Posco Future M Begins Early Production of NCA Cathodes at New South Korea Plant

Posco Future M

South Korean materials giant Posco Future M, a subsidiary of the Posco conglomerate, has commenced early production at its new nickel-cobalt-aluminum (NCA) cathode plant in Pohang, North Gyeongsang province. The plant, which boasts an annual production capacity of 30,000 tonnes, was originally scheduled to begin operations in 2025 but has accelerated due to “customer requests.”

Posco’s NCA cathode output is crucial as global battery manufacturers seek high-quality cathode materials to meet demand for electric vehicles (EVs). The early start aligns with Posco Future M's 10-year agreement with Samsung SDI to supply high-nickel NCA cathodes, part of a broader push to establish South Korea as a leading player in the EV supply chain.

Expanding Production Capacity Amid EV Market Challenges

Posco Future M is actively expanding its cathode production capabilities with another plant under construction in Gwangyang, South Jeolla province, which is expected to add 52,500 tonnes per year by 2026. This will bring the company's total cathode material production capacity to 248,500 tonnes per year across its two plants by 2026. Despite this expansion, the firm has revised its initial target of 320,000 tonnes by 2025, reflecting the current slowdown in the global EV market.

The slowdown has also impacted Posco’s joint ventures and new plant projects. In September, the company postponed its plans for a nickel sulfate and battery precursor plant with China’s Huayou Cobalt, as well as its high-nickel cathode active material (CAM) facility in Quebec, Canada, a joint effort with General Motors, citing “local conditions.”