Choi Yoon-ho, center, CEO of Samsung SDI and Lee Dong-chae, third from left, chairman of EcoPro Group, pose during a ceremony marking the completion of a joint venture cathode manufacturing plant in Pohang, North Gyeongsang Province, Oct. 21. Courtesy of Samsung SDI

By Baek Byung-yeul

Samsung SDI boosted its capability in the electric vehicle (EV) battery business by completing the construction of a joint-venture cathode factory in Pohang, North Gyeongsang Province, the company said Friday.

Samsung SDI said EcoPro EM, a joint venture between the company and battery material maker EcoPro BM, held a ceremony marking the completion of their CAM7 plant in the southeastern port city.

The CAM7 plant is able to produce 54,000 tons of cathodes a year, which ranks it at No. 1 globally. Cathode is a key material for EV batteries and accounts for about 40 percent of battery production costs.

Samsung SDI said the new plant will begin to produce cathode materials at full capacity in the first quarter of 2023 and every cathode produced there will be supplied to Samsung SDI's mainstay Gen.5 and Gen.6 batteries.

The CAM6 plant, which was completed in 2021, and the CAM7 factory will enable Samsung SDI to produce 90,000 tons of cathodes a year.

Samsung SDI said the new plant will also play a pivotal role in upgrading Korea's economic competence at a time when securing raw materials has become crucial.

"With countries and companies trying to take the lead in the battery and EV industries, the completion of the CAM7 plant will be a milestone event that will pave the way for the country's future competitiveness," Choi Yoon-ho, CEO of Samsung SDI, said during the ceremony.