- CEO Kwon visits the POSCO ESM cathode materials plant
- Acquired additional stake in Jan. and will invest additional KRW 300 bil.
- Only 2 companies in the world produce high-capacity cathode materials with 80% or more Ni.
POSCO CEO Ohjoon Kwon is leading the charge to
foster future growth engines.
On February 7, CEO Kwon oversaw the final construction
of the lithium factory(PosLX) at Gwangyang Steel Mill, and on February 10, visited
the cathode materials factory of POSCO ESM(POSCO Energy Storage Materials),
located in Gumi, Gyeongsangbuk-do, and personally
inspected the production status and shipping process.
▶ On February 10, POSCO CEO Ohjoon Kwon visited the POSCO ESM cathode materials factory, located in Gumi, and offered encouragement to the employees working there.
POSCO ESM is a company producing cathode materials that are essential for
the manufacture of secondary batteries for portable IT devices such as electric
vehicles, laptops and cell phones. Since last month, it succeeded in mass-producing
'PG(POSCO Gradient)-NCM(Nickel Cobalt Manganese)*,' the high-capacity cathode
material for low-speed electric vehicles, and has been supplying it to LG Chem.
In the meantime, it is being used to only produce general cathode materials.
On that day, CEO Kwon said, "The cathode materials produced by POSCO ESM
are essential for the secondary battery material business of POSCO, and we are
planning to invest an additional KRW 300 billion in the cathode materials business
until 2020." He expressed a strong will to foster the secondary battery material
CEO Kwon was appointed to serve a second term, carried out restructuring
and appointed new executives. Immediately afterwards, he attended the ceremony
for celebrating the completion of the construction of the lithium factory in
Gwangyang, and visited the site of the cathode materials business. He is eager
to secure future growth engines and reinforce the non-steel business.
To expand the secondary battery business, POSCO acquired a 75.32% stake in
POSCO ESM by issuing new stocks last January. As POSCO has now stably secured
the management rights of POSCO ESM, the foundation for transforming it into
a specialist in secondary battery materials for electric vehicles has now been
In addition, POSCO ESM recently succeeded in mass-producing high-capacity
cathode materials. Although it stepped into the cathode materials market belatedly
in 2012, it now stands shoulder to shoulder with the leading cathode materials
producers of the world. There are currently only two companies in the world,
including POSCO ESM, which can produce high-capacity cathode materials with
80% or more nickel(NCM type).
▶ POSCO CEO Ohjoon Kwon poses for a picture with POSCO ESM employees, promising to work together for the success of the new business.
As environment-friendly policies are being bolstered around the world, demand
for electric vehicles is sharply increasing, and the demand for industrial energy
storage systems(ESS) and large-capacity batteries for IT devices is also continuously
expanding. The size of the global secondary battery market is expected to grow
from $29.3 billion in 2016 to $44.2 billion in 2020 and will continuously grow
In keeping with the growth of the secondary battery market, POSCO stays a
step ahead of others in the secondary battery material business by accumulating
the know-how of producing steel, processing various materials at a high temperature
and producing final products over the past 50 years, and the Research Institute
for Industrial Science & Technology (RIST) has conducted studies on various
new materials, such as lithium, nickel, titanium and carbon, for more than 30
Meanwhile, POSCO is planning to capitalize on the technologies it developed
using POSCO's production know-how and RIST's research competencies to actively
transform high-yield businesses such as magnesium and nickel smelting into its
future growth engines.
※ Overview of POSCO ESM
○ Date of establishment: March 2, 2012
○ HQ and factory: Gumi, Gyeongsangbuk-do
○ Business: Manufacture and sale of lithium ion secondary battery cathode
and anode materials
○ Equity structure: POSCO 75.32%, Phoenix Materials 24.68%