Posco Chemical to build new cathode and precursor factory in China
It is its first factory abroad for battery materials
Posco Chemical said on Wednesday that they will build a new battery cathode and precursor factory at Tongxiang city in China. It will be the company’s first factory abroad for battery materials.
The factory will be built through its joint venture with Huayou Cobalt. Posco Chemical will spend 281 billion won on the factory.
The factory will produce 5,000 metric tonnes of cathodes per year and 35,000 metric tonnes of precursors per year when it is completed in 2023. Construction will begin within the year.
Posco Chemical and Huayou Cobalt formed two joint venture __ one for cathodes and another for precursors __ based at Toxiang city, Zhejiang Province, in March 2018.
Posco Group owns a 60% stake in the cathode venture and 40% in the precursor venture.
Posco Chemical said the new factory will manufacture high-nickel cathodes for Chinese and South Korean battery makers.
Meanwhile, the company said it will strengthen its relationship Huayou Cobalt going forward.
The Chinese firm produces 40,000 metric tonnes of cobalt a year and owns multiple mines related to raw materials needed for battery production, Posco Chemical said.
China accounted for 48% of Posco Chemical’s sales from its battery material business, the South Korean company stressed.
Posco Chemical said it also plans to form subsidiaries in the US and Europe at a later date.
The aim is to manufacture 110,000 metric tonnes per year of battery related materials abroad and 160,000 metric tonnes per year in South Korea by 2025.