Posco Chemical – an affiliate of South Korea’s largest steelmaker Posco – is aiming to more than double its revenues from cathode and anode this year to around KRW 700 billion on the back of more capex, according to industry sources on Feb. 26. In 2019, the firm had posted revenues of KRW 246.4 billion.
The ambitious plans would make battery materials account for more than 30% of Posco Chemical’s total sales, with the proportion to increase to 50% in 2021 and revenues of up to KRW 1 trillion. In 2019, the Posco affiliate recorded sales of KRW 1.48 trillion won, among which only 16% was derived from energy material businesses.
Cathode capacity is estimated to rise to an annual 44,000 tons, while anode capacity would grow to 55,000 tons.
Posco Chemical has already signed a KRW 1.85 trillion deal with LG Chem for N6x to supply pouch-type batteries. For cylindrical batteries, the company is already providing N8x for the Tesla Model 3 electric vehicles.
Posco Chemical plans to begin producing NCMA, dubbed the next generational cathode. Mass production is scheduled for 2022. LG Chem is likely to be a key client.
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