As competition to develop all-solid-state battery technology has become more intense worldwide, POSCO Group is also actively researching and developing raw and key materials for all-solid-state batteries. POSCO N.EX.T Hub is where R&D is carried out. So! Announcer Hyun-jung Choi went to POSCO N.EX.T Hub Senior researcher Oh-min Kwon, an expert in all-solid-state batteries, and talked about all-solid-state batteries, which become more fascinating as you learn more about them. Anyone curious about the all-solid-state battery core material business that the POSCO Group is preparing should pay close attention. It starts right now!

What is the difference between all-solid-state batteries and lithium-ion batteries?

Do you know what type of rechargeable battery is most commonly used in electric vehicles today? It is a lithium-ion battery. Among the components of lithium-ion batteries, the electrolyte, which helps lithium ions move smoothly between the cathode and anode, is made of liquid. Since the liquid electrolyte contains a flammable organic solvent, there is a high risk of fire or explosion in high-temperature environments or external impact situations.

The separator acts as a shield that prevents direct contact between the cathode and anode, and the lithium-ion battery separators are made of polymer, which is the main material of vinyl bags that we see everywhere in our daily lives. Just as vinyl bags shrink and disappear when heated, the lithium-ion battery separator can also be damaged when heated, and it causes a short circuit* between the cathode and anode.

*Short circuit: A phenomenon in which two points in an electric circuit are connected due to poor insulation between the two points

All-solid-state batteries replace the liquid electrolytes used in conventional lithium-ion batteries with a solid electrolyte. Unlike the polymer separator of a lithium-ion battery, which is made of polymer with low rigidity, the solid separator is made of ceramics with high rigidity. Moreover, it is non-volatile and has a high flash point, so it maintains its shape well even when heated, which keeps it safe from fire.

Improved safety simplifies the heat management system, such as the external case or cooling device in the battery, so it features higher energy density in the battery pack unit. Improved energy density can significantly increase the range of electric vehicles driving on a single charge. In addition, it makes it possible to use materials such as lithium metal anodes, silicon anodes, and silver/carbon nanocomposite anodes, which were previously unusable due to high risk in lithium-ion batteries. The energy density is expected to increase by nearly 10 times compared to existing graphite anode materials. That explains why all-solid-state batteries have become the next-generation batteries for the transition from internal combustion engine vehicles to electric vehicles.

For those who cannot understand by explanation alone, Senior researcher Kwon brought all-solid-state battery samples produced by the POSCO Group and conducted a performance test. First, before we see the results! Let’s look at the specifications of POSCO Group’s all-solid-state batteries more closely.

Specifications of POSCO Group’s all-solid-state batteries

He connected the cathode and anode to a battery that looked like a thin piece of paper at first glance, made it light up, and then cut the surface of the battery with scissors. Will the light still be on even if it is cut?

Like magic, the light does not go out even when the battery is cut in half. The secret behind this is that the solid electrolyte of the all-solid-state battery, with high rigidity, acts as a separator and remains intact even with external shocks. If the inside of the battery was filled with a liquid electrolyte, the separator would have been damaged and caused the electrolyte to leak and be oxidized, and the battery would eventually stop functioning properly. That is why everyone recognizes all-solid-state batteries to be the next-generation battery leader.

So, what are the types of solid electrolytes for all-solid-state batteries? The solid electrolytes used in all-solid-state batteries are divided into three types: sulfide, polymer, and oxide. Sulfide solid electrolytes have the highest potential for commercialization in electric vehicles since their relatively soft characteristics form a wide interface between the electrode and electrolyte, resulting in high lithium-ion conductivity. Therefore, it has gained the attention of many companies worldwide.

Three key raw materials are needed to make a solid electrolyte: lithium sulfide, phosphorus pentasulfide, and lithium chloride. These three raw materials are mixed evenly to form an argyrodite (a rare mineral of silver, germanium, and sulfur) by synthesis. What is important is for the synthesis to form the appropriate solid electrolyte particle size. The solid electrolyte is completed by controlling the particle size through the crushing* and disintegration** processes.

*Crushing: The process of breaking a solid object into small pieces
**Disintegration: The process of separating clumped particles into the original individual particles

Status of POSCO Group’s all-solid-state battery material business

Did you know that POSCO Group is focusing its business on sulfide solid electrolytes to take a leading position in the all-solid-state battery market? POSCO Holdings is developing high-ion conductive materials and technology to form moisture-stable solid electrolytes. The internal testing of the prototype showed that it can achieve a battery performance equivalent to that of lithium-ion batteries.

In February 2022, it acquired a 40% equity share of Jeongkwan Co., Ltd., a display material and part specialist, to establish a joint venture called POSCO JK Solid Solutions, and completed the construction of a factor capable to producing 24 tons of sulfide-based solid electrolyte per year. The plant recently applied a new process technology and is preparing a phased expansion of the production capacity to 7,200 tons. It is currently conducting an all-solid-state battery test with various customers.

▲POSCO Group’s lithium production demonstration plant and brine storage facility in Argentina.

POSCO Group is the only Korean company that produces lithium brine, ore, hydroxide, and carbonate. Moreover, POSCO Group is actively researching and developing high-value-added lithium compounds. Since lithium compounds such as lithium sulfide and lithium chloride are essential to produce solid electrolytes, POSCO Group, which has lithium production infrastructure, is considered to have considerable competitiveness in the sulfide-based electrolyte business.

All-solid-state batteries will overcome the limitations of lithium-ion batteries, and solid electrolyte is their key material. In addition to solid electrolytes, POSCO Group also has the competitiveness to mass-produce lithium metal anode materials, which are important materials for all-solid-state batteries. With our differentiated competitiveness, we plan to leap forward as an innovative company in the rapidly changing rechargeable battery material market. If you want to know more, please watch the full version of the video on YouTube.

▼Check out POSCO Group’s solid electrolyte technology competitiveness in the video!

Save your valuable time. Watch a short version of a long YouTube video in just 3 minutes! In this episode, join us in discovering POSCO Group’s future roadmap as it emerges as a global top-tier player with the domestic production of cathode and anode materials, the key elements of rechargeable batteries.

POSCO has recently received widespread attention for its impressive growth and innovation in identifying future demand industries. In particular, POSCO Group has emerged as a formidable force both at home and abroad in cutting-edge technologies such as mobile devices, electric vehicles, solar panels, and renewable energy storage systems. In Korea, only POSCO Future M is producing both cathode and anode materials, which are important materials that determine rechargeable battery performance, and has established itself as one of the major suppliers of high-quality rechargeable battery materials and is producing both anode and cathode materials.

Today, let’s look at the future of batteries with Senior Researcher Park Jae-beom at the POSCO Research Institute, which is focusing on anode materials that influence battery lifespan and charging speed. Join us as we explore POSCO Group’s blueprint that will shape the future of batteries. Let’s begin now!

Graphite: the core mineral that shapes the performance of electric vehicle batteries

As nations worldwide intensify efforts to reduce carbon emissions, the traditional automotive industry is undergoing a profound metamorphosis. It is shifting away from its reliance on internal combustion engines, pivoting to the era of electric vehicles, and embracing eco-friendly energy sources. Rechargeable batteries are at the center of electric vehicle production. A rechargeable battery consists of four materials: a cathode, an anode, an electrolyte, and a separator. It is no exaggeration to say that the cathode material, which determines the driving distance of an electric vehicle by increasing the energy density, and the anode material, which affects the charging speed and life of the battery, determine the performance of rechargeable batteries.

Lithium-ion batteries, commonly found in electric vehicles, produce electricity with the chemical exchange of lithium ions between the cathode and anode. The anode stores and releases lithium ions received from the anode material. In other words, battery performance hinges on the anode’s performance, and its ability to efficiently store and release lithium ions directly affects energy density and charging speed. Recent emphasis has been placed on developing anodes with heightened energy density, swift charging capabilities, and robust durability, to match the importance given to cathodes.

The primary material of the anode is graphite, much like the substance found in everyday items such as pencil leads or mechanical pencil refills. Metal is also used as a production material for anode materials, but graphite-based anodes dominate the market due to their affordability and high stability, and account for approximately 90% of anode production. Therefore, the majority of anode materials currently used in the market are made of either natural or synthetic graphite.

Sole provider in Korea! POSCO Group produces both natural and synthetic graphite

Natural graphite is obtained from mines as graphite ore, crushed to remove impurities, and refined to increase its purity in a process known as beneficiation. The resulting raw graphite undergoes various processes to be shaped into spherical graphite. Spherical graphite is coated with pitch and subjected to high temperatures in a process called calcination. This coating serves to encapsulate the graphite surface and enables the battery to withstand high temperatures and improve charging and discharging efficiency. Finally, the graphite undergoes size grading and iron removal, culminating in the production of natural graphite anode material with a purity approaching 99.9%.

Artificial graphite, used as an anode material, is produced from coke, a byproduct of steel production, rather than directly mined from graphite. Coke undergoes purification to remove impurities, followed by high-temperature treatment, resulting in needle coke formation. The needle coke is then pulverized, subjected to high temperatures for graphitization, and undergoes coating and iron removal processes to produce artificial graphite anode material.

The naturally derived graphite anode material and the synthetic graphite anode material, produced by different manufacturing processes, complement each other. The natural graphite anode material offers the advantage of large lithium-ion storage capacity at a low cost, while the synthetic graphite anode material is advantageous in terms of lifespan, output, and stability. For these reasons, a majority of rechargeable batteries for electric vehicles use a combination of natural and synthetic graphite.

POSCO Future M is the only Korean company that produces both natural and synthetic graphite anode materials. Natural graphite is planned to be secured from the Mahenge and Molo mines in Tanzania and Madagascar, which are invested by POSCO Holdings and POSCO International, in addition to existing suppliers. Synthetic graphite, on the other hand, has been successfully localized with the procurement of raw materials, needle cokes, by its subsidiary, POSCO MC Materials. Furthermore, through R&D collaboration with POSCO Holdings, POSCO Future M has developed a low-expansion, long-life natural graphite anode material that combines the advantages of synthetic and natural graphite.

Recently, China, responsible for approximately 70% of global graphite production, announced plans to tighten control over its graphite exports. Amidst the electric vehicle market’s expansion, China’s recent announcement of full control over graphite exports has dealt a significant blow to battery manufacturers worldwide. This declaration comes at a time when the anode material sector is experiencing annual growth rates of more than 20%. While this poses challenges for battery manufacturers worldwide, POSCO Group’s competitive position in the battery market is increasingly noteworthy. POSCO has been strategically advancing its anode material business to bolster self-reliance and reduce reliance on China since 2010. In the future, POSCO Group is expected to enhance its supply chain capabilities in the anode material sector and increase production autonomy.

POSCO Group leads battery industry with “full portfolio” development

Establishing a production system for silicon anode materials with a capacity of 35,000 tons by 2030

POSCO Group’s strategy to strengthen battery performance with anode material technology is expected to continue to develop. With the global demand for high-performance electric vehicles, batteries also need high-performance materials, leading to increased attention to various anode materials. Among them, you can mention silicon anode materials.

Silicon anode material has a nearly tenfold higher capacity per unit weight compared to graphite-based alternatives, which has the advantage of innovatively increasing electric vehicle range and facilitating rapid charging. However, it comes with challenges. The higher cost and structural instability of silicon due to volume expansion during charge and discharge are significant obstacles to overcome.

Due to these technical challenges, silicon anode material is currently not used exclusively in electric vehicle batteries. Instead, it is blended with graphite-based anode materials at a ratio of 4-5%. Nevertheless, silicon anode material is gaining attention as a potential solution to improve electric vehicle driving range and charging performance. Some in the industry foresee increasing the proportion of silicon in anode materials from 5% to 30% by 2030 with the development of technologies that enhance material structure stability. The silicon anode material market is expected to grow at an annual rate of 34%.

Consequently, POSCO Group is strategically consolidating its research efforts internally to drive the development of a production ecosystem for silicon anode materials, the cornerstone of next-generation products. Within this framework, POSCO Holdings has established its subsidiary, POSCO Silicon Solution. Furthermore, with the combined expertise of POSCO N.EX.T Hub (Future Technology Research Institue) and POSCO Future M, the Group plans to work together to build a production infrastructure capable of yielding 35,000 tons of silicon anode materials by 2030.

Harnessing its infrastructure, it will mass-produce next-generation lithium metal anode materials

In addition to silicon anode material, which boasts more than 10 times the energy density of graphite, another promising next-generation anode material is lithium metal anode material, which is evaluated to have even greater potential. Lithium is the lightest metal on Earth and holds the key to substantially reducing battery weight. Lithium metal anodes are hailed as the pinnacle of the next-generation anode material market because of their potential to enhance the fuel efficiency of electric vehicles.

POSCO Group has an Argentine lithium brine, which is an ideal environment for extracting high-purity lithium with minimal impurities to use as an anode material. Furthermore, it has the world’s best lithium refining technology. In addition, the independent technology accumulated with roll-to-roll processing, which produces thin lithium layers with wider widths, provides an economical and efficient solution for lithium metal anode production. POSCO Group will steadily develop these technologies to become a company that produces economically feasible lithium metal anode materials for next-generation batteries.

▼ Check POSCO Group’s anode material production competitiveness in video ↓

POSCO Group has the infrastructure and strength to produce a wide range of electrode materials, including natural and synthetic graphite, low-expansion natural graphite, silicon anode materials, and lithium metal anodes. In the future, the Group aims to establish a full portfolio to lead the electrode materials market. Stay tuned for our continued growth and advancements!

Well aware of the crucial importance of secondary batteries, POSCO has been prioritizing the development of core materials for secondary batteries as a new growth business for years. Despite its ubiquitousness, the public remains mostly unfamiliar with the term. POSCO Newsroom reports.

What’s a Secondary Battery? Is There a ‘First’ Battery?

▲Components and the end product of a lithium-ion battery, which is a secondary battery. The areas highlighted in blue are where POSCO is focusing on as new growth areas for the future.

The answer is YES. It’s called primary battery. Simply put, a primary battery is used for clocks, remote controls, etc. Once used up, these batteries can’t be used again — an alkaline battery is the most common type of primary battery.

Unlike primary batteries, a secondary battery can be charged repeatedly. It consists of a cathode, anode, electrolytes, and a separator. Electricity is generated through the electrical flow of lithium-ion via electrolytes between cathode and anode material.

When a battery is charging, electrons flow from cathode to anode through the separator. When a battery is discharging, vice versa: electrons flow from anode to cathode. Lithium-ion batteries are one of the most common types of secondary batteries, considered essential for electric vehicles, eco-friendly thus crucial mode of transportation for the future.

What are Cathode and Anode Materials?

▲Anatomy of a Lithium-Ion Battery

Within POSCO Group, POSCO ESM is currently producing cathode materials. Despite its relatively late start, POSCO ESM stands comparison with the world’s top secondary battery active material companies in terms of technology. In recent years, POSCO ESM has become the first company in the world to mass-produce Gradient-NCM active material that contains more than 80% of nickel.

Anode materials generate electricity by storing and releasing the lithium that initially came from the positive terminal. As of now, POSCO ChemTech is the only manufacturer in Korea who mass-produces anode materials. Just this November, POSCO ChemTech completed the construction of the first anode material factory, also wrapping up the first phase of its plan by finishing the first four production lines by the second half of 2019. Through this accomplishment, POSCO ChemTech secured production capacity of 20,000 tons per annum. It plans to further expand to ten production lines, with a view to subsequently boosting the production capacity to 50,000 tons per year.

Earlier this month at its board meeting, POSCO ChemTech agreed on a merge with POSCO ESM for improved synergy between two groups’ energy materials businesses. POSCO ChemTech and POSCO ESM, who are respectively in charge of anode and cathode production, will unify as an operation headquarter for energy materials — bringing together dispersed business structures for cathode and anode materials. The merger between the two groups is expected to crystallize by April next year after the board’s final approval in February 2019.

Through the merger, POSCO ChemTech is set to step up on its effort to develop products that will lead the next generation. The merger will also augment the company’s R & D and marketing capacity, which will in turn help reinforce POSCO ChemTech’s competitiveness by reducing production costs and expanding sales effort.

Lithium-Ion Battery Advantages
As opposed to secondary batteries, primary batteries can’t be reused. Once used up, they should be discarded in which circumstance more resources are wasted to produce new batteries. There is also an additional disadvantage in that chemicals inside primary batteries can incur further environmental pollution. Secondary batteries, on the other hand, can be used for 500 to 2,000 cycles, thus more economical and environmentally sustainable.

Lithium-ion battery, one of the most typical form of second batteries, is known for its durability. Compared to other types of batteries with the same capacity, a lithium-ion battery can be produced in smaller weights and volumes. It also doesn’t carry environmental toxins such as cadmium, lead, and mercury. Furthermore, not only does lithium-ion battery have no memory effect — aka lazy battery effect — that reduces the charge capacity, it also generates more power than regular batteries.

Global Secondary Batteries Market and Where POSCO Stands

▲Production line for cathode material – POSCO ESM Factory in Gumi.

Lithium is an essential material for electric vehicles and energy storage system (ESS). In 2017, the demand for lithium was at 201,000 tons. By 2025, it’s expected to surge threefold, to 700,000 tons.

Lithium has enormous growth potential. POSCO’s endeavor for the last eight years brought them to the early stages of lithium commercialization. In 2010, POSCO became the first developer of a direct extraction technology before any other companies in the world. From 2013 to 2015, it successfully test-produced lithium in Chile and Argentina. In 2016, it built a 2,500-ton demo plant in Gwangyang Works — and since February last year, it’s producing lithium carbonate.

This year, POSCO successfully created lithium hydroxide, which is mainly used for high-performance electric vehicle batteries. POSCO’s accomplishment is especially meaningful because process control for lithium hydroxide is notoriously complicated. With POSCO’s successful localization of lithium hydroxide, Korean companies who had been exclusively relying on imports, can now be supplied with domestically produced high-grade lithium hydroxide, thus boosting the competitiveness of Korea’s lithium secondary battery industry.

┃Lithium: The Core Material for Secondary Batteries

(Source: Flickr)

Amongst all the metals, lithium belongs to the lightest alkali metal with an atomic number of 3, which means it is the third lightest substance in the world.

Recently, lithium is being identified as the rice of the future industry, or the ‘New White Oil’ because the secondary battery has emerged as a future growth industry. In addition to portable electronics like mobile phones and laptops, lithium is garnering industry’s attention as the essential material for making secondary batteries that are crucial for electric vehicles and robotics.

Compared to regular batteries, lithium-based secondary batteries produce higher voltages with less weight. The voltage of a standard battery is at about 1.3 to 2 volts, whereas a lithium-containing battery generates 3-plus volts of electricity. In addition, it is smaller and lighter than other metal ions, resulting in high energy density per unit.

┃POSCO’s Choice for the Future Fuel

▲‘Hombre Muerto’: a salt lake in Northwestern Argentina where POSCO secured the mining rights.

POSCO initially pursued a lithium business project based on a lithium extraction technology — from salt brine, but a delay in securing a salt lake posed as a new challenge. However, POSCO successfully turned this crisis into a unique opportunity, by successfully developing two innovative technologies: producing lithium from discarded secondary batteries, and extracting lithium from the ore lithium concentrate.

In October this year, POSCO also completed a facility with a capacity to manufacture lithium ore. Ore-based lithium production became a reality. From 2021, POSCO will produce lithium from a salt lake in Argentina where POSCO acquired the mining rights.

By securing the world’s only lithium production system utilizing discarded secondary batteries, lithium ore, and salt lake, POSCO is expected to produce a total of 55,000 tons of lithium per year, an amount that can produce batteries for about 1.1 to 1.2 million electric cars.

Just last month, POSCO announced ‘Top 100 Reform Challenges’ to commemorate the 100th day of the CEO Jeong-Woo Choi’s inauguration. POSCO has been leading the second batteries market by developing customized products for its clients by integrating cathode and anode material businesses and by creating a research center for secondary battery materials. By 2030, the company is gearing up to grow it into a 1.5 billion USD (an equivalent of 17-trillion KRW) business, dominating 20% of global market share.

Furthermore, POSCO ChemTech plans to expand its business areas into high value-added carbon materials by establishing a needle coke production plant, which will become the raw material for anode materials and electrodes, by utilizing the byproducts generated during the steel making process.

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.

Smart factories are bringing AI, IoT and Big Data to the manufacturing industry.

#1 How Smart Factories are Changing the Manufacturing Industry

The Fourth Industrial Revolution is bringing AI, IoT and other automated technologies into people’s lives and changing the way they live and interact with one another. It is also bringing about change in the manufacturing industry as more companies embrace smart factories to further enhance efficiency, performance and safety. Take a deeper look at how smart factories are reinventing the manufacturing industry.

SEE ALSO: How Factories Produce Steel- the Smart Way

POSCO GIGA STEEL also offers electric vehicle manufacturers a lightweight material solution.

#2 POSCO GIGA STEEL Increases Strength, Improves Safety in Autos

This year, POSCO GIGA STEEL set a new, industry standard for strength and formability for auto steel. The advanced high-strength steel (AHSS) is an automaker’s dream come true as it falls into the strongest category of steel commercially available today. Plus, its lightweight property makes it the perfect solution for manufacturers trying to design safe, high-performing and sustainable vehicles.

SEE ALSO: Ask an Expert: Has Steel Achieved Its Peak in Lightweighting?

Lithium-ion batteries are found in some of the most popular devices available today. (Source: BGR)

#3 POSCO’s Innovation Shapes the Ever-Growing Lithium Market

POSCO is the world’s 5th largest steel producer, but it’s got more up its sleeves than just steel. This year, POSCO developed game-changing technology that extracts lithium from water in just 8 hours to one month. Traditionally the task takes anywhere from 12 to 18 months. To add, the new technology can achieve a purity rate of 99.9 percent and increases the lithium recovery rate to over 80 percent.

Lithium is a central component in rechargeable batteries for electronics such as smartphones, laptops and most importantly, electric vehicles (EVs). Heading into 2018, POSCO is well-positioned to be an industry leader in a rapidly-growing market for EV batteries.

SEE ALSO: The Fuel of Tomorrow: Mining Lithium for Tomorrow’s Cars

POSCO CEO Kwon Ohjoon fires up Pohang Blast Furnace No.3

#4 POSCO Gets “Smart” with Pohang Blast Furnace No.3

In June, one of POSCO’s oldest and the world’s 5th largest blast furnace got a makeover with some added AI. After undergoing 102 days of repairs, Pohang Blast Furnace No.3 came back much bigger with an expanded furnace volume of 5600㎥, compared to its original volume of 3795㎥ from its beginnings in 1978. Plus, Pohang Blast Furnace No.3 now has smart sensors to monitor operations and detect malfunctions or accidents before they happen.

SEE ALSO: How to Make Steel with an Old(ie but Goodie) Blast Furnace

Ajay Telrandhe in Quality Assurance and Manish Kochar & Chetan Waghchoure in Sales talk to the Steel Wire.

#5 Ask an Expert: POSCO Leads India’s Growing Automotive Steel Market

POSCO Maharashtra is POSCO’s leading subsidiary. Three of their employees gave the Steel Wire an insider’s look into the company’s success, despite a challenging market environment and government restrictions. The team in India implemented positive changes in the company’s steel quality, production processes and customer service to become a leading solution-provider for their automotive partners.

SEE ALSO: Revving Up for Growth: India’s Automotive Market is In Full Gear

EVs, autonomous vehicles and shared mobility will drastically change the auto industry. (Source: Electrek)

#6 Ask an Expert: Electric Vehicles and the Future of the Automotive Market

Stephen Zoepf, executive director at the Center for Automotive Research at Stanford University, was the first speaker at POSCO’s 2017 Global EV Materials Forum. Zoepf shared his vision of what the future automotive market will look like and its implications for car manufacturers, suppliers and drivers. According to research, 60 percent of the cars in the U.S. will be running on electric batteries by 2030, and those cars will mostly be part of a shared mobility service. Traditional ways of car production, distribution and consumption will undergo massive change and companies will have to find ways to stay competitive in the new market dynamics.

SEE ALSO: The Forgotten Fleet: Looking Back on Early Electric Vehicles for a Better Future

Steel dresses from Naim Josefi’s 2017 F/W GANGS collection. (Source: Naim Josefi)

#7 Ask an Expert: Fashion Forward with Steel

Fashion designer Naim Josefi opened new possibilities for steel application with his 2017 F/W GANGS collection which included dresses made of elaborate steel sequins and laser-printed jeans. He is also known for his 3D-printed high heels that provide the perfect fit. The artist has a passion for fusing technology into his work and finding more sustainable ways to create beautiful clothes and says he will continue to use steel as a high-tech, fashion material.

Heading into a new year in 2018, the Steel Wire promises to be the best source of steel industry news and continue to provide exclusive, insightful and interesting stories.

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.

More than 290 people attended the presentation ceremony, including Ohjoon Kwon, chairman of the POSCO TJ Park Foundation; Chang-hee Kang, former chairman of the National Assembly; Hong-goo Lee and Deok-soo Han, former prime ministers of Korea; Gong-il Sa, chairman of the Institute for Global Economics; Nak-in Sung, president of Seoul National University; and prize winners from previous years.

Ohjoon Kwon, POSCO CEO and chairman of the POSCO TJ Park Foundation, said, “For the past 10 years, the POSCO TJ Park Prize has been a way to recognize those who tackle the never-ending challenges of today’s world. In the next 10 years, we aim to make the POSCO TJ Park Prize an even more noteworthy honor.”

This year, the POSCO TJ Park Prize was awarded to the following honorees:

• Excellence in Science: Prof. Jong-heun Lee, Department of Materials Science and Engineering at Korea University
• Excellence in Education: Attached Middle School at Kyungpook National University
• Excellence in Community Development & Philanthropy: Jimmy Pham of Vietnam, CEO of KOTO
• Excellence in Technology: Myeong-hwan Kim, head of the Battery Research Institute at LG Chem.

POSCO CEO Ohjoon Kwon (far right) stands with recipients of the POSCO TJ Park Prize. The award recognized their noteworthy achievements in science, education, community development, and technology.

The Excellence in Technology award was added this year to highlight how technology has contributed to the renewal of the Korean economy. Eligible candidates for this category include persons or organizations that contributed to national and global market development.

Prof. Jong-heun Lee of Korea University, winner of the TJ Park Science prize, was honored for his work on the oxide nano hierarchical structure in which nano building blocks are regularly self-assembled, and the p-type oxide semiconductor, which has a high level of catalytic activity that allows for gases to be detected quickly and selectively. His achievements are expected to be widely utilized in various areas such as safety, environment, medical science, and IoT.

Kyungpook National University Attached Middle School, winner of the Excellence in Education prize, was awarded for its model of creative public education. Unlike a typical learning environment, the middle school introduced project-based learning in 2012, which allowed students to switch roles with teachers and also collaborate with one another on a deeper level.

Jimmy Pham, winner of the Excellence in Community Development and Philanthropy prize, established KOTO (Know One, Teach One), the first social enterprise in Vietnam. For 17 years, the organization has been giving at-risk youth a chance to stand on their own by teaching various life-skill classes.

Myung-hwan Kim, head of the Battery Research Institute at LG Chem, received the foundation’s very first Excellence in Technology prize. Kim began to oversee battery R&D in 1996 when the secondary battery business was first starting to become active. Through much trial and error and over 20 years of experience in the field, Kim successfully developed the first lithium-ion battery for electric vehicles. He is considered to have greatly contributed to making Korea a leader in the secondary battery industry.

Chang-hee Kang, former chairman of the National Assembly, delivered a congratulatory address, saying, “I would like to thank POSCO for contributing not only to the development of science and technology, but also for actively recognizing scholars and citizens who made a great impact in their respective fields.”

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POSCO has been ranked as the world’s most competitive steelmaker for seven years in a row. It has remained competitive in part by focusing on its World Premium Products, which offer advanced steel solutions for their customers. POSCO has also put extensive effort into maximizing its non-steel technologies and products to find new growth in non-steel sectors. In addition, POSCO has been a leader in innovating its own manufacturing processes, incorporating advanced AI and IoT technologies into its smart factories. POSCO has also remained committed to not only growing its non-steel secondary businesses, but advancing upon existing technologies to create new and eco-friendly production methods.  Below we take a closer look at how POSCO has continued its work to innovate and stay competitive.

POSCO Expands Lithium Manufacturing Business

Amid the rising demand for rechargeable lithium-ion batteries used in smartphones, laptops, and electric vehicles, POSCO has been working on proprietary technology for lithium extraction. Earlier this year, POSCO opened Korea’s first lithium plant, PosLX, and commercialized the production of lithium carbonate from rechargeable batteries after 7 years of development.

From left to right: Jae-chun Song, chairman of Gwangyang City Council, Hyun-bok Jeong, mayor of Gwangyang, Gi-jong Woo, deputy governor of South Jeolla Province, POSCO CEO Ohjoon Kwon, Ung-beom Lee, president of LG Chem and Nam-seong Cho, president of Samsung SDI who can be seen pressing symbolic buzzers to show that the plant is now online.

The PosLX Plant is expected to produce 2,500 tons of lithium carbonate per year using a new eco-friendly technology, which is enough to manufacture about 70 million laptop batteries. This output will supply POSCO’s battery making partners LG Chem and Samsung SDI, as well as POSCO ESM, a subsidiary that produces cathodes for secondary batteries.

POSCO incorporates AI into Smart Factories

POSCO is also breaking through technical barriers by designing smart factories connected through IoT technology and artificial intelligence (AI) that produce higher quality products with less waste. POSCO has also begun incorporating advanced AI technology into its smart factories in order to more efficiently manufacture automotive steel.

Smart factories operate autonomously as the machines talk to each other through sensors – reducing faulty products and waste.

In particular, the ‘Smart Solution for Coating Weight Control Based on AI‘ technology uses an automated control technology that predicts the coating weight in real time and accurately meets the target coating weight. When coating weight is controlled manually, quality deviates depending on the skill level of the worker, which inevitably results in significant amounts of wasted zinc. However, when it is automatically controlled by AI, the quality of POSCO’s automotive coated steel can be enhanced while production costs are decreased. These new automated processes have also helped increase work efficiency and productivity with workers.

Also, CEO Ohjoon Kwon recently visited Siemens in Germany and GE in the U.S., both of which are known to have successfully operated advanced smart factories to observe how other companies have implemented highly sophisticated smart factory models. Through close cooperation with POSCO’s major affiliates such as POSCO E&C, POSCO Energy, and POSCO ICT, Kwon aims to embrace smart technology and reorganize POSCO’s entire business structure (Smart Factory, Smart Buildings & Cities, and Smart Energy).

POSCO’s Thailand CGL, Southeast Asia’s First Automotive Steel Sheet Plant

Faced with sluggish growth due to the oversupply from China and a decline in steel demand, POSCO has been looking to expand sales in new markets. In a bid to become the world’s largest steel provider for automobiles, POSCO completed its Thailand CGL (Continuous Galvanizing Line) in 2016. The plant has an annual production capacity of 450,000 tons and incorporates some of the most advanced AI technologies in its smart factory system.

In addition to being one of the strongest automotive production bases in Asia, Thailand is also the center of the consumer-electronics industry in Southeast Asia.

With the newly established automotive steel plate plant in Thailand, POSCO’s global volume will reach over 9 million tons in 2017 and more than 10 million tons per year starting in 2018. The automotive steel sheets manufactured by the facility will be supplied to global auto parts companies and carmakers operating in Thailand including Toyota, Nissan, and Ford. Despite the increase in competition from other steelmakers, POSCO aims to become a market leader through building strategic partnerships with global automakers operating in the country.

POSCO CEO Ohjoon Kwon and Deputy Prime Minister and Minister for Foreign Affairs Tanasak Patimaprakorn shake hands at hands at Thailand CGL.

As cities around the world get more crowded, urban dwellers are facing more and noisier neighbors. To help combat this problem, POSCO introduced PosCozy in 2016, a unique flooring system that combines manganese (Mn) Z-clips with continuous galvanized steel plates that greatly reduce impact noise, save space, and lower costs (product video).  

Unlike conventional flooring that uses non-steel materials such as styrofoam insulators and rubber buffer materials, POSCO’s floor plates are developed by combining high Mn steel Z clips – a material that is 4 times more vibration-resistant than general steel – giving it the ability to reduce noise between floors. PosCozy is able to reduce the sound of typical walking from 50dB to just 40dB, while impact sounds are lowered from 58dB to 38dB.

PosCozy is the world’s first high manganese steel floor plate with first-class floor noise reduction.

PosCozy is the world’s first high manganese steel floor plate with top quality floor noise reduction. It is also the first flooring system to receive the highest rating in sound insulation from Korea’s industrial rating agency.  Due to its unique and superior qualities, PosCozy won the prestigious Jang Young Sil Award in 2016.

POSCO’s High Manganese Steel Used in the World’s Largest LNG-Fueled Bulk Carrier

Due to the rising number of shipbuilding orders for large-sized liquefied natural gas (LNG) carriers, there has been a shortage of nickel,  requiring new and innovative solutions to construct LNG-fueled ships. In order to address these issues, POSCO developed a new type of high-performance manganese steel and announced in 2016 that it would be applied to the LNG-fueled bulk carrier built by Hyundai Mipo Dockyard.

Developed independently by POSCO, this high manganese steel contains an Mn content of 20%. Compared to traditional materials, it boasts improved performance through unique properties that include high strength, low-temperature toughness, wear resistance, non-magnetic, and damping properties.

It is the first time a bulk carrier will have been constructed to include an LNG-fueled system and a fuel tank made of high manganese steel.  Its higher strength, ability to withstand an extremely low temperature (-162℃), and cost competitiveness make it superior to the nickel and aluminum alloys that are typically used in tanks. The ship, which will be the world’s largest LNG-fueled bulk carrier, is expected to have a capacity of 50,000 tons, seven times more than previous ships.

POSCO’s high-performance manganese steel will be applied to the world’s largest LNG-fueled bulk carrier built by Hyundai Mipo Dockyard.

POSCO has been able to overcome immense barriers, from the nickel scarcity in the LNG market to the oversupply of steel from China. POSCO strives to be a pioneer across all industries with its innovative products and will continue to do so in the years to come.

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Earlier this month POSCO opened its first lithium extraction plant, PosLX, in Korea that is expected to produce 2,500 tons of lithium carbonate per year – enough to produce about 70 million laptop batteries. While most lithium carbonate is extracted from salt deposits, POSCO was the first to develop a way to extract it from wasted batteries.

Lithium Demand to Continue Rising

Demand for lithium-ion batteries is expected to rise exponentially in the coming years. Tesla, Chevrolet, Nissan, Toyota, and other upstarts are all expecting increased demand as their electric vehicles begin rolling off production lines. Overall, worldwide demand for lithium carbonate is expected to rise from 66,000 tons in 2015 to over 180,000 tons by 2025.

“With the supply of electric cars and the development of smart grid technology, the market is expected to result in massive growth.” – Ohjoon Kwon, CEO

POSCO Reduced Extraction Time to 8 hours

Starting in 2010 when CEO Ohjoon Kwon was the Director at the Research Institute of Industrial Science & Technology (RIST), POSCO began working on developing a high-efficiency technique for extracting lithium from water.

In 2010, POSCO began development of a new chemically based lithium extraction technology that is able to reduce extraction time while also improving efficiency and reliance on overseas imports. The first pilot program began in 2013 and POSCO recently became the world’s first corporation to commercialize chemically based lithium extraction technology.

Lithium extraction traditionally takes anywhere from 12-18 months using a slow evaporation technique. However, POSCO’s new extraction method takes from 8 hours up to one month while also offering a purity rate of 99.9% and increasing the lithium recovery rate to over 80%.

Furthering POSCO’s work in lithium extraction, in 2011 POSCO partnered with RIST to further establish pilot production facilities with an annual capacity of two tons. Since then, POSCO has successfully completed more pilot production facilities overseas at Chile’s Maricunga Salt Lake (2013), Argentina’s Pozuelos Salt Lake (2014), and Argentina’s Cauchari Salt Lake (2015). The lithium processing plant at the Pozuelos Salt Lake in Argentina will have an annual processing capacity of 2,500 tons of high-purity lithium that can be used in rechargeable car batteries.

Pozuelos Salt Lake in Argentina

Eco-friendly Extraction Using Recycled Batteries

POSCO has also commercialized a new eco-friendly technology used to produce lithium carbonate. While lithium is typically extracted from salt, for the first time ever, POSCO developed a way to extract lithium from recycled batteries.

The lithium carbonate produced from these recycled secondary batteries was tested in January 2017 and found to be of equal quality in terms of purity, charge, discharge efficiency, and capacity. This technology is used at POSCO’s PosLX plant with an annual capacity of 2,500 tons, and will help supply POSCO’s battery making partners such as LG Chem, Samsung SDI, and POSCO ESM, a subsidiary that produces cathodes for secondary batteries.

With POSCO’s unique technologies in place, POSCO is planning to increase production capacities to over 40,000 tons of lithium – both at home and abroad.

From left to right: Jae-chun Song, chairman of Gwangyang City Council, Hyun-bok Jeong, mayor of Gwangyang, Gi-jong Woo, deputy governor of South Jeolla Province, POSCO CEO Ohjoon Kwon, Ung-beom Lee, president of LG Chem and Nam-seong Cho, president of Samsung SDI who can be seen pressing symbolic buzzers to show that the plant is now online.

CEO Ohjoon Kwon’s Commitment to Grow POSCO’s Non-Steel Business

Since 2010 when he was a director at RIST, POSCO CEO Ohjoon Kwon has worked to promote the advancement of lithium extraction technology. His work can be seen in POSCO’s recent efforts to significantly cut extraction time while also finding new and eco-friendly sources of lithium carbonate.

POSCO Chairman Ohjoon Kwon gives a celebratory speech at a newly built lithium extract plant in Gwangyang, South Jeolla Province, on Feb. 7.

When Kwon was appointed as POSCO’s CEO in 2014, he focused on strengthening POSCO’s steel businesses. However, as he begins his second term, he has emphasized the need for POSCO to search for profitable growth engines in order to strengthen its global competitiveness.

“Our vision is what propelled us to keep going in spite of many difficulties and limitations.” – Ohjoon Kwon, CEO

In the world’s growing lithium market, POSCO is determined to become a leading supplier. While strengthening its non-steel business segments, POSCO will continue working to provide innovative technologies that are efficient, effective, and eco-friendly.

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From left to right: Jae-chun Song, chairman of Gwangyang City Council, Hyun-bok Jeong, mayor of Gwangyang, Gi-jong Woo, deputy governor of South Jeolla Province, POSCO CEO Ohjoon Kwon, Ung-beom Lee, president of LG Chem and Nam-seong Cho, president of Samsung SDI who can be seen pressing symbolic buzzers to show that the plant is now online.

“Our vision is what propelled us to keep going in spite of many difficulties and limitations,” POSCO CEO Ohjoon Kwon said. “We plan to continue differentiating ourselves in the energy material business with lithium, high purity nickel, and positive electrode materials.”

Jong-joo Kim, a director at the Ministry of Trade, Industry and Energy said, “Today’s completion of the plant gives POSCO the ability to provide lithium carbonate for its partners in the battery manufacturing industry. ”

POSCO is currently obtaining its lithium phosphate, a raw material of lithium carbonate, by extracting it from wasted rechargeable batteries. In the future, POSCO will use its proprietary lithium extraction technology to produce its own lithium phosphate. POSCO has been developing this eco-friendly technology for 7 years. It extracts lithium phosphate from saline water and converts it into lithium carbonate. Unlike the conventional method that takes 12 to 18 months on average, POSCO’s highly efficient method takes as little as 8 hours or up to one month. This method offers a purity rate of 99.9% while also increasing the lithium recovery rate to over 80%.

POSCO CEO Ohjoon Kwon and others being briefed on the lithium production process while taking a tour of the PosLX Plant.

Due to the continuous expansion of the mobile industry, the demand for lithium-ion secondary batteries has increased exponentially. In 2015, worldwide demand for lithium carbonate for batteries swelled from 6,000 tons (in 2002) to 66,000 tons. And as the presence of electric vehicles and energy storage systems (ESS) continues to expand, the demand for lithium carbonate is expected to balloon over 180,000 tons by 2025. To address these changing needs, POSCO plans to strengthen its position as a global lithium production base by building plants that have an annual production capacities of 40,000 tons of lithium – both at home and abroad – starting with the PosLX Plant at Gwangyang Works.

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