Posco Chemical has posted sales of 388.6 billion won in the third quarter of 2020 thanks to the strong performances of its battery materials business.
The company also posted operating profits of 19.3 billion won in the quarter, a decline of 30.7% year over year. But sales was an increase of 4.6% from a year prior.
However, operating profit was an increase of 375.6% from the previous quarter while sales rose 14.2% quarter over quarter. It also turned a net profit.
Its energy materials business saw demand rise from electric car makers restarting production. Posco also secured cost effectiveness thanks to its Gwangyang factory beginning its second stage operations.
Posco is also seeing more sales from cathode compared to anodes. Cathode accounted for 69% of the energy materials business’ sales in the third quarter. This is likely from customer LG Chem increasing battery production.
Posco will likely see growth continue in the short term as its expansion of its cathode production capacity to 69,000 tonnes per year continue to up to 2022.
The company will secure its own supply of nickel and lithium to better control costs as well. It is planning to expand its orders for precursors from Huayou Cobalt of China.
For anode, it will use materials from affiliate PMC Tech. Posco Chemical is planning to construct a new synthetic graphite factory with 217.7 billion won. PMC Tech will provide the coke needed to make the graphites.
The energy materials business has accounted for 30% of Posco Chemical’s 2020 sales so far.