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.

Today, POSCO global blog will try to explain the basics of electric vehicles.

Pictured here: POSCO exhibit set up at The 1^st International Electric Vehicle Expo held in Jeju

What is an Electric Vehicle?

An electric car is basically an automobile that is powered by electricity. It is powered by an electric motor that runs on a rechargeable battery as opposed to a gasoline engine. Electric vehicles has gained widespread recognition predominantly because it is the environmentally-friendly alternative to gas guzzling automobiles.

Why should you care about Electric Vehicles?

Pictured here: EV on display that promotes ‘zero emissions’

 You might have heard the word ‘electric car’ lately, but might not understand what the direct benefits are. The major reasons that electric cars is top-of-mind for the auto industry and society as whole are for the following reasons:

1)      Less pollution: Electric cars are an eco-friendly alternative to gasoline powered cars as they create less pollution

2)      Cost effective in the long-run: Electric cars run on electricity so you can save up on annual car fuel costs and expensive maintenance related to oil changes, fuel filters, etc.

3)      Reduces fuel dependency: Electric vehicles can be powered by electricity produced from multiple energy sources including wind, solar, hydro, nuclear, biofuel, and fossil fuel sources. Therefore, electric vehicles have the potential to support economies while also reducing dependence on imported oil.

4)      Better Sound Quality: Electric cars may be difficult to differentiate from regular cars from the outside, but electric motors provide quiet and very smooth operation.

Challenges for Electric Vehicles

That is not to say that electric vehicles face no challenges. Driving range is a concern for consumers as gasoline vehicles can go longer distances. Recharge time and overall bulk are concerns also. Companies, including POSCO, are continuously investing time and energy to improve technologies and materials for electric vehicles.

Pictured here: Entrance to 1^st International Electric Vehicle Expo in Jeju

During March 15 through 21, the 1^st International Electric Vehicle Expo was held in Jeju Island, south of the Korean peninsula. More than 40 companies attended the event and consumers were able to see firsthand electric cars including Kia’s Ray EV, Reno Samsung SM3 Z.E., Chevrolet Spark EV, Kia Soul EV and BMW i3. Nearly 50,000 visitors came to the expo where POSCO Group showcased its innovative electric car technology.

Pictured here: POSCO exhibit at 1^st International Electric Vehicle Expo in Jeju

Of the participating companies, POSCO was the only company to offer a total solution that addresses materials, rechargeable infra and service. POSCO was the first steelmaking company to develop a body for an electric vehicle concept, solidifying its position at the forefront of electric vehicles.

POSCO Group’s <Total Solution>

Pictured here: POSCO executives gathered at the Expo in Jeju

POSCO Group companies including POSCO ICT, POSCO ChemTech, POSCO TMC and POSCO ESM were all present for the expo. As the first steelmaker to create the concept body for electric vehicles, POSCO proved that its steel solutions continue to provide value for the future of electric vehicles. The exhibit was divided into three parts consisting of rechargeable infra needed by electric vehicles, service and materials.

POSCO ICT’s electric vehicle rechargeable infra solution can be applied to all types of vehicles. Moreover, users are able to recharge without having to carry an external cable.

Pictured here: Chevrolet electric vehicle on exhibit being recharged

In addition, in order to improve the user experience, POSCO is offering a variety of convenient services. POSCO ICT has set up charging infrastructure around Jeju so travelers do not need to worry about lack of electricity. Beginning this June, POSCO ICT will form a partnership with E-Mart·BMW to offer easier charging services anytime, anywhere. POSCO ICT will also be forming a partnership with Seoul car sharing services to provide rechargeable infra.

POSCO also highlighted its commitment towards Nd magnets. Nd magnet, which is made of a rare earth metal, is an integral part of electric vehicle motors. They are currently imported from Japan and China. The Nd magnets that POSCO supplies can be applied to domestic electric vehicles and can reduce the dependency on imports.

State-of-the-Art Technology for Future Electric Vehicles

Pictured here: Compact-sized electric vehicle

Compared to internal combustion engines, electric vehicles are still trailing behind in terms of mileage and battery weight. Therefore a variety of new technologies are being applied for lightweight car bodies. For this reason, new materials beyond the previous aluminum and steel are being introduced into the development of electric vehicles.

POSCO is the first steelmaker to develop steel that is optimized for electric vehicle bodies. PBC-EV (POSCO Body Concept-Electric Vehicle) is the car body that was developed to showcase the state-of-the-art technology POSCO has recently developed for future electric vehicles.

PBC-EV has set the standard for EV steel solutions. It is made from cutting-edge steel and the latest components technology for an integrated solution that has reduced weight of 26.4% compared to previous car bodies.

Pictured here: Regular-sized electric vehicle made by Renault Samsung Motors

The Future of Electric Vehicles

As companies continue to improve and build upon existing electric vehicle technologies, the growing prominence of electric vehicles is highly probable. As an environmentally-conscious company, POSCO hopes to see more growth in this field. Would you buy an electric vehicle?