Posco Chemical finishes largest cathode plant in world

A bird's-eye view of Posco Chemical's cathode plant in Gwangyang, South Jeolla. [POSCO CHEMICAL]

Posco Chemical finished construction of the world’s largest cathode plant in Gwangyang, South Jeolla, to become a major player in the fast-growing electric vehicle (EV) battery industry.

The 165,203-square-meter plant has 90,000 tons of annual capacity, which is enough to make batteries for 1 million EVs. That is the world's largest facility in terms of cathode production, Posco Chemical said.

Made of lithium, nickel, cobalt and manganese, cathode materials account for 40 percent of the production cost of an EV battery. They play a key role in the performance of the battery.

The Gwangyang facility will boost Posco Chemical's total cathode production capacity to 105,000 tons. It has a 10,000-ton plant in Gumi, North Gyeongsang, and a 5,000-ton plant in Hangzhou, China.

Posco said it has solar panels on the roof of the plant and in an outdoor parking lot that can generate 1.3 gigawatt-hours (GWh) of renewable energy every year.

"With the world's largest production facility, Posco Chemical is now able to respond to surging market demand," said Posco Chemical President Min Kyung-zoon.

Posco Chemical aims to increase its cathode capacity to 340,000 tons in 2025 and 610,000 tons in 2030.

It is building a 60,000-ton facility in Pohang, North Gyeongsang, a 30,000-ton facility in Hangzhou, China and a 30,000 ton facility in Quebec, Canada.

BY SARAH CHEA [chea.sarah@joongang.co.kr]