POSCO Chemical announced on Jan. 30 that it has signed a contract with Samsung SDI to supply high-nickel NCA cathode materials for electric vehicle (EV) batteries for 10 years from 2023 to 2032. This contract is worth 40 trillion won. It went down in the history of POSCO Chemical as the largest and longest supply contract.
With the contract with Samsung SDI, POSCO Chemical has expanded its product portfolio to include NCA cathode mateirals in addition to the NCM and NCMA cathode materials it has produced so far.
Cathode materials account for more than 40 percent of battery cost. NCM and NCM(A) cathode materials are made of lithium, nickel, cobalt and manganese. NCA cathode materials are manufactured using lithium, nickel, cobalt, and aluminum. They can maximize battery efficiency thanks to their high battery density.
In July of last year, POSCO Chemical signed an agreement with General Motors (GM) to supply cathode materials worth 13,769.6 billion won. For three years until 2025, high-nickel cathode materials produced at POSCO Chemical’s Gwangyang plant in Korea will be supplied to Ultium Cells, a battery joint venture between GM and LG Energy Solution.