POSCO Chemical to Build Secondary Battery Plant in Yeongilman 4 Industrial Complex... 600 Billion KRW Investment MOU with Gyeongbuk Province

Following the 2019 Artificial Graphite Anode Factory, Another Large-Scale Investment in the Region

[Asia Economy Yeongnam Reporting Headquarters Reporter Dongguk Lee] On the 8th, Gyeongbuk Province and Pohang City signed a Memorandum of Understanding (MOU) for the establishment of a secondary battery cathode material factory at POSCO Chemical and Pohang City Hall, attended by Governor Lee Cheol-woo, Mayor Lee Kang-deok of Pohang, and POSCO Chemical CEO Min Kyung-jun.

Through this investment agreement, POSCO Chemical, the only company in the world supplying both cathode and anode materials for secondary batteries, will invest 600 billion KRW by 2024 to build a cathode material production plant with an annual capacity of 60,000 tons on a 122,100㎡ (37,000 pyeong) site within the Yeongilman 4 General Industrial Complex.

The new factory is expected to create about 230 jobs, and along with attracting the cathode material factory, a core material of secondary batteries, large-scale follow-up investments in precursors, recycling, lithium, and other secondary battery fields are also anticipated.

The secondary battery materials business is a key new growth business actively promoted at the POSCO Group level. POSCO Chemical is rapidly expanding its cathode material production capacity in preparation for the rapid growth of the electric vehicle and battery markets.

Currently, the annual production capacity of 40,000 tons will increase to a total of 100,000 tons by 2023 through the expansion of the Gwangyang plant line. With the establishment of the Pohang plant, the production capacity in Korea alone will reach 160,000 tons by 2025.

Cathode materials are one of the four major battery materials (cathode, anode, separator, electrolyte) and are the core material that determines battery capacity, i.e., how far a vehicle can travel on a single charge. They account for nearly 40% of the battery manufacturing cost. The NCMA (Nickel-Cobalt-Manganese-Aluminum) cathode materials produced by POSCO Chemical enable driving over 500 km on a single charge.

With the construction of the cathode material factory in the Yeongilman 4 Industrial Complex through this agreement, Pohang is expected to firmly establish its position as a leading K-Battery city by having the production infrastructure for both cathode and anode materials, which are key secondary battery materials.

Min Kyung-jun, CEO of POSCO Chemical, stated, "POSCO Chemical plans to significantly increase the production capacity of cathode materials, a core material of the rapidly growing secondary battery industry worldwide," adding, "We expect to strengthen the competitiveness of the secondary battery materials business through this investment."

Lee Kang-deok, Mayor of Pohang, said, "With the large-scale investment by POSCO Chemical following EcoPro and GS Construction, Pohang has laid the foundation to lead K-Battery," emphasizing, "By focusing on fostering the secondary battery industry in preparation for the post-steel era, we will concentrate administrative efforts to create jobs, revitalize the local economy, and drive regional development."

Governor Lee Cheol-woo of Gyeongbuk Province pledged, "The steel city Pohang is transforming into a battery city in the era of the 4th Industrial Revolution," and added, "We will focus provincial government capabilities on creating jobs so that young people do not leave the region by establishing an ecosystem for secondary battery technology development and manufacturing innovation in Pohang."

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