Signed a contract, the largest in its history, to supply high-nickel cathode materials for electric vehicle batteries for 10 years.
Expands product portfolio and client base with NCA cathode materials, laying the foundation for another quantum leap forward.
Established a full value chain from securing raw materials to producing materials and strengthened R&D have borne fruit.
POSCO Chemical is set to supply high-nickel cathode materials worth 40 trillion KRW to Samsung SDI.
On the 30th, POSCO Chemical announced that it has signed a contract to supply high-nickel NCA cathode materials for electric vehicle batteries to Samsung SDI for 10 years from this year to 2032. This contract, which is worth 40 trillion KRW, is the largest and longest-term order POSCO Chemical has landed since its foundation.
With this contract, POSCO Chemical has expanded its product portfolio to include NCA* in addition to NCM and NCMA* cathode materials that have been mainly produced so far, as well as earning a new client, Samsung SDI, which supplies batteries to various global automakers, thereby laying the foundation for another quantum leap forward.
* NCM and NCM(A) cathode materials: cathode materials made using lithium, nickel, cobalt, manganese, and (aluminum) as raw materials.
* NCA cathode materials: cathode materials made using lithium, nickel, cobalt, and aluminum as raw materials. A material that can maximize battery efficiency due to the high levels of battery density and output it affords.
Cathode materials account for more than 40% of battery production costs and are key materials that determine capacity and output. Cathode materials are made using lithium, nickel, cobalt, manganese, and aluminum, and the characteristics and performance of electric vehicle batteries are determined by the combination of the raw materials used.
Since starting its cathode material business in 2012, POSCO Chemical has actively carried out research and development for product diversification in line with the rapid growth of the electric vehicle market and segmented customer needs and currently has five product groups. As POSCO Chemical is also developing lithium ferro-phosphate (LFP) cathode materials, which are used for low-end electric vehicles, its product groups are expected to be further diversified depending on market conditions in the future.
Samsung SDI, on the other hand, by having a partnership with POSCO Group, which has established a full value chain from securing mining rights for lithium and nickel to material production and recycling, is now poised to acquire a stable supply chain for core materials, which are indispensable for expanding the company’s global battery business.
POSCO Chemical plans to further strengthen its long-term cooperative relationship with Samsung SDI to target the electric vehicle market based on its stable global mass production capacity and raw material competitiveness.
Yoon-ho Choi, CEO of Samsung SDI, said, “By securing a long-term, firm relationship of trust through this cooperation with POSCO Chemical, we have laid the foundation for both companies to achieve long-term, large-scale growth together. Through this, we expect to accelerate the achievement of our vision of becoming a global top-tier company in the rapidly growing electric vehicle battery market.”
Joon-hyeong Kim, the president of POSCO Chemical said, “Our efforts to expand our product portfolio through partnerships with clients and to enhance our business competitiveness in response to the rapidly growing electric vehicle market have now paid off. We will continue to strengthen our position as a global market leader in battery materials by producing world-class cathode materials through close cooperation with Samsung SDI.”
▲ POSCO Chemical and Samsung SDI signed a mid- to long-term supply contract for cathode materials. Samsung SDI president Yoon-ho Choi (left) and POSCO Chemical president Jun-hyeong Kim (right)