Korea Zinc and LG Chem Successfully Produce Prototype Two Weeks After Precursor Plant Trial Operation Start

2022 Joint Venture 'Hanguk Jeonguchae' Established
Ulsan Plant Completed in March... Annual Capacity of 20,000 Tons
"Mass Production to Begin Quickly After Certification Process"

Korea Zinc announced on the 17th that it successfully produced prototypes just two weeks after the trial operation at its precursor production plant, which was completed in March this year with an annual capacity of 20,000 tons.

Korea Zinc and LG Chem established a joint venture, Korea Precursor Co., Ltd. (KPC), in August 2022 with a total investment of 200 billion KRW. The company stated, "By combining the technological capabilities of Korea Zinc and LG Chem, we successfully realized precursor characteristics in the shortest time in the industry while securing quality," adding, "We expect to smoothly achieve the goal of mass production within this year."

During the trial operation, a production method that dramatically enhanced precursor production process capability was applied, including the use of the world's largest capacity reactor. Through this, Korea Precursor can produce higher quality precursors than other competitors such as Chinese companies, while simultaneously improving production efficiency.

This achievement was made through pure domestic cooperation between Korean companies, not through technology partnerships with overseas firms. It represents the localization of precursors, which have an absolute dependency on China, and the establishment of a domestic production base. It is also significant in that it presents a way for global companies to effectively respond to external regulations such as the Inflation Reduction Act (IRA) and the Critical Raw Materials Act (CRMA), beyond just the domestic market.

Ulsan Ulju-gun Onsan-eup Korea Electric Bulb Co., Ltd. exterior view
[Photo by Korea Zinc]

Precursors are raw materials for cathode active materials, which are key components of secondary batteries. They account for about 40% of the production cost of secondary batteries. Precursors are an intermediate stage of cathode materials that determine battery performance and are made by combining nickel, cobalt, manganese, and other elements.

A representative of Korea Precursor Co., Ltd. said, "Through cooperation between Korea Zinc’s subsidiary Kemco and LG Chem, competitive precursor production has become possible, laying a foothold for expanding customers and increasing sales," adding, "We will proceed to mass production quickly after completing the relevant certification procedures."