Battery cathode maker Cosmo AM&T is planning to start operations of its new precursor line within the year, TheElec has learned.
The line, being set up at its headquarters in Chungju, North Chungcheong Province, will be using equipment acquired from STM, a subsidiary of battery maker Samsung SDI, in 2020.
The line is being set up to have a production capacity of 2,400 metric tonnes per year.
The precursors are likely to be used for NCM622 (nickel, cobalt and manganese in 6 to 2 to 2 ratio) cathodes, used in batteries for electric vehicles.
It could also be used for NCM523 cathode aimed at energy storage systems. Cosmo AM&T had supplied this cathode to Samsung SDI and LG Energy Solution in the past, which was received well by the customers.
Cosmo AM&T is setting up its own precursor production line to reduce its reliance on imports from China.
It spent around 75.6 billion won in 2020 to buy precursors from China’s CNGR.
Last year, for the first three quarters, it had spent 105.7 billion won.
Cosmo AM&T is aiming to expand its annual production capacity to 100,000 metric tonnes from the current 20,000 metric tonnes.
The latest precursor line can produce enough materials to be used to manufacture 30% of its current capacity.
Meanwhile, Cosmo AM&T recorded 371.1 billion won in revenue and 26.8 billion won in operating profit last year and is widely expected to exceed 400 billion won in revenue this year by South Korean analysts.