Posco Chemical will supply materials for GM EVs
Posco Chemical will supply cathodes and perhaps even anodes for General Motors’ next electric vehicles (EVs).
The chemical subsidiary of Korea’s leading steelmaker, Posco, said Wednesday that it will supply cathode materials, one of the key four components of lithium-ion batteries, to Ultium Cells.
Ultium Cells is a 50-50 joint venture between General Motors (GM) and LG Chem announced earlier this year. The two companies are investing $2.3 billion to manufacture battery cells that will go into GM's EVs.
Posco Chemical said it will start supplying cathodes when Ultium Cells starts up production.
It also said it is discussing with the Detroit-based automaker supplying anodes, another key material for lithium-ion batteries, to Ultium Cell.
Posco Chemical's battery material production is considered a promising growth engine amid rising demand for lithium-ion batteries for electric vehicles. The company is 61 percent owned by Posco.
In November, Posco Chemical raised 1 trillion won ($922.5 million) through a paid-in capital increase, the biggest issuance of new stock among Posco affiliates to date in order to develop its battery materials business.
Posco Chemical has a factory in Gwangyang, South Jeolla, that is able to produce 40,000 tons of cathodes a year. This year. it invested 600 billion won to expand the factory's capacity by 60,000 tons. By 2023, it plans to produce 100,000 tons of the materials per year.
BY JIN EUN-SOO [email@example.com]