South Korea-based POSCO Chemical signed a contract to supply Samsung SDI with high-nickel NCA cathode materials for electric vehicle batteries for 10 years from this year to 2032. This 40-trillion won ($32.6-billion) contract is the largest and longest-term order since the creation of POSCO Chemical.
With this contract, POSCO Chemical has expanded its product portfolio to NCA in addition to NCM•NCMA materials that have been mainly produced so far, and has secured Samsung SDI, which supplies batteries to various global automakers, as a new customer.
NCA cathode materials contain lithium, nickel, cobalt, and aluminum; NCM•NCM(A) material contain lithium, nickel, cobalt, manganese and (aluminum). Cathode materials account for more than 40% of the cost of the battery and are key materials that determine capacity and output.
Since the start of the material business in 2012, POSCO Chemical has actively promoted research and development to diversify its products in line with the rapid growth of the electric vehicle market and the needs of segmented customers, and currently has 5 product lines. LFP (Lithium phosphate iron), a product for entry-level electric vehicles, is also under development, so the product range is expected to be more diversified depending on future market conditions.
POSCO Group has secured a full value chain from securing a mining area for lithium and nickel to material production and recycling to establishing a stable supply chain of core materials that are essential for expanding the global battery business.
In the future, POSCO Chemical plans to further strengthen its long-term cooperative relationship with Samsung SDI to target the electric vehicle market based on stable global mass production capabilities and raw material competitiveness.