POSCO Future M Co. has commenced production of high-nickel cathode materials at its Pohang factory, beating its schedule by three months. The South Korean company successfully manufactured nickel, cobalt, aluminum (NCA) cathodes with 88% nickel content, targeting the growing electric vehicle battery market.
The new Pohang facility, POSCO Future M’s first dedicated NCA cathode plant, boasts an annual capacity of 30,000 tons. This expansion follows a 40 trillion won ($29.8 billion) supply agreement with Samsung SDI in January 2023.
POSCO Future M is set to increase its total NCA output to 82,500 tons next year, with the completion of a 52,500-ton capacity plant in Gwangyang. The company’s ambitious plans include reaching a total NCA capacity of 248,500 tons by 2026.
Industry analysts note that while POSCO Future M’s rapid expansion is impressive, it faces stiff competition in the global battery materials market. The company’s focus on single-crystal cathodes, which enhance battery stability and lifespan, may provide a competitive edge as demand for high-performance electric vehicles continues to grow.
