Cosmo AM&T may form cathode joint venture with Samsung SDI
To supply material for batteries to be used by Stellantis
South Korean cathode maker is considering building a cathode factory in the US, TheElec has learned.
The company will likely form a joint venture with Samsung SDI for the factory, sources with direct knowledge of the matter said.
However, specific details such as how much it would spend on the factory and how much stake the parties will control of the venture is yet to be decided, they said.
If the pair do decide to form a joint venture, it could also be involved in recycling scrubs left from battery production, besides just producing cathode in the US, they added.
Cosmo AM&T is considering the plan as its biggest customer Samsung SDI is also planning to build a battery factory in the US.
In October, Samsung SDI announced that it will build a 23GWh battery cell and module factory in the US jointly with automobile giant Stellantis.
It is more advantageous for the South Korean battery maker to procure cathode locally in terms of cost.
Samsung SDI will also want Cosmo AM&T to diversify its supply chain for cathode.
The company has a cathode-making joint venture with EcoPro BM called EcoPro EM.
The venture manufactures nickel, cobalt and aluminum (NCA) oxide cathode that supplies the material to Samsung SDI’s battery production facilities in South Korea and Hungary.
Cosmo AM&T, unlike EcoPro EM, mainly produces nickel, cobalt and manganese oxide (NCM) cathode.
The company had been a supplier of cathodes to Samsung SDI for small batteries.
It began supplying cathode with high amounts of nickel in 2020 for use in energy storage systems. It supplies NCM523 (nickel, cobalt and manganese in 5 to 2 to 3 ratio) to Samsung SDI.
Cosmo AM&T will likely produce NCM811 cathode if it does decide to build a factory in the US. It is already testing and verifying the material locally.
The company aims to manufacture expand its annual cathode production volume from the current 10,000 metric tonnes to 20,000 metric tonnes within the year.
Last year, it recorded 371.2 billion won in annual revenue and 26.8 billion won in annual operating income.