Posco Chemical gets govt approval for cathode export

SEOUL: Posco Chemical Co, a major South Korean producer of secondary battery materials, says it has obtained government approval for the export of its technologies related to producing cathodes, a key component used in electric vehicle (EV) cells.

The decision was made earlier this month by the private-public committee handling industrial technology protection under the Trade, Industry and Energy Ministry, according to Posco Chemical.

South Korea has designated some 75 technologies in 13 industrial sectors, such as semiconductors, electrical and electronics, and steel as national core technologies subject to a strict security clearance in case of export.

High-nickel cathodes with more than 80% nickel content are one of the core technologies in the categories for technological and economic value and growth potential.

Cathodes determine the power of EV batteries.

The government approval will give a boost to Posco Chemical’s overseas push to expand its global foothold in North America and elsewhere, the company said.

Posco Chemical joined hands with General Motors Co for their joint venture (JV), Ultium CAM, to build a cathode plant in Quebec, Canada, by 2024.

It also has a stake in the project led by Zhejiang Posco-huayou New Energy Co, a cathode JV between its parent, Posco Holdings Co, and China’s Huayou Cobalt, to boost production capacity to 35,000 tonnes from the current 5,000 tonnes by 2025.

Posco Chemical has been a material supplier to the major South Korean battery manufacturers, including LG Chem, Samsung SDI and SKI. It is also the only South Korean battery material supplier that offers both cathode and anode products. Its largest shareholder and parent is the global steel giant Posco.

Huayou Cobalt, meanwhile, as the largest Chinese supplier for cobalt-based products, has built an extensive product portfolio for battery materials. The company develops and manufactures lithium and cobalt-based materials used in a wide range of Li-ion batteries.

It is among the top material suppliers in the global Li-ion battery industry in terms of sales.