POSCO Future M Holds Completion Ceremony for Gwangyang Precursor Plant: "Strengthening Supply Chain Competitiveness"

Key Raw Material "High-Purity Nickel Sulfate" and More
Securing In-House Supply Chain for Raw Materials, Intermediates, and Cathode Materials

POSCO Future M is set to begin full-scale production of precursors, a key material for secondary batteries. As global supply chain uncertainties increase, the company is expected to accelerate efforts to strengthen battery competitiveness by securing domestically produced materials.

On June 10, POSCO Future M held a completion ceremony for its precursor plant at the Yulchon Industrial Complex in Gwangyang, South Jeolla Province. The event was attended by more than 70 people, including Eom Gicheon, President of POSCO Future M; Cheon Seongrae, Head of Business Synergy at POSCO Holdings; Jeong Inhwa, Mayor of Gwangyang; Choi Daewon, Chairman of the Gwangyang City Council; and Koo Chunggon, Commissioner of the Gwangyang Bay Area Free Economic Zone Authority.

At the Posco Future M Gwangyang precursor plant completion ceremony on the 10th, a ceremony was held to light a sphere shaped like a precursor. From the fourth person from the left: Jeong Inhwa, Mayor of Gwangyang; Eom Gicheon, President of Posco Future M; Cheon Seongrae, Head of Business Synergy at Posco Holdings; Kim Younghwa, Representative of the Posco Future M Labor-Management Council. (Photo by Posco Future M)

In his commemorative address, President Eom stated, "Following the establishment of a nickel supply chain at the POSCO Group level, the completion of this precursor plant has enabled us to achieve self-sufficiency across the entire value chain, from raw materials and intermediates to cathode materials." He added, "Amid shifting global supply chain policies, the Gwangyang precursor plant will contribute to strengthening the competitiveness and growth of the domestic battery industry."

The POSCO Future M Gwangyang precursor plant was built on a 22,400-square-meter (approximately 6,800-pyeong) site within the existing Gwangyang cathode materials plant complex and is capable of producing 45,000 tons of precursors annually. This is enough to manufacture batteries for 500,000 electric vehicles. All precursors produced at this plant will be used for cathode material production at Ultium Cells.

With the completion of this plant, POSCO Future M can now directly produce large volumes of precursors, enabling even stricter quality control for cathode materials. The term "precursor" refers to substances at the stage before they become the desired structure; in the battery industry, it means the material prior to becoming cathode material. The properties of precursors vary depending on the proportion of raw materials and production methods, and because impurity control is critical, precursors are considered a key factor in determining cathode material performance.

POSCO Future M has further strengthened its supply chain competitiveness by sourcing nickel, the core raw material for precursors, at the POSCO Group level. In this structure, POSCO processes non-Chinese nickel-based raw materials into high-purity nickel sulfate and supplies it to the POSCO Future M precursor plant. In addition, POSCO HY Clean Metal supplies nickel sulfate recovered through recycling to POSCO Future M.

A POSCO Future M official stated, "We will further enhance our supply chain competitiveness in response to market changes and customer demands, and focus our capabilities on expanding research and development and our product portfolio to accelerate our growth into a global top-tier secondary battery materials company."