Posco to build further battery materials plants with support from China
The South Korean Posco Group is building two factories for the production of nickel and precursor materials for electric car batteries in the South Korean city of Pohang together with the Chinese battery materials company CNGR Advanced Material.
The factories, in which the partners are investing a total of 1.5 trillion won (1.1 billion euros), will each produce 50,000 tonnes of nickel and 110,000 tonnes of precursors annually, enough for the battery cells of about 1.2 million electric cars. The goal is to lay the foundation stone for the plants in the fourth quarter of this year and start commercial operation in 2026.
The material can then be processed directly on site: Posco is also planning its third factory for cathode materials in South Korea in Pohang, which is to go into operation in 2025. Up to 60,000 tonnes of cathode materials per year are to be produced there – under its own management.
Two separate agreements have been signed for the two new factories, according to South Korean media. The nickel plant will be built under a 60:40 agreement, so Posco has the majority here. The plant for the precursor materials is a separate 20:80 project, in which CNGR is shouldering the bulk of the investment, but also has the say.
The Chinese company CNGR Advanced Material, with which Posco is now planning the two new factories, is a cobalt supplier to Tesla. Posco says the joint ventures will help ensure stable sourcing of key battery components and meet US requirements for battery production to receive tax credits under the Inflation Reduction Act.
0 Comments