poscofuturem

- Gwangyang cathode material plant supplies high-nickel cathode materials made with self-sufficient precursors to Ultium Cells in the United States

- Achieves competitiveness through a self-sufficient system spanning raw materials, intermediates, and cathode materials amid global policy changes

POSCO Future M has made its initial shipment of cathode materials produced using self-sufficient precursors.

These cathode materials are high-nickel NCMA (nickel-cobalt-manganese-aluminum) products, characterized by high energy density and output. Ultium Cells (a U.S.-based joint battery venture between LG Energy Solution and GM) will use them to manufacture high-performance electric vehicle batteries.

The cathode materials shipped for the first time on July 26 were manufactured using precursors produced at POSCO Future M’s precursor plant, which has an annual capacity of 45,000 tons. The plant was completed on June 10 at the cathode material plant site in the Yulchon Industrial Complex in Gwangyang, Jeollanam-do Province. Precursors are composed of nickel (Ni), cobalt (Co), manganese (Mn), and other materials, and are combined with lithium (Li) at the cathode material plant to become cathode material products.

As supply chain regulations on Chinese battery materials are being strengthened in the global market recently, POSCO Future M has become able to meet the supply chain requirements demanded by the U.S. market by producing cathode materials with domestically produced precursors. POSCO Future M plans to begin shipping supply chain-independent cathode materials to the United States from its Gwangyang cathode material plant and expand production at the Pohang cathode material plant as well.

According to the U.S. tax reduction bill (OBBBA) passed last month, supply chain regulations are being further strengthened with the establishment of Prohibited Foreign Entity (PFE) provisions in the Advanced Manufacturing Production Credit (AMPC), but according to SNE Research, an energy-specialized market research firm, Korea’s import dependence on China for precursors reached over 90% as of March this year. Accordingly, Korea’s battery material industry is actively pursuing the production of cathode materials using domestic precursors to secure supply chain competitiveness.

Meanwhile, POSCO Future M is expected to gain supply chain competitive advantages over competitors even amid global policy changes by establishing a self-sufficient system spanning raw materials (lithium-nickel)-intermediates (precursors)-cathode materials through group companies including POSCO, POSCO HY Clean Metal, POSCO Pilbara Lithium Solution, and POSCO Lithium Solution.