Pohang City Reborn as the 'Battery City'

[Asia Economy Reporter Park So-yeon] Pohang City is transforming into a 'battery city' by consecutively attracting electric vehicle battery material companies.

According to the industry on the 22nd, POSCO Chemical began construction last month on a production plant for artificial graphite anode materials, a core material for electric vehicle batteries, in Pohang, Gyeongbuk. Following this, EcoPro BM will start construction next month on a dedicated electric vehicle battery cathode material plant for Samsung SDI at the Yeongilman 1 General Industrial Complex in Pohang.

Named 'CAM6,' this plant will be operated by EcoPro BM, a joint venture with Samsung SDI. It will have an annual production capacity of 30,000 tons of cathode materials. Mass production is targeted for the first quarter of 2022.

In particular, 1.5 trillion KRW will be invested over the next five years to establish an ecosystem for cathode material production and recycling on a 50,000-pyeong site at the Yeongilman 1 General Industrial Complex in Pohang. EcoPro GEM, established to procure core cathode materials, will build an additional precursor plant. The current timing and scale are under review.

Earlier, POSCO Chemical began construction of an artificial graphite anode material plant on a 78,535㎡ site in the Blue Valley National Industrial Complex in Pohang, investing 217.7 billion KRW with a completion target of 2023. The plant will be developed in phases with an annual capacity of 16,000 tons, enough to supply approximately 420,000 electric vehicles based on 60kWh batteries.

The industry forecasts that the global electric vehicle market will rapidly grow at an average annual rate of over 25%, from about 3 million units in 2020 to more than 9.3 million units by 2025. This is why Pohang City is actively attracting companies related to electric vehicle batteries.

In particular, Pohang City is gaining attention as a core city for battery resource recycling following Gyeongsangbuk-do's designation as a 'Next-Generation Battery Recycling Special Zone.' Additional related companies are expected to move in.

Used electric vehicle batteries, which can be utilized across various industries, are emerging as a new growth engine with high residual value, often called the 'second semiconductor.' However, for commercialization, safety standards for battery diagnosis, performance evaluation, and remanufacturing must be established first.

This content was produced with the assistance of AI translation services.