[Asia Economy Reporter Jang Hyowon] Baekkwang Industrial is showing strength following news that POSCO Chemical is pushing for mass production of NCA cathode materials. Baekkwang Industrial produces caustic soda, an essential material for making cathode materials.
As of 1:46 PM on the 3rd, Baekkwang Industrial is trading at 4,555 KRW, up 225 KRW (5.2%) from the previous trading day.
POSCO Chemical announced on the same day that it is preparing to establish a mass production system for nickel-cobalt-aluminum (NCA) cathode materials.
NCA cathode materials are products that combine aluminum instead of manganese in nickel-cobalt-manganese (NCM) cathode materials, which are widely used in ternary batteries. Increasing aluminum content is known to prevent nickel overload, thereby reducing the risk of explosion.
Currently, companies using NCA cathode materials include Samsung SDI and Japan's Panasonic. Additionally, POSCO Chemical is also preparing to enter the lithium iron phosphate (LFP) cathode material market, which is led by China.
Cathode materials account for more than 40% of battery costs, and it is known that at least 0.89 tons of caustic soda are required to produce 1 ton of cathode material precursor.
Baekkwang Industrial manufactures inorganic chemical products such as caustic soda, hydrochloric acid, and liquid chlorine, as well as sorbitol, through its electrolytic cell facilities.
The price of caustic soda was in the $314 per ton range until last year but rose to $590 per ton in the first quarter of this year. The upward trend surged further in the second quarter, reaching around $679 per ton, and sharply increased to about $645 per ton in July. The price of caustic soda is steadily rising due to increased demand from downstream companies.
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