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Posco Chemical builds 4th production facility for cathode base materials

1. April 2021

Posco Chemical Co, a subsidiary of South Korean steel giant Posco, mainly produces refractory materials and secondary base materials for batteries. To capitalize on the growing demand for electric car batteries, the company is investing around $249 million in a fourth cathode basic materials production facility. The investment will expand the existing cathode materials factory in Gwangyang, South Jeolla Province, Posco announced at the groundbreaking ceremony in late February. Production is scheduled to start in 2023.


A fourth plant will increase the group’s annual production capacity to 100,000 tons. The expansion will mainly involve the construction of production lines for nickel-containing NCMA cathodes. NCMA cathodes are combined with NCM cathodes and increase the stability of the batteries and their capacity while keeping production costs low. Such a vehicle battery can achieve a range of up to 500 kilometers on a single charge.

Already last year, Posco Chemical started to expand its production for vehicle batteries. The capacity of the plant in Gwangyang was increased to 25,000 metric tons, starting there with 5,000 tons annually. The next increase of another 30,000 tons is already under construction and will start operations in November. The future annual output of 100,000 tons of cathode raw material in 2023 is sufficient for 1.1 million electric cars, each equipped with a 60 kWh battery. Electric car components, which include batteries, must undergo certification for the KC mark or KC certificate in Korea. Our experts are available to answer their questions at any time without obligation.

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MPR Author

About the author: Julian Busch is founder and managing director of MPR International GmbH
Publisher: MPR International GmbH

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