Jeonnam Province and POSCO Chemical Sign Investment Agreement for Secondary Battery Core Material Production Plant

600 Billion KRW Scale... Expected to Create Jobs for Over 140 People

[Muan=Asia Economy Honam Reporting Headquarters, Reporter Yoon Jamin] Jeonnam Province announced on the 7th that it signed a 600 billion KRW investment agreement with POSCO Chemical Co., Ltd. to establish a precursor production plant, a key raw material for cathode materials of secondary batteries, in the Gwangyang Bay Area.

According to the agreement, POSCO Chemical will complete a precursor production facility with an annual capacity of 100,000 tons on approximately 60,000 pyeong of industrial complex land in the Gwangyang area by 2026. It is expected to create about 140 jobs.

The precursor, a key raw material for cathode materials that determine the capacity and performance of secondary batteries, is a substance mixed with nickel, cobalt, manganese, and others. Adding 0.5 kg of lithium to 1 kg of precursor produces 1 kg of cathode material.

Currently, POSCO Chemical has a cathode material production facility with a capacity of 90,000 tons in the Yulchon Industrial Complex in Gwangyang, supplying materials for 1 million electric vehicles. With this investment, the company plans to raise the self-sufficiency rate of precursors, which have mostly been imported, to over 60% by 2025.

This investment is expected to accelerate the establishment of a full-cycle secondary battery industrial ecosystem centered on production, demonstration, and research support in the Gwangyang Bay Area, which Jeonnam Province has persistently promoted, significantly contributing to Jeonnam's position as a leading region for secondary batteries.

Min Kyung-jun, CEO of POSCO Chemical, said, “We judged the Gwangyang Bay Area as an optimal location for the electric vehicle battery materials industry, leading us to invest in a large-scale precursor business following cathode materials. We will strive to become a company that advances the carbon-neutral era and grows together with local residents.”

A Jeonnam Province official emphasized, “By establishing precursor production facilities following lithium and cathode material plants in the Gwangyang Bay Area, we have laid the foundation for future new growth industries. Along with producing key secondary battery materials, we will complete the forward and backward value chain of secondary batteries linked to the waste battery resource circulation business, developing the eastern region of Jeonnam into a global hub for the electric vehicle battery industry.”

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