Ultra high-nickel cathode materials maximize driving range while enhancing safety and lifespan… also suitable for high-power mobility, including UAM and autonomous driving

High-voltage mid-nickel cathode materials deliver improvements across energy density, cost competitiveness, and safety

Complete cathode material portfolio addresses all vehicle segments… strengthens business competitiveness in the cathode materials market by addressing diverse customer demands

POSCO Future M has strengthened its premium electric vehicle market strategy and now possesses a comprehensive cathode material portfolio capable of addressing premium, standard, and entry-level EV markets.

POSCO Future M has completed the pilot development of ultra-high-nickel cathode materials for premium electric vehicles and high-voltage mid-nickel cathode materials. The company currently produces and supplies premium cathode materials centered on N8x*, and expects to further strengthen its business competitiveness in the cathode materials market by responding to diverse customer demands through mass production and supply of these newly developed materials.

*N8x: High-nickel cathode materials with nickel content of 80% or higher

Ultra-high-nickel cathode materials are premium materials that maximize driving range by increasing energy density with nickel content of 95% or higher. POSCO Future M is developing these materials to supply premium electric vehicles in key advanced markets, such as the United States and Europe, as well as urban air mobility (UAM), which is gaining attention as a future transportation option. As the expansion of AI utilization in mobility and the advancement of autonomous driving capabilities require substantial power consumption, the demand for ultra-high-nickel cathode materials that maximize energy density is expected to increase significantly.

While ultra-high-nickel cathode materials have relatively low thermal stability and shorter battery life due to their high nickel content, POSCO Future M has secured the required performance by combining single-crystal materials—which bond key raw materials into unified particle structures—with existing polycrystalline materials. Single-crystal materials exhibit robust particle structures with minimal cracking during charge-discharge cycles, and their structural stability has been further enhanced through the addition of auxiliary materials and surface coating of these materials. Cost competitiveness has also been secured through improved productivity in calcination processes.

POSCO Future M has also completed the pilot development of high-voltage mid-nickel cathode materials, targeting the standard electric vehicle market. High-voltage mid-nickel cathode materials reduce the proportion of expensive nickel to approximately 60%, while addressing the resulting decrease in energy density through high-voltage operation. Safety has been further enhanced by increasing the manganese content and implementing single-crystallization to minimize expansion and contraction during charge-discharge cycles. Additionally, cost competitiveness is enhanced by using co-precipitation-free precursors* during manufacturing, reducing expensive nickel content and cobalt in raw materials, and substituting inexpensive lithium carbonate for lithium hydroxide.

*Co-precipitation-free precursor: Precursor manufactured by omitting the co-precipitation process that mixes complexing agents and modifiers into metal solutions containing dissolved key precursor raw materials such as nickel, cobalt, and manganese

Following the pilot development of ultra-high-nickel and high-voltage mid-nickel cathode materials, POSCO Future M plans to secure mass production technology. This will enable timely production and supply upon request from domestic and international automotive manufacturers and battery companies.

Prior to this, in May, POSCO Future M completed pilot development of LMR cathode materials in collaboration with POSCO Holdings’ POSCO N.EX.T Hub, which oversees POSCO Group R&D, amid announcements by global automakers, including GM and Ford, regarding LMR battery adoption plans, and decided to secure mass production technology within the year. LMR cathode materials are gaining attention as next-generation materials that can rapidly replace the entry-level EV market currently occupied by LFP, as they can utilize existing cathode material production lines and offer superior recycling value compared to LFP cathode materials.

The POSCO Group maintains its policy of leading the future battery industry by conducting research and development on next-generation materials, such as lithium sulfide, solid electrolytes, and lithium metal anodes, at POSCO Holdings’ POSCO N.EX.T Hub.

▲ POSCO Future M has completed pilot development of ultra-high-nickel cathode materials for premium electric vehicles and high-voltage mid-nickel cathode materials. A POSCO Future M researcher is examining ultra-high-nickel cathode material crystals.

Diversifies portfolio to include LMR and LFP in addition to existing ternary high-nickel cathode materials

POSCO Future M signed an MOU with CNGR on the 8th at the POSCO Center in Daechi-dong for pursuing the LFP (lithium-iron-phosphate) cathode material business.

CNGR’s Korean subsidiary, FINO, also participated in this MOU. The three companies will cooperate on the construction of LFP cathode material production facilities for ESS (Energy Storage System) and joint marketing, as per the agreement.

POSCO Future M signed a joint venture agreement (JVA) with CNGR in 2023 to cooperate on precursor production and established C&P Advanced Technology* the following year. This MOU aims to rapidly expand the scope of cooperation from precursor production to LFP cathode materials at the C&P Advanced Technology.

* C&P Advanced Technology ownership structure: CNGR 51%, FINO 29%, POSCO Future M 20%

LFP batteries have a lower output compared to ternary batteries, such as NCM (nickel-cobalt-manganese), but offer advantages of low cost and long lifespan. Recently, they have been increasingly applied in various fields, including ESS and entry-level electric vehicles.

In particular, ESS does not have stringent space and output requirements compared to electric vehicles, and it requires a long lifespan; therefore, the preference for LFP batteries has been increasing even more recently. According to the International Energy Agency (IEA), LFP batteries held approximately 80% market share in the global ESS market as of 2023.

POSCO Future M is diversifying its cathode material product portfolio to respond more actively to changing customer needs. POSCO Future M primarily produces high-nickel NCMA (nickel-cobalt-manganese-aluminum) and NCA (nickel-cobalt-aluminum) for premium electric vehicles, and completed development of LMR (lithium-manganese-rich) cathode materials for entry and standard-grade electric cars in the first half of this year. Additionally, since March, the company has been pursuing research and development by organizing a task force (TF) jointly with POSCO Holdings Future Technology Research Institute for the commercialization of high-density LFP cathode materials with higher energy density compared to general-purpose LFP cathode materials.

From now on, POSCO Future M plans to continuously expand its global customer base in the automotive and battery industries, leveraging diverse cathode and anode material product portfolios, strengthened manufacturing capabilities, and supply chain competitiveness at the POSCO Group level.

▲ POSCO Future M signed an MOU with CNGR and FINO for LFP cathode material business development on the 8th at the POSCO Center in Daechi-dong. From left: CNGR Vice Chairman Zhu Zongyuan, POSCO Future M Energy Materials Business Division Head Yoon Tae-il, FINO CEO Li Bin.

Data-driven prediction and anomaly detection models expected to improve reliability and performance of next-gen battery materials

POSCO Holdings’ Future Technology Research Institute has successfully identified the causes of performance degradation and the reaction mechanisms of LMR (Lithium-Manganese-Rich) cathode materials, recognized as a key component of next-generation secondary batteries, through data-driven analysis. The results of this study were published in Issue 18 of Energy & Environmental Science, a globally renowned journal in the field of energy and environment, on May 7, 2025.

LMR cathode materials are next-generation battery components designed to reduce the use of expensive cobalt and nickel by incorporating abundant and low-cost manganese, thereby enhancing cost competitiveness. These materials boast an energy density that is 33% higher than that of conventional LFP (Lithium Iron Phosphate) batteries. As a result, they are expected to not only extend the driving range of electric vehicles but also offer significant value in post-use recycling. With global automakers such as GM and Ford formally adopting LMR batteries, the market expansion is progressing rapidly．

However, LMR batteries have faced commercialization challenges due to voltage drop during charge and discharge cycles, which leads to performance degradation. To address this issue, researchers at the Future Technology Research Institute analyzed over 30,000 battery charge datasets using AI, integrating them with various experimental data to identify the degradation causes and underlying reaction mechanisms of LMR materials. In particular, they applied dimensionality reduction techniques to pinpoint key factors affecting battery performance and linked these to observable phenomena such as manganese transformation and increased electrical resistance.

The data-driven model developed through this study serves as a crucial tool for predicting the performance of LMR batteries in advance and detecting anomalies at an early stage. It is expected to significantly enhance the reliability and safety of electric vehicle batteries in the future.

Building on the outcomes of this research, POSCO Holdings presented studies on the application of machine learning for battery material design and performance enhancement, as well as microstructure-based material optimization, at the Korean Institute of Metals and Materials and the AI4AM international conference in April. Further, the company is scheduled to present its AI-driven battery materials research at the Korean Institute of Chemical Engineers in October, and the latest research findings published on arXiv will be released soon.

Sang-cheol Nam, Head of the LIB Materials Research Center at the Future Technology Research Institute, stated, “We plan to continuously expand research that integrates AI with experimental data to drive the development of high-performance, high-reliability secondary battery materials.” He added, “By reinforcing data-driven analysis not only for LMR cathode materials but also for a wide range of battery materials, we aim to strengthen our competitiveness in the global battery market.”

In an interview, Research Director Jeong-jin Hong stated, “POSCO Holdings is continuously pursuing technological innovation across next-generation battery and energy materials through collaboration not only with various group affiliates such as POSCO Future M, but also through partnerships with external companies.” He added, “By integrating energy materials research with AI, we are leading advancements not only in battery technology but across a broad spectrum of energy-related fields, and we are actively sharing these research outcomes with both industry and academia.” He emphasized, “We will continue to expand collaboration and research across various domains to further strengthen our competitiveness in the global battery market.”

▲ Conceptual diagram of the AI-based degradation mechanism analysis and prediction model for LMR cathode materials developed by POSCO’s Future Technology Research Institute.

▲ Leading researchers: (From left) Dr. In-chul Park and Dr. Ji-eun Kim of POSCO Holdings, and Researcher In-jun Choi of RIST.

Presents cathode and anode material technologies as solutions to the chasm, enhancing EV driving range, charging speed, and cost-effectiveness

Introduces next-generation materials such as solid electrolytes and lithium metal anodes, along with process technologies including Direct Lithium Extraction

POSCO Future M features its new cathode and anode material technologies and products at InterBattery 2025, held at COEX Seoul from the 5th to the 7th.

POSCO Future M will showcase its cathode and anode material technology roadmap and the group-level supply chain achievements spanning raw materials, materials, and recycling to address the temporary demand stagnation known as the “chasm” by enabling electric vehicles that travel farther, charge faster, and cost less.

First, for electric vehicles that travel farther, the company is introducing Ultra Hi-Ni (Ultra High Nickel) single-crystal cathode materials that maximize energy density by increasing nickel content to over 95%. This material, designed for premium electric vehicles requiring extended driving range, is scheduled for mass production technology development by 2026. Additionally, silicon-carbon anode materials (Si-C), which can increase storage capacity approximately 5 times compared to graphite-based anodes, have been operating in a demonstration plant since May last year, with mass production planned for 2027.

The company is also introducing low-expansion natural graphite anode materials to enable faster charging and enhance convenience for electric vehicle users. This proprietary product, which POSCO Future M has developed and is supplying to global automakers, improves lithium-ion mobility and reduces volume expansion by modifying the material structure from flake-type to isotropic. Through continuous R&D for performance enhancement, the company plans to mass-produce products that can reduce charging time by 30% compared to existing products beginning in 2027.

For more affordable materials to reduce electric vehicle prices and drive popularization, the company is introducing LFP (Lithium Iron Phosphate) as well as LMR (Lithium Manganese Rich), LMFP (Lithium Manganese Iron Phosphate), and high-voltage mid-nickel single-crystal cathode materials. In particular, LMR cathode materials reduce the proportion of nickel and cobalt while increasing manganese to enhance price competitiveness and performance. When recycling is factored in, its price is similar to LFP but with up to 30% higher energy density, and mass production technology is scheduled for development this year. For mid-priced electric vehicles, the company is also showcasing high-voltage mid-nickel (Mid-Ni) single-crystal cathode materials, which maintain high energy density despite reducing nickel content to about 60% by applying high voltage, suitable for standard-class electric vehicles.

At this exhibition, POSCO Future M will also introduce next-generation materials being developed at POSCO Holdings’ POSCO N.EX.T Hub, including solid electrolytes and lithium metal anodes that will be game-changers for the future battery industry. Additionally, the company will share achievements and current status of value chain development, including POSCO Holdings’ Direct Lithium Extraction (DLE) method, new nickel wet refining process technologies, and dry recycling technology (POS-Pyrocycle) that reduces waste generation and carbon emissions.

The POSCO Group has been expanding investments in lithium salt lakes in Argentina, lithium mines in Australia, nickel smelting operations in Indonesia, and graphite mines in Africa. Going forward, the group will strengthen business competitiveness by proactively securing premium resources, turning the chasm crisis into an opportunity to enhance competitiveness.

POSCO International will also present strategies for establishing supply chains for drive motor cores, a key component for electric vehicles, and graphite. The company is expanding its eco-friendly vehicle parts business to establish a global annual production system of 7.5 million units and achieve a 10% market share by 2030. To this end, it operates production clusters domestically and internationally, and plans to complete a factory in Brzeg, Poland this year. POSCO International has signed a 25-year long-term natural graphite supply contract with FARU Graphite in Tanzania, a subsidiary of Australian mining company Black Rock Mining, in May 2023 and September 2024. POSCO will introduce steel products for electric vehicles, including battery pack and cylindrical battery-can materials.

Meanwhile, POSCO Future M has prepared an exhibition space of 451 ㎡, 25% larger than last year, under this year’s exhibition theme “Move on, Change the Future.” The exhibition space is designed to help visitors understand the company’s technology and business more enjoyably. The exhibition hall displays samples of cathode and anode materials, lithium, nickel, and products made with the company’s battery materials, including electric vehicles, electric bicycles, and power tools. The exhibition’s immersive experience is enhanced through a large vertical media wall and panoramic display featuring virtual 3D imagery.

POSCO Future M is hosting various events for visitors during the exhibition period. Visitors can experience generating electricity by pedaling a bicycle generator installed at the booth. The electricity generated is converted and accumulated for donation to the POSCO 1% Sharing Foundation. Additionally, through a drawing, prizes including electric bicycles, kickboards, power tool sets, and drones will be given to a total of 12 people, 4 people each day for 3 days.

▲POSCO Future M announces its cathode and anode material technology roadmap and group-level supply chain construction achievements to overcome the electric vehicle chasm at InterBattery 2025. A view of POSCO Future M’s booth at InterBattery 2025 held at COEX Seoul.

▲(From right to left) Minister Ahn Duk-geun of the Ministry of Trade, Industry and Energy, POSCO Future M President Eom Gi-chen, and National Assembly Member Kim Jong-min experience an event at POSCO Future M’s InterBattery 2025 booth where visitors generate electricity by pedaling a bicycle generator, with the generated electricity being converted and accumulated for donation.

▲POSCO Future M announces its cathode and anode material technology roadmap and group-level supply chain construction achievements to overcome the electric vehicle chasm at InterBattery 2025. Visitors examine various cathode and anode material products at the POSCO Future M booth.

– Finding the Hidden POSCO! –

Let’s begin!

① GIGA STEEL — Stronger, Lighter and Better for the Environment

POSCO developed GIGA STEEL, stronger and lighter than competing materials like aluminum and carbon fiber reinforced plastics (CFRP). Withstanding over 100 kg on 1mm2 space, GIGA STEEL builds stronger car bodies, suspension and battery packs making electric vehicles (EVs) safer for the public. Three times stronger and yet 3 times thinner than aluminum, it vastly lightweights car bodies.

With such strength, the GIGA STEEL effectively absorbs and disperses shocks in the event of an accident. It minimizes the shock impact thereby protecting the passengers as well as the batteries. Lighter but sturdier cars were made possible through POSCO’s GIGA STEEL.

GIGA STEEL is also eco-friendly as it helps protect the environment by reducing the cumulative CO2 emissions of cars by about 10%.

② Steel in the Tires! POSCO’s WTP Tire Cord Steel

Though invisible, steel is what makes car tires more durable. POSCO’s WTP (World Top Premium) tire cord steel is hidden in tire chords one of the many essential tire components. POSCO’s WTP refers to a line of products that enhance clients’ competitiveness with its high technology. POSCO’s WTP steel wire for tire cords are highly regarded – it improves stability and while minimizing the tire weight.

And it’s produced by twisting high carbon steel wire rod into a fine wire of 0.4 to 1.15mm in diameter. To withstand various dynamic loads on the vehicle, the tire cord steel undergoes rigorous quality control.

③ For Drive Motors, the World-class Electric Steel Hyper No

A motor is a key component of EVs. It boosts fuel efficiency and the performance of EVs. The function of drive motors in EV is that of an engine in gas vehicles – it allows the driveshaft to rotate via electric current. Highly efficient drive motors must be equipped with electrical steel plates with minimal power loss. POSCO has developed just that – the world-class electric steel plate, Hyper NO. Hyper No is used on high-efficiency motors.

When converting electricity into rotating energy, energy loss is inevitable. POSCO’s Hyper NO effectively minimizes the energy loss, thereby increasing energy efficiency – by over 30% than conventional products. To maximize motor efficiency, POSCO increased the magnetic flux density and successfully minimized energy loss. Thanks to POSCO’s Hyer No, an ultra-thin electric panel, as thin as 0.15mm, with minimum energy loss became a reality.

The ‘self-bonding’ technology POSCO developed recently applies coatings to the surface of electric steel plates, whose function is similar to that of glue. Unlike welding, POSO’s self-bonding technology retains the innate electromagnet characteristics of electric steel plates, which also connects to the improved motor efficiency. The self-bonding reduces energy loss by over 10 % compared to the conventional welding technique.

④ Secondary Battery Materials – from POSCO CHEMICAL!

Unlike disposable primary batteries, secondary batteries can be recharged and reused repeatedly. Lithium-ion battery, an essential component of EVs, is a type of second batteries. Besides EVs, it is a popular choice for many consumer electronics such as portable devices and laptops. It’s also widely used for industrial robots and power tools that require high capacity and power.

A secondary battery consists of cathode materials that determine the average voltage and capacity of a battery, and anode materials which induce current flow by storing then releasing lithium-iron from the cathode, via external circuits.

POSCO CHEMICAL, POSCO Group’s up-and-coming-global enterprise, produces key materials for secondary batteries – cathode and anode materials. The newly established POSCO CHEMICAL is the result of the merger back in April – between POSCO ESM, top-quality cathode producing enterprise, and POSCO CHEMTECH, Korea’s only natural graphite anode producer. As a result of their merge, POSCO CHEMTECH is expected to bring synergies between anode and cathode production. Large-scale early investments in production facilities are currently underway.

⑤ Battery Charge Stations? POSCO ICT Is on It

The biggest concern for the early adopters of EVs is the business of charging the EVs. Making the charge as easy as possible is the key part of the solution.

That’s where POSCO ICT comes in. POSCO ICT established ‘ChargEV,’ a charging infrastructure for EVs. ChargEV provides comprehensive services related to charging EVs, which includes charge stations, control systems, charging membership as well as car-sharing services. Considering accessibility and charging time, POSCO ICT has already established public charging networks at major hubs across Korea – Lotte Mart, E-Mart, Homeplus, and LG Electronics’ BEST SHOP, etc.

⑥ Safe Power Supply, With POSCO ENERGY

Providing power for EVs is also POSCO Group’s utmost priority. Since launching the energy business in 1969, POSCO ENERGY has steadily supplied power to the Seoul Metropolitan area for over 50 years. Through expanded businesses such as the LNG combined-cycle power plant in Incheon, the company went from being Korea’s first private power plant to Korea’s largest.

As it turns out, the world’s top steelmaker POSCO was also a key player in producing core EV materials. The next installation of [Find the Hidden POSCO] will explore POSCO technologies that can be found inside our homes.

Hyperloop floating through the Megacity has become the hallmark of future transportation. (Source: Big Think Edge)

The premise scene of the current Sci-Fi hit series, “Westworld” reveals guests being whisked to the entrance of Westworld, the show’s elaborate theme park. This is carried out in a super-fast magnetic levitation pod, whooshed forward in a blur at the speed of sound. This is in fact, the synthetic cameo of Elon Musk’s actual innovation, the Hyperloop.

Although this backdrop is 2052, evidently far-fetched to the eye, the advent of Hyperloop as we know it is even more materialized in reality than viewers may imagine. This mode of transport is a peek at the bird’s eye view of what’s to come.

The electric vehicle is a major mode of futuristic transportation we are already familiar with. The commercialization of flying cars and drone taxis as well are in the cards. And what is the role of steel in their manifestations?

The Era of Electric SUV with Lightweight Steel

The I.D. Crozz by Volkswagen is an electric-powered cross-over between a coupé and SUV (Source: Volkswagen Newsroom)

The transport of tomorrow we are most accustomed to is the electric car. Some of the major auto industry players such as BMW Group, Volkswagen Group, and Ford Group have formed a Pan-European EV charging network, Ionity to ensure enough charging stations to meet the growing EV units.

Frontrunner Tesla’s most recent electric SUV invention, the Tesla Model X has motivated global competitors to spring up a range of electric SUVs. With the release of Jaguar I-Pace in March and the Hyundai Kona Electric in May along with the anticipated launch of Audi’s E-tron Quattro and Sportback, worldwide carmakers and consumers alike are aware that a new generation of electric SUV and its crossover versions are already in full swing.

Previously, the electric motor was commonly applicable only in compact or subcompact cars due to its limited battery capacity. They weren’t capable of reaching over a certain distance even once fully charged. As follows, lightweighting is inevitable to secure more miles on the road.

The development of battery performance and vehicle lightweighting technologies have enabled the creation of the electric SUV. Primary components of EV are the electric motors and batteries, especially the lithium-ion batteries that power the vehicle using POSCO’s cathode and anode.

An anode is a positively charged electrode in which the current flows into the system. Since last year, POSCO ES MATERIALS has been manufacturing highly-stable anode material, the PG-NCM which is world’s finest in quality. The cathode generates electricity by storing and releasing the lithium contained in the anode. At present, POSCO CHEMTECH is the sole manufacturer of anode materials in the domestic market.

The second solution to car lightweighting for more mileage would be POSCO’s Giga Steel. Giga Steel is a high-intensity steel capable of enduring the weight of 1,500 subcompact cars with a size that is merely 4 inches in width and 6 inches in length. Its intensity is thrice that of an automotive aluminum enabling even thin steel sheets to perform as robust car structure. Accordingly, it is unmatched in resolving both lightweight and stability issues for its lightness and high endurance. Experts predict the increase in demand for ultra-high tensile steel with gigapascal capacity of endurance suitable for advanced safety measures.

Whizzing from New York to Washington DC in 30 Minutes

Hyperloop travels at a supersonic speed of 760 miles per hour faster than that of a commercial airplane. (Source: Inverse)

A quick weekday evening spent with a family member in a US home state after work may just happen. A San Francisco resident can enjoy dinner after work with a friend from college in downtown LA in just 30 minutes. The same amount of time would take for a Dutch in Amsterdam to travel to Paris for a quick photo of the Eiffel Tower. The mode of transportation? None other than the Hyperloop.

It is one of the most innovative technologies in the next generation of transport initially mentioned in 2012 and explicitly open-sourced the following year by the CEO of Tesla Motors and Space X, Elon Musk. A pressurized pod would float through the vacuum tunnel while magnetic levitation enables it to hover above the rail to reduce friction.

Theory suggests the speed of Hyperloop is around 760 mph, considerably faster than that of a regular passenger flight which is 547 to 575 mph. It can transport passengers to neighboring states in the US or to neighboring countries in about half an hour. There is almost zero emission while solving congestion problems in a sustainable and cost-efficient way.

Since its conception, high-tech companies have been chasing after the hyperloop reality around the world. This includes Elon Musk’s Boring Company, business magnate, Richard Branson’s Virgin Hyperloop One, and LA-based Hyperloop Transportation Technologies (HTT), an American research company.

HTT has been constructing one of two test tracks in France, ready to convey the first passenger capsule later this year. It had already signed a 150 km Hyperloop system between Abu Dhabi and Dubai, partly expected to be operational in 2020. This agreement is the foundation to eventually run Hyperloop in between the Emirates and Saudi Arabia. Richard Branson announced earlier this year that he had signed an agreement with India’s Maharashtra State government to build Virgin Hyperloop One connecting the distance reaching up to 150 kilometers between two cities, Mumbai and Pune. We may eventually reap the benefits of the Hyperloop bringing the world closer together.

Most Hyperloop companies are developing tubes or tunnels out of steel from which most of the air has been removed. POSCO is also researching the application of steel designed for the Hyperloop while at its refurbished “Steel Gallery” exhibit at POSCO Center, visitors can experience Hyperloop through an interactive wall to learn about the anticipated performances of steel in the near future.

Beating Ground Traffic on a Drone Taxi

CityAirbus’s Drone Taxi underway (Source: Helicopter Newswire)

The opening scene of “Blade Runner 2049” released in October last year features a flying car whirring across the sky. The Passenger, Blade Runner “K” played by Ryan Gosling wakes up from what is a self-driving vehicle, flying him across his journeys. This premise of flying cars is always that one thing common in Sci-Fi movies, even the older version of Blade Runner which hit theaters back in 1982.

Considering its advantages versus overpopulation and hours idling in traffic, this may come away from the silver screen and into our real lives. No less than 19 companies have pursued the competition in commercializing flying cars.

Last May, Uber has teamed up with NASA, announcing its plans to service aerial taxi services by 2023 in LA, Dallas, and Dubai. Uber has signed an agreement with NASA to plan a new air traffic control software for what could be the beginning of establishing a new aerial smart system enabling advanced and efficient infrastructure from up above. Its’ servicing demonstration video reveals the passenger booking her flight through Uber app. Uber has already invested €20 million in flying taxi service in Paris, France. Its high-profile competitor, the Kitty Hawk project backed by Google founder, Larry Page has released its own version of the flying vehicle commercially available for sale.

Other countries such as Dubai and Japan have adopted their own versions of drone taxi services and is expediting its completion and starting launch by 2020. The Japanese government has partnered up with companies such as Boeing, Airbus, and Japanese Airlines and hopes to launch its prototype to be used to light the Olympic flame during the Games hosted by Tokyo in 2020.

Cars with wings especially require utmost safety and lightweighting even more so than most ground-based cars. POSCO’s ultra-high intensity steel sheet produced with advanced Giga Steel will be unequaled in offering such breakthrough technology.

These examined future transportations require steel as its fundamental material. Steel in itself faces constant evolution, not unlike the advancement of transportation as it is unique for both its strength and lightweight. Keeping its endless possibilities in mind, steel’s significance will be proven further in the newer forms of transportation to come.

Huayou Cobalt is one of the world’s biggest mining companies that can produce about 50 percent of the cobalt required for manufacturing lithium-ion batteries worldwide. They also have their own nickel mine in addition to a cobalt mine.

The joint venture for precursor production is made up of 60 percent of investments by Huayou Cobalt that can supply cobalt, nickel and manganese, and 40 percent by POSCO. 60 percent of investments for the joint venture for cathode material production comes from POSCO who owns the high-grade cathode material production technology and 40 percent of investments come from Huayou Cobalt. The joint ventures will be operating production lines for 4,600 tons of precursors and cathode materials a year starting from the second half of 2020.

POSCO and Huayou Cobalt sign agreements for joint ventures in cathode material supply and production.

Through these joint ventures, POSCO can now secure its market position in China by directly manufacturing and selling cathode materials locally. In addition, it can gain a competitive edge by securing a stable supply of not only precursors but also materials such as cobalt, nickel and manganese for POSCO ESM’s cathode materials plant in Gumi. Huayou Cobalt can expand its business in manufacturing and sales of cathode materials in addition to that of raw materials.

As the eco-friendly policies of the world continue to be tightened, the demand for electric vehicles, industrial energy storage systems (ESS) and IT bulk batteries has increased rapidly. Thus, the market for cathode materials, which are essential materials for lithium-ion batteries, is also expected to quadruple from 210,000 tons in 2016 to 860,000 tons in 2020.

Accordingly, the price of cobalt, one of the most expensive materials, tripled in the last two years, followed by the price of nickel and manganese. This explains why a stable supply of materials is essential for profitability.

POSCO’s lithium-ion battery material business is headed for future growth, and is expected to gain increased momentum with the joint ventures for precursors and cathode materials. POSCO completed its carbon lithium plant PosLX at Gwangyang Steelworks last year after 7 years of developing its own proprietary technology of directly extracting lithium in 2010. It is currently under commercial production.

EVs will make up 54 percent of new car sales in 2040. (Source: Electrek)

Even though EVs make up about 1 percent of total new car sales in the U.S., EVs are on a steady, steep path upwards. According to a report by Bloomberg New Energy Finance, EVs will make up 54 percent of new car sales by 2040, and by 2029, EVs will be cheaper to buy than gasoline and diesel-fueled cars.

The figures are significant and will translate into a sharp increase in demand for rechargeable batteries and their materials.

SEE ALSO: Ask an Expert: Electric Vehicles and the Future of the Automotive Market

The Evolution of EV Batteries

Before diving into the juicy details, it’s always helpful to cover the basics. Batteries are made up of 3 main components. The anode, or negative electrodes, the cathode, or positive electrodes and some type of electrolyte through which the electrodes travel to release chemical energy.

A simple battery can be made out of a potato, copper penny and galvanized nail. (Source: Tested)

The first rechargeable battery, lead-acid battery, was invented in 1859 by a physicist named Gaston Plante. Lead dioxide was the cathode material used, and lead was the anode material with a liquid solution of sulphuric acid and water as the electrolyte. The materials were affordable and the battery was applied to many early models of EVs, including early models of the Tesla Model S.

Another widely used battery that came after the lead-acid battery is the nickel-metal hydride (NiMH) battery developed at the Battelle-Geneva Research Center in 1967. Nickel hydroxide was used as the cathode material while a hydrogen-absorbing alloy was used as the anode material. A liquid solution served as electrolytes. The research for NiMH batteries was extensive, and funded jointly by Daimler-Benz and Volkswagen AG. The batteries were also applied to many EV models such as the Toyota Prius, prior to 2015.

The Advent of Lithium-Ion Batteries

The introduction of lithium-ion batteries was a game-changer. Sony first introduced them in 1991, and today, most EVs have them, including the Tesla Model 3. The batteries consist of lithium-cobalt oxide cathodes, graphite anodes and the electrolyte is usually a solution of lithium salt and an organic solvent, though some automakers are experimenting with solid-state electrolytes.

The Tesla Model 3 has a lithium-ion battery. (Source: Green Car Reports)

Compared to its predecessors, lithium-ion batteries have the highest amount of stored energy and specific power, which is kind of like horsepower for electric cars. As a result of improved technology and lower costs, lithium-ion batteries are projected to make up 70 percent of the total rechargeable battery market by 2025, which will be worth roughly USD 112 billion.

Good as Gold

It is estimated that every 1 percent increase of EVs in the auto market will result in an additional 70,000 tons of lithium demand LCE per year.

In 2016, Australia topped the list for the most lithium produced with 14,300 metric tons. China and Zimbabwe are also top contenders producing 2000 and 900 metric tons in 2016, respectively. Then, there are the South American countries of Argentina, Chile, and Bolivia, also referred to as the “lithium triangle,” and home to 75 percent of the world’s lithium supply.

Workers at a brine pool at the Rockwood Lithium Plant on the Atacama salt flat. (Source: Reuters)

Does that mean the world has enough lithium to fuel the cars of tomorrow? The answer is yes, but there aren’t enough mines to produce them. In order to prevent environmental damage and the exploitation of unprotected workers, lithium producers have to get smart about lithium mining and production.

[clickToTweet tweet=”It is estimated that every 1 percent increase of EVs in the auto market will result in an additional 70,000 tons of lithium demand LCE per year- Visual Capitalist” quote=”It is estimated that every 1 percent increase of EVs in the auto market will result in an additional 70,000 tons of lithium demand LCE per year- Visual Capitalist” theme=”style6″]

POSCO’s Lithium Production  

Starting in 2010, POSCO and the Research Institute of Industrial Science & Technology (RIST) teamed up to develop a chemically based lithium extraction technology. The innovation cut down extraction time from up to 18 months down to between 8 hours and 1 month, delivering a purity rate of 99.9 percent. The recovery rate of lithium also increased to over 80 percent. POSCO is the world’s first corporation to commercialize the technology.

SEE ALSO: Lithium Rocks: POSCO at Forefront of a Green Energy Future

POSCO CEO Kwon Ohjoon holds lithium on his visit to PosLX, POSCO’s battery production factory in Korea.

It’s also at the heart of the lithium triangle. POSCO currently operates facilities in Chile’s Maricunga Salt Lake, Argentina’s Cauchari Salt Lake and Argentina’s Pozuelos Salt Lake, which alone will boost POSCO’s annual lithium production to 2,500 tons. POSCO also opened its first battery production plant in Korea earlier this year.  

The future of EVs is promising thanks to advancements being made in electric batteries, and there’s a lot at stake for the health and well being of future generations. Increasingly, the availability and costs of EV battery materials will play a vital role in market outcomes and widespread EV adoption. It is vital for companies like POSCO to provide abundant, sustainable and cost-friendly EV battery materials so automakers can continue to enhance the batteries of tomorrow’s cars.

Cover photo courtesy of Quartz.

POSCO CEO Ohjoon Kwon visits the POSCO Chemtech anode material factory and is seen examining the cathode plate coating used in secondary batteries.

“The demand for mid to large-sized secondary cell batteries for electric vehicles and energy storage systems (ESSs) is rapidly growing,” CEO Kwon said. “We will build a smart factory to produce the world’s best anode materials and secure future competitiveness in the battery material business.”

Kwon observes the anode reheating process of the production line completed last July.

POSCO Chemtech has expanded its production capacity to 6,000 tons per year through technological development and investment, but with the newly announced plant, it will have the capacity to produce 30,000 tons per year with over KRW 200 billion in sales.

Kwon has been working with POSCO Daewoo and POSCO E&C in order to increase the competitiveness of the group’s non-steel division and has also been involved with the “Innovation POSCO Project”, an initiative aimed to enhance affiliates’ competitiveness.

Kwon and other POSCO executives learn about the current status of anode materials production at POSCO Chemtech.

POSCO also supplies cathode materials for secondary cell batteries through its affiliate, POSCO ESM. In February, POSCO completed construction of PosLX, its lithium production plant, which produces lithium carbonate from lithium phosphate extracted from wasted rechargeable batteries.

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S&P forecast that POSCO would maintain its EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) at 20%, which is higher than that of its global competitors. This is, in large part, a result of improved performance in sales (due to the increased sales of high valued-added products), its excellent operating efficiency, and a decrease in the oversupply of steel in the region.

S&P added that POSCO is expected to maintain its adjusted debt-to-EBITDA ratio at 2.5 – 3.0 over the next two years by creating a stable free cash flow and continuously reducing borrowings. As a result, S&P changed POSCO’s financial risk profile from “significant” to “intermediate.” In fact, over the past few years, POSCO improved its adjusted debt-to-EBITDA ratio from 3.8 in 2014 to 2.9 in 2016 by implementing various restructuring measures, including the sale of non-core assets.

S&P also predicted that its affiliate, POSCO E&C, would see its sales performance improve from last year by reinforcing its efforts to reduce costs.

In the midst of challenges such as a global economic recession and industry oversupply, POSCO has devoted a significant amount of effort to reinforce the competitiveness of its main business while improving its financial health and profitability. As a result, its consolidated operating profit increased by 19% YoY with consolidated sales coming to KRW 53.0835 trillion and its operating profit coming to KRW 2.8443 trillion.

Increased sales of POSCO’s World Premium Products, its high value-added products such as PosMAC and PosCoZy, along with corporate-wide efforts to improve profitability and reduce costs, led POSCO’s separate operating profit to increase by 17.7% YoY. As a result, its operating margin reached 10.8%, the first double-digit operating margin since 2011. POSCO’s stock price also rose by 55% compared to the first half of 2016. Moody’s, an international credit rating agency, also upgraded its outlook for POSCO’s “Baa2” credit rating from negative to stable last October.

POSCO continues to take steps towards maintaining its position as one of the world’s most competitive steelmakers. Since being nominated to serve a second term as CEO, Ohjoon Kwon has committed to strengthening POSCO’s financial outlook and secondary business growth. As part of its non-steel business ventures, POSCO recently completed the construction of the lithium factory at Gwangyang Steel Works and also announced its plan to invest KRW 300 billion in the cathode material business for secondary batteries.

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