‘POSCO Silicon Solution’ Next-Generation Silicon Anode Material Factory Completed in Pohang

Completion Ceremony on the 7th... Pohang City to Become a Global Hub for Secondary Battery Cathode and Anode Materials Industry

Mayor Lee: "We Will Strive to Make Pohang a Key Global City in the Secondary Battery Industry"

On the 7th, Pohang City announced that a comprehensive completion ceremony for the upper and lower processes of a silicon anode material factory with an annual production capacity of 550 tons was held at the Yeongilman Industrial Complex in Buk-gu.

POSCO Silicon Solution's next-generation silicon anode material factory was completed on the 7th in Pohang. Provided by Pohang City

The event was attended by key local industry-academia-research figures including Lee Kang-deok, Mayor of Pohang; Yang Geum-hee, Deputy Governor for Economy of Gyeongbuk Province; Kim Jun-hyung, Head of Secondary Battery Materials at POSCO Holdings; Na Ju-young, Chairman of the Chamber of Commerce; Joo Se-don, Director of Pohang Institute of Industrial Science and Technology; and Lee Jae-woo, CEO of POSCO Silicon Solution. The program included business introductions, completion reports, cutting performances, and factory tours.

This completion ceremony marks the first phase of the investment plan, with approximately 59.1 billion KRW invested to establish an annual production capacity of 550 tons, capable of producing batteries for 275,000 electric vehicles. The goal is to build a silicon anode material production system with an annual capacity of 25,000 tons by 2030.

Silicon anode materials are emerging as next-generation anode materials with about four times higher energy density than graphite-based anode materials, which are currently mostly used in lithium-ion batteries. They are expected to improve electric vehicle driving range and reduce charging time.

In 2020, silicon anode materials accounted for only 1.2% of the anode material market with 6,000 tons, but by 2027, this is expected to increase to approximately 320,000 tons, representing 10.1% of the market.

Moreover, the compound annual growth rate (CAGR) of silicon-based anode material from 2020 to 2027 is projected to be 76.6%, showing rapid growth compared to other materials (anode active materials).

POSCO Group, which is promoting the establishment of the entire value chain for secondary battery materials, acquired Terra Technos, a silicon anode material developer, in July 2022 to advance its next-generation anode material business and renamed it ‘POSCO Silicon Solution.’

POSCO Silicon Solution plans to build the first phase of silicon anode material production facilities based on investment from POSCO Holdings and to commence full-scale production and sales.

Going forward, POSCO Group plans to strengthen its competitiveness in next-generation secondary battery materials such as silicon anode materials, lithium metal anode materials, and solid electrolytes, as well as lithium and other raw materials for secondary battery materials, and cathode and anode materials, in line with one of its seven future innovation tasks: ‘Securing competitiveness and innovative technology in secondary battery materials.’

Pohang City has firmly established itself as the center of South Korea’s secondary battery industry by consecutively receiving designations such as the secondary battery specialized complex in July last year, the Global Corporate Innovation Park, the Secondary Battery Opportunity Development Special Zone, and the Regulatory Free Zone candidate for recycling core parts of electric vehicles this year.

The city plans to expand industries not only in competitive material industries but also in eco-friendly electric ships and recycling of core electric vehicle parts, diversifying its secondary battery industry portfolio.

Mayor Lee Kang-deok said, “The completion of this factory is significant as a mass production facility of innovative technology that can secure the next-generation core materials market. The city will lead groundbreaking technology development and industrialization of the secondary battery industry with companies such as POSCO Holdings, striving to make Pohang a key global hub city for the secondary battery industry beyond South Korea.”