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AL CIRCLE

POSCO signs 10-years NCMA cathode supply deal with Samsung SDI for EV battery production

EDITED BY : 2MINS READ

This week, POSCO Chemical Company has intertwined in a ten-year supply agreement for essential materials required in Electric Vehicles (EV) battery cells with local battery producer Samsung SDI, as was reported by South Korean sources.

POSCO signs 10-years NCMA cathode supply deal with Samsung SDI for EV battery production , Alcircle News

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POSCO Chemicals, a subsidiary of steel and chemicals firm Posco Holdings has agreed upon a supply contract of nickel cobalt aluminium (NCMA) cathode materials amounting to KRW40trn or US$32.5 billion. The supply of NCMA cathode materials to Samsung SDI will be fulfilled by 2023. Cathode materials conventionally take up almost 40 per cent of the cost of producing EV battery cells, and they are incredibly vital for proper energy storage and uninterrupted output.

Though POSCO Chemical is fundamentally responsible for the production of nickel cobalt manganese (NCM) cathodes, this time, the company has ventured out into incorporating aluminium in the concoction. This addition of aluminium has definitively heightened the thermal stability of the NCMA cathodes, and POSCO is proudly churning its operations in the South Korean plant of Gwangyang to ascertain the desired output.

The supply deal can be regarded as the first assignment concerning cathode materials offered to POSCO Chemicals by Samsung SDI, which comes under South Korea’s largest conglomerate, the Samsung Group, also esteemed as the world’s sixth-largest EV battery maker. To date, most of POSCO’s supply deals have been signed with LG Energy Solution, the third-largest EV battery manufacturer globally.

The president of POSCO Chemical, Kim Joon-hyeong, asserted in his statement: “Our efforts paid off to expand our customer base and portfolio, as well as enhance business competitiveness in response to the rapidly growing EV market.”

Quite recently, Samsung has switched from nickel cobalt manganese (NCM) cathodes to nickel cobalt manganese aluminium (NCMA) cathodes to produce its patented Gen 5 batteries, sighting the increased potential.

Global Aluminium Industry Outlook 2023

The POSCO NCMA cathode materials would be streamlined for Samsung SDI’s battery-producing joint venture with Stellantis and used in other EV-related projects.


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EDITED BY : 2MINS READ

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