Posco said on Wednesday that it will spend 1.5 trillion won with China’s CNGR to build nickel and precursor factories in Pohang, South Korea.
Posco and CNGR will own 60% and 40% of the stock, respectively, of the nickel processing factory that will produce nickel sulfate.
For the precursor factory, Posco will own 20% stock while CNGR will own 80%.
The nickel processing factory will have an annual capacity of 50,000 metric tonnes while the precursor factory’s will be 110,000 metric tonnes.
The combined amount is enough to be used on batteries that can power 1.2 million electric vehicles.
The factories are expected to start mass production in 2026.
CNGR is the world’s largest precursor manufacturer. Posco supplies its materials to battery cell makers LG Energy Solution, Samsung SDI and Ultium Cells, the joint venture between LG Energy Solution and General Motors.
The South Korean chemical giant has already accumulated over 100 trillion won worth of orders from its customers.