POSCO Chemical signs $33 bil deal to supply cathode materials to Samsung SDI.
POSCO Chemical announced on the 2032th that it has signed a contract to supply Samsung SDI with high nickel NCA cathode materials for electric vehicle batteries for 10 years from this year to 30. This 40 trillion won contract is the largest and longest-term order since the founding of POSCO Chemical.
With this agreement, POSCO Chemical has expanded its product portfolio to *NCA in addition to *NCM and NCMA cathode materials, which it has mainly produced so far, and secured Samsung SDI, which supplies batteries to various global automakers, as a new customer, laying the foundation for another quantum jump.
* NCM•NCM(A) cathode material: Cathode material made of lithium, nickel, cobalt, manganese, (aluminum) as raw material * NCA cathode material: Cathode material made of lithium, nickel, cobalt, aluminum as raw material
. The cathode
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material, which can maximize efficiency due to high battery density and output, accounts for more than 40% of the battery cost and is a key material that determines the capacity and output. Lithium, nickel, cobalt, manganese, aluminum, etc. are manufactured as raw materials, and the characteristics and performance of electric vehicle batteries are divided according to the composition of raw materials.
Since POSCO Chemical started its cathode material business in 2012, POSCO Chemical has actively pursued research and development to diversify its products in line with the rapid growth of the electric vehicle market and the needs of its customers, and currently has five product lines. LFP (lithium iron phosphate) cathode material, a product for entry-level electric vehicles, is also under development, and the product range is expected to be further diversified according to market conditions in the future.
In addition, Samsung SDI, which has partnered with POSCO Group, which has secured a full value chain from securing mineral rights such as lithium and nickel to material production and recycling, has established a stable supply chain of core materials essential for expanding its global battery business.
In the future, POSCO Chemical plans to further strengthen its long-term cooperation with Samsung SDI to enter the electric vehicle market based on its stable global mass production capabilities and raw material competitiveness.
Yunho Choi, President of Samsung SDI, said:
This cooperation with POSCO Chemical has laid the foundation for long-term large-scale growth of both companies by securing a long-term relationship of trust.
Kim Jun-hyung, President of POSCO Chemical, said:
In response to the rapidly growing EV market, our efforts to expand our customer portfolio and enhance our business competitiveness have paid off.
Adding, “We will further strengthen our position as a global market leader in battery materials by producing world-class cathode materials in close cooperation with Samsung SDI.”
Highlights:
- Long-term supply of high nickel cathode material for electric vehicle batteries for 10 years, signed the largest supply contract in Changsha – Expanded product portfolio and customers with NCA cathode materials and laid the foundation for another quantum jump.
- Securing raw materials ~ establishing a full value chain for material production and strengthening R&D POSCO Chemical will supply Samsung SDI with 40 trillion won of high nickel cathode materials.
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POSCO Chemical receives 40 trillion won order for cathode material for Samsung SDI battery, January 2023
