POSCO Chemical has signed a contract to supply high-nickel NCA cathode materials for electric vehicle batteries to Samsung SDI for 10 years from this year to 2032.
This contract, which is worth 40 trillion won, is the largest and longest-term order POSCO Chemical has landed since its foundation.
With this contract, POSCO Chemical has expanded its product portfolio to include NCA* in addition to NCM and NCMA* cathode materials that have been mainly produced so far, as well as earning a new client, Samsung SDI, which supplies batteries to various global automakers, thereby laying the foundation for another quantum leap forward.
Cathode materials account for more than 40% of battery production costs and are key materials that determine capacity and output. Cathode materials are made using lithium, nickel, cobalt, manganese, and aluminum, and the characteristics and performance of electric vehicle batteries are determined by the combination of the raw materials used.
Choi Yoon-ho, CEO of Samsung SDI, said, “By securing a long-term, firm relationship of trust through this cooperation with POSCO Chemical, we have laid the foundation for both companies to achieve long-term, large-scale growth together. Through this, we expect to accelerate the achievement of our vision of becoming a global top-tier company in the rapidly growing electric vehicle battery market.”
Kim Joon-hyeong, the president of POSCO Chemical said, “Our efforts to expand our product portfolio through partnerships with clients and to enhance our business competitiveness in response to the rapidly growing electric vehicle market have now paid off. We will continue to strengthen our position as a global market leader in battery materials by producing world-class cathode materials through close cooperation with Samsung SDI.”