehicle markets such as China, the United States, and the European Union (EU), and secure a stable global supply chain. Along with business growth, it also intends to expand its PR and marketing activities, including operating YouTube channels.