POSCO Chemtech has begun the test run of its cathode material production facility located in Yeongi County, South Chungcheong Province. The company invested a total of 19 billion won in the construction of the plant completed back in September. Its annual production capacity is about 2,400 tons, which is equivalent to 10% of the gross domestic demand. Cathode materials are one of the four most important elements constituting a rechargeable battery. However, Korean secondary battery makers have depended heavily on imports for the materials. As such, the test operation at this time is more than significant for the value chain of the country’s rechargeable battery industry. Thanks to the excellent performance of domestic battery makers like Samsung SDI and LG Chem, Korea is taking the lead in the global rechargeable battery sector. Nevertheless, no less than 75% of the materials have to be imported each year from China and Japan, due mainly to the slow domestic production of cathode materials. According to the Ministry of Knowledge Economy, the domestic development rates of anode materials and liquid electrolyte are amounting to 70% and 86% respectively, while that of cathode substances is less than one percent. It is because the large quantity of graphite required to make the materials are not easy to procure and Korea’s processing technology is lagging behind those of other countries. “We are striving not only for the domestic procurement of cathode materials but also for the development of advanced, high-output products,” said POSCO Chemtech, adding, “In doing so, we will raise our share in the global cathode material market up to 40% before 2020.”