POSCO FUTURE M

- Initial shipment on the 12th, 30,000 tons per year; operations advanced by three months to meet surging demand

- Established mass production system for three high-value, high-nickel cathode materials: NCM, NCMA, and NCA

POSCO Future M announced the commencement of operations on the 12th by conducting the initial shipment of products produced at its Pohang NCA cathode material plant.

NCA cathode material is a high-nickel product with an 88% nickel content, utilizing cobalt, aluminum, and other raw materials to achieve high energy density and output. It is primarily used in high-performance electric vehicle (EV) batteries.

In January 2023, POSCO Future M entered into a supply agreement with Samsung SDI worth approximately 40 trillion won. The agreement involves supplying NCA cathode materials by utilizing select production lines at the Gwangyang plant. To respond to customer demand, POSCO Future M has expedited the operation of the NCA cathode material plant under construction in Pohang by three months, initiating operations in October.

By launching the first NCA cathode material plant in Pohang, which has a capacity of 30,000 tons per year, POSCO Future M has established a mass production system capable of reliably meeting large-scale orders. Additionally, POSCO Future M is constructing a second NCA cathode material plant in Gwangyang, which has a capacity of 52,500 tons per year and is targeted for completion in 2025. This expansion will culminate in a total production capacity of 82,500 tons per year for NCA cathode materials.

At both the Pohang and Gwangyang NCA cathode material plants, POSCO Future M plans to expand the production of single-crystal cathode materials, which are experiencing a surge in demand due to the increasing performance requirements of EVs. Single-crystal cathode materials, which integrate raw materials into a single-particle structure, enhance battery thermal stability and lifespan, necessitating high technological expertise during manufacturing. Following the mass production of NCMA single-crystal cathode materials in March last year, POSCO Future M is now poised to solidify its standing as a leader in high-value technology by establishing mass production and supply systems for NCA single-crystal cathode materials.
 
By establishing a mass production system for NCA cathode materials in addition to its core NCM and NCMA cathode materials, POSCO Future M has expanded its product portfolio to effectively address the EV market's growth and its customers' increasingly segmented needs. Concurrently, the company anticipates improved profitability through increased sales of high-value, high-nickel cathode materials.

POSCO Future M is progressively expanding its cathode material production capacity to reliably meet customer orders, positioning Pohang and Gwangyang as crucial hubs for targeting the global battery materials market. By 2026, POSCO Future M plans to achieve a total cathode material production capacity of 248,500 tons per year, including the newly completed NCA cathode material plant in Pohang with a capacity of 106,000 tons and the Gwangyang plant with a capacity of 142,500 tons.