High-Nickel Cathode Materials Produced with Gwangyang Plant Precursors
Supplied to Ultium Cells in the United States
POSCO Future M has shipped cathode materials made with domestically produced precursors for the first time, marking a step toward supply chain independence by reducing reliance on Chinese materials and strengthening its response in overseas markets.
POSCO Future M employees are celebrating the first shipment of supply chain independent cathode materials at the cathode material plant in Gwangyang, Jeonnam, on the 26th of last month. POSCO Future M
On August 8, POSCO Future M announced the initial shipment of cathode materials made using domestically self-sufficient precursors. These cathode materials are high-nickel NCMA (nickel, cobalt, manganese, aluminum) products, known for their high energy density and output. They will be used in the manufacturing of high-performance electric vehicle batteries at Ultium Cells, a joint battery venture between LG Energy Solution and General Motors (GM) in the United States.
The cathode materials in this initial shipment were produced using precursors manufactured at POSCO Future M’s precursor plant in the Yulchon Industrial Complex in Gwangyang, Jeonnam, which was completed on June 10 and has an annual capacity of 45,000 tons. Precursors, composed of nickel (Ni), cobalt (Co), and manganese (Mn), are a key process that determines the capacity and electrochemical properties of battery cells and account for 70% of the cell’s cost. At the cathode material plant, these precursors are combined with lithium (Li) to become finished cathode materials.
With global supply chain regulations on Chinese battery materials tightening, POSCO Future M is now able to meet U.S. supply chain requirements by producing cathode materials using domestically self-sufficient precursors. Starting with the shipment of supply chain independent cathode materials from the Gwangyang cathode material plant for the U.S. market, POSCO Future M plans to expand production at its Pohang cathode material plant as well.
According to the U.S. tax reduction bill (OBBBA) passed last month, a new Prohibited Foreign Entity (PFE) provision has been added to the Advanced Manufacturing Production Credit (AMPC), further strengthening regulations on the Chinese supply chain. However, domestic dependence on Chinese precursor imports still exceeds 90%. As a result, the domestic battery materials industry is actively pursuing the production of cathode materials using domestically produced precursors to strengthen supply chain competitiveness.
POSCO Future M sources high-purity nickel sulfate refined by the POSCO Group, and also procures nickel sulfate recycled from waste batteries through POSCO HY Clean Metal. Lithium is also stably secured through affiliate supply chains utilizing Australian ore, Argentine brine, and waste batteries.
A POSCO Future M representative stated, "By establishing a self-sufficient system for raw materials (lithium and nickel), intermediate products (precursors), and cathode materials, we expect to gain a supply chain competitiveness advantage over competitors even amid changes in global policy environments."
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