Korea’s largest steelmaker Posco will build a second cathode production facility in the country next year. It will produce 6,000 tons of cathode a year before they are to expand production capacity to 50,000 tons by 2022.
Posco claims growing global demand for batteries including those for electric cars being behind the decision.
The company has acquired a 50,000 sqm site in the Gwangyang Bay Free Economic Zone. The initial phase of construction is scheduled to be completed in 2019. Only the second phase of expansion will see capacity increased by 50,000 tons per year by 2022. Overall, this will enable Posco to produce 62,000 tons of lithium-ion cathode material per year.
Posco will also build a 30,000-ton lithium-processing plant at this site and a 20,000-ton nickelprocessing facility.
The company’s board last week approved a capital increase of 113 billion won (105m dollars).
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