Posco Future M employees applaud the inaugural shipment of NCA anode material from their new cathode materials plant in Pohang, North Gyeongsang Province, Saturday. (Posco Future M)

Posco Future M has started operations at its new plant in Pohang, North Gyeongsang Province, dedicated to producing nickel-cobalt-aluminum cathode materials for electric vehicle batteries. The plant, which shipped its first batch over the weekend, will help meet the growing demand for high-performance EV battery components.

NCA cathode materials, with 88 percent nickel content, are key for making EV batteries more efficient. In January 2023, Posco Future M secured a 40 trillion won ($29.6 billion) supply contract with Samsung SDI to provide NCA cathode materials from its Gwangyang facility. To keep pace with demand, Posco Future M accelerated the launch of the Pohang plant, bringing it online three months ahead of schedule.

The company will have a combined capacity of 82,500 metric tons of NCA cathode materials annually, with the Pohang plant having an annual production capacity of 30,000 tons and its larger facility under construction in Gwangyang, adding another 52,500 tons per year by 2025.

Both Pohang and Gwangyang will also produce single-crystal cathode materials -- an innovation that enhances battery performance by improving thermal stability and extending battery life. Posco Future M became the first in Korea to mass-produce single-crystal NCMA cathode materials in 2023, and the new facilities will strengthen its ability to produce NCA versions as well.

With the addition of NCA cathode materials, Posco Future M is broadening its product lineup, which already includes NCM and NCMA materials. This diversification positions the company to meet a wider range of customer needs as the EV market grows and diversifies. High-nickel cathode materials, like NCA, are especially valuable for enhancing battery performance, which should improve Posco Future M’s profitability.

Posco Future M’s long-term strategy focuses on expanding production capacity at its Pohang and Gwangyang sites.

“We expect to hit a total annual production capacity of 248,500 tons by 2026, split between 106,000 tons from Pohang and 142,500 tons from Gwangyang, including the new NCA plant we’ve just completed,” said a company official.

By Moon Joon-hyun (mjh@heraldcorp.com)