À̹ÌÁö È®´ë POSCO Chem signs $33 bn cathode materials supply deal with Samsung SDI [Photo by Yonhap]
POSCO Chemical Co. under South Korean steel giant POSCO will supply 40 trillion won ($32.5 billion) worth of cathode materials for electric vehicle batteries to battery maker Samsung SDI Co. for 10 years.
POSCO Chemical said in a disclosure on Monday that it signed a 10-year contract with Samsung SDI to supply the company high-nickel cathodes for EV use between 2023 and 2032. The contract was signed by Samsung SDI President Choi Yoon-ho and POSCO Chemical President Kim Jun-hyung at POSCO Center in Daechi-dong, southern Seoul. It is the biggest and longest deal ever won by POSCO Chemical since its inception.
Cathode materials, which account for more than 40 percent of a battery cost, are a key material that decides on battery capacity and output. They are made of raw materials such as lithium, nickel, cobalt, manganese, and aluminum, and different materials result to different EV battery features and performance.
POSCO Chemical will be supplying lithium nickel cobalt aluminum oxide (NCA) cathode materials to Samsung SDI. The latest deal has allowed POSCO Chemical to expand its portfolio to include NCA cathode materials on top of lithium nickel cobalt manganese oxide (NCM) cathode materials.
The NCA type has a higher concentration of nickel, which allows longer driving range with the same weight of a battery as high nickel ensures higher density of energy.
POSCO Chemical is the only Korean manufacturer that produces both cathode and anode materials. The company has supplied the parts to all three local battery manufacturers LG Energy Solution Ltd. (LGES), Samsung SDI, and SK on Co., but it is the first time that it is providing Samsung SDI with cathodes.
POSCO Chemical is expected to produce the supply for both Samsung SDI and Ultium Cells LLC, a joint venture by LGES and General Motors, at its high-nickel cathode materials plant being built in Pohang, North Gyeongsang Province, with 30,000 ton capacity in 2023 and 30,000 ton in 2025.
Battery industry insiders note that Samsung SDI¡¯s large-scale battery materials contract with POSCO Chemical suggests that it is in talks with foreign automakers like GM and BMW for a joint venture and battery supply.
¡°Samsung SDI has received cathode materials mainly from EcoPro BM,¡± said an unnamed industry official. ¡°It is moving to diversify supply source to meet a surge in global demand for batteries.¡±
By Song Min-geun and Han Yubin
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]