South Korean metal producer POSCO Holdings and Chinese language battery precursor producer CNGR have began building of nickel and precursor manufacturing vegetation for secondary batteries in Pohang, South Korea.
The businesses will make investments roughly KRW 1.5 trillion ($1.09 billion) to construct the vegetation, and mass manufacturing is scheduled to start in 2026.
POSCO CNGR Nickel Answer, a nickel refining three way partnership (JV) with a 60:40 fairness cut up between POSCO and CNGR, will course of nickel matte with roughly 70% purity from CNGR’s nickel smelting subsidiary into 50,000 tons of 99.9% high-purity nickel yearly, for use as precursor materials for batteries ample for 1.2 million EVs.
CNP New Materials Know-how, a precursor manufacturing JV with an 80:20 fairness cut up between CNGR and POSCO Future M, will use high-purity nickel from POSCO CNGR Nickel Answer to provide 110,000 tons of high-purity nickel precursors yearly. POSCO Future M plans to make use of these precursors to fabricate cathode supplies, optimizing its inside provide chain.
Precursors decide the capability and lifespan of secondary batteries and account for about 60% of the price of cathode supplies, however solely 26% of South Korean demand was met by native manufacturing as of 2021.
“POSCO Group and CNGR will set up a steady provide chain for rechargeable battery supplies primarily based on enterprise know-how and technological prowess and can proceed to reinforce enterprise synergies,” mentioned Jun-hyung Kim, Head of Rechargeable Battery Supplies at POSCO Holdings.
Supply: POSCO Holdings