POSCO Chemical, the Core of Secondary Batteries with 'Battery Cathode and Anode Materials' Wings... Approaching 2 Trillion KRW in Sales

Energy Materials Business Sales Up 59.7% Year-on-Year... Last Year's Performance Increased

The anode material factory in Gwangyang-si, Jeollanam-do, which POSCO Chemical plans to complete in May. (Photo by POSCO Chemical)

[Asia Economy Reporter Moon Chaeseok] POSCO Chemical recorded nearly 2 trillion won in sales on a consolidated basis last year, achieving the best business performance since its establishment. In particular, the strong performance in battery cathode and anode materials, which are considered core materials for secondary batteries, has been met with positive reactions.

According to POSCO Chemical on the 1st, the company announced on the 26th of last month that its operating profit on a consolidated basis last year increased by 101.9% compared to the previous year to 121.7 billion won, and sales increased by 27% to 1.9895 trillion won.

Sales of high-nickel cathode materials for electric vehicle batteries, a core business in the energy materials sector, increased. The rise in raw material prices such as lithium and nickel was reflected in the selling price, resulting in sales of 851.8 billion won, up 59.7% from the previous year. This is a 289% increase compared to the 219 billion won in cathode and anode material sales in 2019, when POSCO Chemical first entered the cathode material business by merging with POSCO ESM. The sales proportion of the entire business also expanded from 14.8% to 42.8% during the same period. In addition, lime chemical sales increased by 16.4% year-on-year to 675.3 billion won, and the refractory business recorded a slight increase to 462.5 billion won during the same period.

The secondary battery materials business, including battery cathode and anode materials, is known as a field that Chairman Choi Jung-woo of the group is deeply committed to. Known as a 'financial expert,' Chairman Choi served as CEO of POSCO Chemtech before POSCO Chemical merged with POSCO ESM in 2018. Although he is not an engineer by training, he is known to have consistently shown great interest in securing growth engines. An industry insider explained, "In the case of POSCO Chemical, after Chairman Choi took office as CEO, the company has expanded the scale of its secondary battery materials business," adding, "After the capital increase, the company created investment capacity for the secondary battery business and provided support for the raw material sector, showing meaningful growth." Earlier on the 15th, POSCO Chemical announced that it secured 1.2735 trillion won through a capital increase. After the capital increase, the debt ratio was significantly reduced from 104% a year ago to 60.9%.

Battery materials are a key factor in extending the driving range of electric vehicles. POSCO Chemical's policy is to expand mass production capacity in this sector and strengthen 'technological leadership' in the industry through research and development (R&D). The company plans to complete the comprehensive construction of the world's largest cathode material plant in Gwangyang, with an annual capacity of 90,000 tons, in May. It is also establishing global mass production bases by newly building and expanding cathode material plants in North America, China, and Pohang. For anode materials, the company is expanding production facilities for low-expansion natural graphite for electric vehicles and has started full-scale production of artificial graphite anode materials to diversify its product portfolio. Through this, it plans to secure annual production capacities of 105,000 tons for cathode materials and 84,000 tons for anode materials this year. POSCO Chemical is the only anode material manufacturer in Korea.

The company also plans to accelerate the development of customized technologies for demand companies and the acquisition of government certifications. It intends to develop high-nickel single-particle cathode materials for electric vehicles, cobalt-free cathode materials, and artificial graphite anode materials using low-cost raw materials to meet the demands of global electric vehicle companies. By introducing highly productive process technologies, it aims to enhance cost competitiveness. While pursuing environmental certification for cathode materials, it will also improve the transparency and stability of the battery material raw material supply chain.