Pohang City Secures Next-Generation Battery Leadership... Achieves Success in Attracting Investment for Electrolyte Production Business

Unico Precision Chemical and Australia's AVESS Energy Form Joint Venture, Invest in Establishing Unico ESS

Invest 9.3 Billion KRW to Build Eco-Friendly Next-Generation Battery Electrolyte Production Plant

Pohang City and North Gyeongsang Province signed a memorandum of understanding on investment for the production of vanadium redox flow battery (VRFB) electrolytes with Unico Precision Chemical, Australia's AVESS Energy, and Unico ESS at the mid-sized conference room of Pohang City Hall on the 29th.

Pohang City Hall.

Approximately 20 business representatives attended the event, including Deputy Mayor Jang Sanggil, Lee Nameok, Director of Airport Investment Headquarters of North Gyeongsang Province, Lee Jaejin, Vice Chairman of Pohang City Council, Dane Richmond, Counselor at the Australian Embassy in Korea Trade and Investment Section, Song Bangcharang, CEO of Unico Precision Chemical, Yoo Youngchan, CEO of AVESS Energy, and Lee Yongjin, CEO of Unico ESS.

Unico ESS, a subsidiary jointly established by Unico Precision Chemical and Australia's AVESS Energy, will invest 9.3 billion KRW to build a vanadium redox flow battery electrolyte production plant on a 24,235㎡ (about 7,300 pyeong) site in the foreign investment zone of the Yeongilman General Industrial Complex in Pohang, creating 60 new jobs.

Unico ESS is expected to secure 3.7 billion KRW in operating funds through investment from AVESS Energy, a VRFB energy storage solutions company, and at the same time, by investing in shares of an Australian mining company, secure a stable supply chain of vanadium.

VRFB uses a liquid electrolyte with water as its main component, which means there is almost no risk of fire or explosion even if the battery is damaged. In addition, its lifespan is longer than that of conventional lithium-ion batteries, lasting about 20 years, and it can be reused, making it a next-generation environmentally friendly battery that is gaining attention.

VRFB is expected to be used in energy storage systems (ESS) that require large-capacity energy storage, as well as in ships. With this investment, Unico ESS aims to enter not only the domestic market but also the global market.

Unico Precision Chemical was founded in 1976 as a supplier of water treatment products for POSCO cooling water, and has since focused on producing various chemical products such as rust removers and surface treatment agents for steel sheets, as well as corrosion inhibitors for oil pipes. Recently, the company has been expanding into new fields such as industrial special-function adhesives, graphite heat dissipation sheets for displays, industrial films, and vanadium battery electrolytes.

In 2018, the company was selected as a 'World Class 300' company by the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups, and in June this year, it was selected as an Excellent Long-standing Company of Pohang for 2024, establishing itself as a leading local company in Pohang.

Deputy Mayor Jang Sanggil stated, "The investment in the VRFB electrolyte business by Unico ESS will mark a new turning point in the development of Pohang's battery industry. I hope that Unico Precision Chemical's new challenge will serve as a catalyst for local SMEs in Pohang to enter the global market, and Pohang City promises its full support."