Electric Vehicle 1.2 Million Units
50,000 Tons of Nickel from 2026
110,000 Tons of Precursor Production Target
POSCO Group is advancing a nickel refining and precursor production project for secondary batteries in Pohang City in collaboration with the world's No.1 Chinese precursor specialist company.
POSCO Holdings and POSCO Future M announced on the 21st that they signed a joint venture agreement (JVA) with China's CNGR to cooperate in the production of nickel and precursors for secondary batteries. POSCO Holdings and CNGR will establish a nickel refining corporation with a 6:4 equity ratio to produce nickel sulfate, while POSCO Future M and CNGR will establish a precursor production corporation with a 2:8 equity ratio to produce precursors using nickel sulfate.
The production capacity of the nickel refining corporation and the precursor production corporation is approximately 50,000 tons per year of nickel sulfate and 110,000 tons per year of precursors based on pure nickel, respectively, with a total investment scale of about 1.5 trillion KRW. Both plants are planned to begin construction in the fourth quarter of this year at Yeongilman 4 Industrial Complex in Pohang City, aiming for mass production in 2026.
CNGR is expected to contribute to maximizing production efficiency of the nickel refining and precursor joint venture corporations based on its industry-leading nickel refining and precursor production technology and in-house engineering capabilities. Through this joint venture agreement, it will be possible to stably procure precursors, which currently rely mostly on imports with only about 13% domestic production.
Refining refers to the process of removing impurities mixed in a material to increase its purity. Precursors are intermediate materials just before cathode active materials, manufactured by blending raw materials such as nickel and cobalt, and are key substances that determine the capacity and lifespan of secondary batteries.
POSCO Holdings and POSCO Future M signed a joint venture investment agreement with China's CNGR on the 21st. (From left) Jeong Daeheon, Vice President of POSCO Future M; Yoo Byeongok, Vice President of POSCO Holdings; Lee Kyungseop, Executive Director; Deng Weiming, Director of CNGR; Zhu Zhongwen, Vice President. [Photo by POSCO Holdings]
The joint venture agreement signing ceremony was attended by Deng Weiming, CNGR President (Chairman), and Yoo Byung-ok, Vice President and Head of Eco-friendly Future Materials at POSCO Holdings, along with executives from both companies.
Vice President Yoo said, “Through this joint project with CNGR, a global leader in precursors, we plan to complete the nickel-precursor-cathode material value chain in Pohang, establish a stable supply chain, and further strengthen synergy between businesses.” President Deng said, “By establishing a joint venture with POSCO Holdings, a global leader in secondary battery materials, we believe we will become a reliable partner in the global market and open a new future for the secondary battery industry.”
As a leading company in eco-friendly future materials, POSCO Group is building the entire value chain of secondary battery materials from raw materials to cathode and anode materials, recycling, and next-generation materials to secure market leadership. Nickel is a key focus, with POSCO Holdings acquiring shares in Ravensthorpe, an Australian nickel mine and smelting company, in 2021, and currently promoting the construction of a nickel refining plant in Indonesia, the world's largest nickel producer and holder. POSCO is also continuously striving to increase self-sufficiency in secondary battery material raw materials within the group, such as starting construction last year on a nickel sulfate refining plant with an annual capacity of 20,000 tons in Gwangyang, utilizing nickel resources from New Caledonia, aiming for completion in the second half of this year.
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