POSCO Future M, Approval for 30,000-Ton Scale Investment in Pohang NCA Cathode Materials

Following a 40 Trillion KRW Supply Contract with Samsung SDI
First Construction of NCA Cathode Material Dedicated Factory

A bird's-eye view of the anode material plant in Pohang, which POSCO Future M is constructing in phases. Photo by POSCO Future M

POSCO Future M is building its first dedicated factory exclusively producing NCA (Nickel-Cobalt-Aluminum) cathode materials.

On the 20th, POSCO Future M reported and received approval from the board of directors for an investment in the Pohang NCA cathode material factory to respond to the global increase in demand for high-nickel NCA cathode materials.

NCA cathode materials refer to cathode materials manufactured using lithium, nickel, cobalt, and aluminum as raw materials. They are materials that maximize efficiency due to their high battery density and output.

This new investment follows a 10-year, 40 trillion KRW supply contract for high-nickel NCA cathode materials with Samsung SDI signed in January. This is POSCO Future M’s first dedicated NCA cathode material factory. The total investment cost is 392 billion KRW. It will be built in the Yeongilman 4 General Industrial Complex in Pohang with an annual production capacity of 30,000 tons. This amount can supply approximately 300,000 electric vehicles with a 60 kWh battery capacity.

The Pohang NCA cathode material factory is scheduled to begin construction in the first half of this year and start production and sales from 2025. From next year until 2024, NCA cathode materials produced on some lines at the Gwangyang cathode material factory will be supplied. POSCO Future M plans to continuously expand NCA cathode material orders following the construction of this dedicated NCA cathode material factory.

Prior to this investment, POSCO Future M started construction in April last year of a 30,000-ton NCMA cathode material factory on the same site, aiming for operation in 2024. Therefore, by 2025, it will be possible to produce 60,000 tons of cathode materials in Pohang alone.

Meanwhile, since starting its cathode material business in 2012, POSCO Future M has actively pursued research and development to diversify its products in line with the rapid growth of the electric vehicle market and increasingly segmented customer demands. It currently has five product lines. It is also developing LFP (Lithium Iron Phosphate) cathode materials for mass-market electric vehicles, and the product lineup is expected to diversify further depending on future market conditions.