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| Choi Yoon-ho, left, CEO of Samsung SDI, poses with Kim Joon-hyeong, CEO of POSCO Chemical, during the signing ceremony for cathodes supply, Monday. Courtesy of POSCO Chemical |
POSCO Chemical said Monday it has signed a largest-ever long-term contract to supply a key component used in electric vehicle (EV) battery cells to Samsung SDI.
POSCO Chemical will supply high-nickel cathodes, consisting of lithium, nickel, cobalt and aluminum, to Samsung SDI, for a 10-year period starting this year for 40 trillion won ($32.5 billion), the chemical unit of steel giant POSCO Holdings said.
Cathodes are a core component that determine the power of EV battery cells. They account for more than 40 percent of a battery's production cost.
POSCO Chemical has been expanding its battery materials business since its advance into the sector in 2012. It touts itself as one of a few companies capable of producing both cathodes and anodes for EV batteries.
The latest agreement follows the 13.7 trillion-won cathodes supply deal POSCO Chemical clinched in July last year with Ultium Cells, a joint venture between LG Energy Solution and General Motors.
POSCO Chemical has bagged more than 21 trillion won worth of cathodes supply orders from Ultium Cells.
POSCO Chemical began commercial operations at its cathode plant in Korea's southwestern city of Gwangyang, which has an annual production capacity of 90,000 tons.
It plans to complete the construction of its cathode plant in Pohang, a southeastern industrial city in Korea, within this year and is on track for the completion of a high-nickel cathode plant in Canada next year under its own joint venture with GM. (Yonhap)
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