POSCO Future M begins NCA production in Pohang

South Korea's POSCO Future M Co. has started production of nickel, cobalt, aluminum (NCA) cathode materials at its Pohang factory, three months earlier than planned.

The company announced on Sunday that it successfully produced high-nickel materials with 88% nickel content on October 12.

These products boost energy density and output, making them ideal for high-performance electric vehicle batteries.

The Pohang facility is the company's first dedicated NCA cathode plant, with an annual capacity of 30,000 tons.

Since signing a 40 trillion won supply deal with Samsung SDI in January last year, POSCO Future M has been supplying NCA materials from its Gwangyang plant.

The new NCA plant with a capacity of 52,500 tons will be completed in Gwangyang, increasing the company's total NCA output to 82,500 tons next year. 

POSCO Future M aims to diversify its offerings by adding NCA materials alongside its existing nickel, cobalt, manganese (NCM), and nickel, cobalt, manganese, aluminum (NCMA) lines to meet customer demand.

"We plan to expand production of single-crystal cathode materials, which are in high demand due to the growth of high-performance electric vehicles," a company source said.

Single-crystal cathodes improve battery stability and lifespan by combining raw materials into a single-particle structure.

POSCO Future M targets a total NCA capacity of 248,500 tons by 2026.

Write to Woo-Sub Kim at duter@hankyung.com