Posco’s new NCA cathode material plant starts production

On October 14, Posco Future M, a subsidiary of South Korean battery material producer Posco Group, started production of nickel-cobalt-aluminum (NCA) ternary cathode materials ahead of schedule at its plant in Pohang, North Gyeongsang Province, citing “customer requirements”.

The plant’s 30,000-ton annual NCA cathode material plant was originally scheduled to start production and sales in 2025.

Future M is building another NCA plant in Gwangyang, South Jeolla Province, which will have an annual production capacity of 52,500 tons. The company signed a 10-year agreement in 2023 to supply high-nickel NCA cathode materials to battery manufacturer Samsung SDI, which will come from part of the production line of the upcoming Gwangyang plant.

The company said on October 14 that it expects cathode material production capacity to reach 248,500 tons/year by 2026, including 106,000 tons/year at Pohang and 142,500 tons/year at Gwangyang, as the electric vehicle (EV) market continues to slow. Those capacities are significantly below the company’s target of 320,000 tonnes/year by 2025, which it said in July last year.

In early September, POSCO Future M suspended plans to build a nickel sulfate and precursor plant with Huayou Cobalt due to slowing electric vehicle sales outside China.

The company also disclosed in September that it was delaying the timetable for a 30,000 tonne/year high-nickel CAM plant in Quebec, Canada, a joint venture with U.S. automaker General Motors, due to “local conditions.” The plant was originally scheduled to be completed in the second half of 2024.