Under the contract, the largest in its history, POSCO Chemical is to supply high-nickel cathodes for a long period of 10 years.
– POSCO Chemical plans to expand its product portfolio and client base with NCA cathodes, laying the stepping stones for another quantum leap forward.
– POSCO Chemical’s establishment of a full value chain — from securing raw materials to producing materials — and strengthening of R&D have borne fruit.
POSCO Chemical is set to supply high-nickel cathodes worth 40 trillion KRW to Samsung SDI.
On the 30th, POSCO Chemical publicly announced that it had signed a contract to supply high-nickel NCA cathodes for electric vehicle batteries to Samsung SDI for 10 years from this year to 2032. The supply contract, which is worth 40 trillion KRW, is the largest and longest-term order POSCO Chemical has landed since its foundation.
With the signing of the contract, POSCO Chemical has expanded its product portfolio to include *NCA cathodes on top of NCM and NCMA cathodes, which have so far been the company’s principal products, as well as earning a new client, Samsung SDI, who supplies batteries to various global automakers, thereby laying the stepping stones for for another quantum leap forward.
* NCM and NCM(A) cathodes: cathodes made using lithium,·nickel,·cobalt,·manganese (and aluminum) as raw materials.
* NCA cathodes: cathodes made using lithium, nickel, cobalt and aluminum as raw materials. A material that can maximize battery efficiency due to the high levels of battery density and output it affords.
Cathodes account for more than 40% of total battery production costs and are a key material in determining battery capacity and output. Cathodes are made using raw materials, such as lithium, nickel, cobalt, manganese and aluminum, and in fact, the characteristics and performance of electric vehicle batteries are determined by the combination of the raw materials used.
Since starting its cathode business in 2012, POSCO Chemical has actively carried out research and development to achieve product diversification in line with the rapid growth of the electric vehicle market and increasingly segmented consumer needs, with the company currently holding five product . As POSCO Chemical is also developing lithium ferro-phosphate (LFP) cathodes, which are used for low-end electric vehicles, its product are expected to be further diversified in the future according to market conditions.
Samsung SDI, on the other hand, by having struck a partnership with POSCO , which has established a whole value chain from securing mining rights for lithium, nickel, etc. to material production and recycling, is now poised to acquire a stable supply chain for core materials, which are indispensable for expanding the company’s global battery business.
POSCO Chemical plans to further strengthen its long-term cooperative relationship with Samsung SDI in a bid to penetrate the electric vehicle market based on its stable global mass production capacity and raw material competitiveness.
Samsung SDI president Choi Yoon-ho said, “Now that we’ve established a firm, long-term relationship of trust with POSCO Chemical through this instance of cooperation, the foundation has been laid for the two companies to achieve long-term, large-scale growth together. Through this, we, Samsung SDI, expect to accelerate the achievement of our vision of becoming a global top-tier company in the rapidly growing electric vehicle battery market.”
POSCO Chemical president Kim Joon-hyeong said, “Our efforts to expand our product portfolio through partnerships with clients and to enhance our business competitiveness in response to the rapidly growing electric vehicle market have now paid off. By producing world-class cathodes through close cooperation with Samsung SDI, we will further cement our position as a global market leader.”