Posco Future M Allocates $300 Million for High-Nickel Cathode Plant Construction

South Korea: Posco Future M is taking advantage of the growing demand for higher-density batteries by investing 392 billion won ($300 million) to build a new high-Nickel cathode plant in Pohang, South Korea.

Once operational, the facility will have a yearly capacity of producing 30,000 tons of Nickel-Cobalt-Aluminum (NCA) cathodes - enough to supply batteries for 300,000 electric vehicles.

This investment further solidifies the company's plans following the 40 trillion won and 10-year supply deal with Samsung SDI it signed back in late January.

Posco Future M is breaking ground on a new cathode plant that will help to bolster its production capacity to 60,000 tons by 2025. Cathodes are an essential component of batteries and can account for up to 40 percent of the cost of one. Posco Future M currently has five cathode products completed since it began its cathode business in 2012 and looks forward to starting production at their new facility soon.

Posco Future M is transitioning into a battery material business, specifically with the development of a Lithium Iron Phosphate (or LFP) battery. This kind of battery has less energy density than other varieties, but costs less and has lower fire risks — making it attractive in terms of cost and safety. Chinese manufacturers are the primary controllers of this market, meaning that Posco Future M will have to compete for its piece of the pie.