Decision Made to Dissolve Posco C&G Nickel Solution at Shareholders' Meeting
Corporation Established with 60:40 Equity Investment by Posco Holdings and Chinese Company CNGR
POSCO Holdings is abandoning the project to establish a nickel joint venture factory for secondary batteries that it had been promoting in partnership with a Chinese company.
On the 11th, at the shareholders' meeting, POSCO Holdings announced that it resolved to dissolve its subsidiary, POSCO C&G Nickel Solution Co., Ltd., and will proceed with the liquidation process by appointing a liquidator. After completing the liquidation process, POSCO C&G Nickel Solution will withdraw from being a subsidiary of POSCO Holdings.
POSCO C&G Nickel Solution is a nickel refining corporation established with a 60:40 equity investment by POSCO Holdings and CNGR, a Chinese company that holds the global No. 1 market share in precursors.
The POSCO Group established the joint venture with CNGR, which possesses industry-leading nickel refining technology and precursor production technology, to produce nickel and precursors and utilize them as cathode materials for POSCO Future M, aiming to strengthen the value chain of the secondary battery materials business.
In May of last year, a groundbreaking ceremony was held for a refining plant to produce high-purity nickel in the Yeongilman 4 Industrial Complex in Pohang, but actual construction had not yet begun. The target mass production date announced at the time was next year. The company stated that how the site will be utilized has not been specifically decided.
A POSCO Holdings official explained, "We decided to withdraw from the business as part of responding to external environmental changes such as the electric vehicle market chasm and rebalancing the energy materials business," adding, "The precursor joint venture business with CNGR, which was promoted together, will continue to be pursued with POSCO Future M."
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