Gyeongbuk Sangju Attracts Large-Scale Electric Vehicle Battery New Material Factory Worth 850 Billion Won... Reviving a Dead Industrial Complex

Joint Venture (SK Materials Group 14) and SK Materials to Establish Factory in Cheongri Industrial Complex

Gyeongbuk Province and Sangju City Sign Investment MOU ‥ Mass Production of Anode Materials and Basic Materials in 2023

Sangju City Hall, Gyeongbuk.

[Asia Economy Yeongnam Reporting Headquarters, Reporter Kim Yong-woo] A battery production plant worth 850 billion KRW will be established in Sangju, Gyeongbuk.

Sangju City announced on the 14th that it has attracted a battery material production plant to the Cheongri General Industrial Complex in Sangju through a joint venture battery material company (tentatively named SK Materials Group14) and the global advanced materials company ‘SK Materials’.

On the 14th, Sangju City, the joint venture company, and SK Materials signed an investment agreement for the establishment of the production plant at Sangju City Hall, with about 20 officials including Lee Cheol-woo, Governor of Gyeongbuk Province, Im Eui-ja, National Assembly member, Kang Young-seok, Mayor of Sangju, and Lee Yong-wook, CEO of SK Materials in attendance.

Under this investment agreement, the joint venture company and SK Materials will invest 850 billion KRW aiming for mass production of battery silicon anode materials in 2023.

Starting from October this year, a battery material plant will be constructed on a 234,961㎡ (about 71,000 pyeong) site in the Cheongri General Industrial Complex. The workforce will be 170 employees.

The joint venture company will first invest 550 billion KRW to begin construction of a silicon battery anode material production plant in October this year.

SK Materials plans to invest 300 billion KRW to start construction of a basic material manufacturing plant necessary for battery anode material production in the first quarter of 2022.

Silicon anode material is a material recognized as an innovative technology in the battery market because it has higher energy density and efficiency than graphite, which is traditionally used as an anode material, increasing battery capacity by 4 to 5 times and shortening charging time.

SK Materials is expected to play a significant role in realizing carbon neutrality in response to the climate crisis through new material battery development, strengthening national competitiveness through K-battery development, and revitalizing the local economy of Sangju by attracting large corporations.

It is also anticipated to establish its position as an ESG (Environmental, Social, and Governance) practicing company among global advanced materials companies.

Gyeongsangbuk-do Province and Sangju City have agreed to provide administrative and financial support to ensure smooth progress of the projects planned by the joint venture company and SK Materials.

Founded in 1982, SK Materials is a specialized advanced core materials manufacturing company that recorded sales of 955 billion KRW and operating profit of 239 billion KRW last year.

It is expected to surpass annual sales of 1 trillion KRW, having achieved sales of 541.8 billion KRW (operating profit of 130.2 billion KRW) in the first half of this year.

The joint venture company is a battery material specialized manufacturing company established at the end of September 2021 as a joint venture between the US battery anode material patent specialist Group14 Technologies and SK Materials.

Sangju City played a major role through aggressive ‘sales administration’ to attract this large-scale investment.

Despite the economic downturn caused by COVID-19, the city focused on investment attraction activities and succeeded in attracting a specialized company in the battery sector, one of the future new growth industries.

In April, Sangju City obtained information that SK Materials was looking for a business site suitable for chemical industry (C20) to establish a new business.

Recognizing that the new business field was battery manufacturing, a core of the electric vehicle era, Sangju City visited the company’s headquarters and explained the locational advantages and support measures of the Cheongri General Industrial Complex.

The Cheongri General Industrial Complex was zoned for chemical industry, and Sangju City had acquired the Woongjin Polysilicon plant, which had ceased operations by Shinra Industry, through auction and had owned it since January 2018.

Mayor Kang Young-seok met with Shinra Industry officials last month to request cooperation for attracting future new growth industries, and Shinra Industry reportedly accepted the mayor’s request willingly for the development of Sangju City.

Mayor Kang then visited SK Materials’ management, and Sangju City formed a dedicated T/F team to focus on this project. National Assembly member Im Eui-ja also joined the attraction efforts, promising active support.

At the signing ceremony, Mayor Kang Young-seok said, “Attracting companies to the Cheongri General Industrial Complex, which had been stagnant for a long time after the suspension of Woongjin Polysilicon plant operations, was a regional wish and the biggest issue,” adding, “I am truly pleased to fulfill the pledge to revive the Cheongri General Industrial Complex and the hopes of Sangju citizens.”

Mayor Kang said, “I hope this will be a starting point for the 100,000 citizens of Sangju to gain strength through the attraction of large corporations leading future industries,” and added, “We will further implement corporate-friendly policies so that the attracted companies can coexist and develop with the local community.”

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