POSCO Chemical and OCI Achieve First Domestic Production of Anode Material 'Pitch'

Joint Venture 'P&OChemical' to Produce 15,000 Tons of Pitch
74.5 Billion KRW Investment... Localization and Internalization of Battery Materials

[Asia Economy Reporter Hwang Yoon-joo] POSCO Chemical is embarking on the localization of "pitch," a battery anode coating material that has been entirely imported until now. As the only company in Korea that produces both cathode and anode materials, which are core battery materials, POSCO Chemical plans to further strengthen its global competitiveness through the localization and internalization of advanced materials.

On the 26th, POSCO Chemical announced that it will invest a total of 74.5 billion KRW to produce 15,000 tons of pitch for anode coating, a key material for secondary batteries, through its joint venture P&OChemical. P&OChemical is a joint venture established in July last year with POSCO Chemical holding 51% and OCI holding 49% of the shares. The investment cost for this project will be sequentially contributed by both companies according to their shareholding ratios.

The pitch to be produced this time is a high softening point pitch, a carbon material manufactured by heat-treating residues obtained from petroleum distillation. High softening point pitch is mainly used for anode surface coating to improve the charge-discharge efficiency and extend the battery life of secondary batteries.

With the rapid growth of the battery market, the demand for coating pitch, an essential material for anode production, is also increasing. Through this investment, POSCO Chemical expects to achieve supply stability of core anode materials, customized quality production, and cost reduction.

OCI, the only company in Korea possessing pitch production technology, is expected to increase profits through this collaboration by entering a new business area producing petroleum-based high softening point pitch, moving beyond its existing pitch production using steel by-products.

P&OChemical plans to continuously expand its business into the high value-added advanced chemical materials sector by producing 50,000 tons of high-purity hydrogen peroxide for semiconductor cleaning in 2022 and pitch for anode coating, a secondary battery material, in 2024.

On the 26th, POSCO Chemical announced that it will invest a total of 74.5 billion KRW to produce 15,000 tons of pitch for anode coating, a key material for secondary batteries, through its joint venture P&OChemical.