POSCO Holdings-GS Energy Establish Joint Venture for Secondary Battery Recycling

170 Billion Investment... '51:49' Joint Venture

POSCO Holdings and GS Energy held a contract signing ceremony (JVA) on the 6th at the POSCO Center in Seoul to establish the joint venture 'POSCO GS Eco Materials.' Attending the event were POSCO Group Chairman Choi Jeong-woo (third from the left) and GS Group Chairman Huh Tae-soo (second from the left), along with executives from both companies.

[Asia Economy Reporter Oh Hyung-gil] POSCO Holdings and GS Energy have joined forces in the secondary battery recycling business.

On the 6th, the two companies held a contract signing ceremony (JVA) at the POSCO Center in Seoul to establish a joint venture called 'POSCO GS Eco Materials.' POSCO Group Chairman Choi Jeong-woo and GS Group Chairman Huh Tae-soo, along with executives from both companies, attended the event.

Since starting executive exchange meetings in September last year, the two companies have been discussing cooperation plans for new businesses such as secondary battery recycling. They decided to invest a total of approximately 170 billion KRW to establish a joint venture with 51% and 49% stakes, respectively.

After signing the JVA, the companies plan to establish the corporation within this year. POSCO GS Eco Materials will not only engage in the secondary battery recycling business by collecting used batteries and extracting raw materials but also enter the battery lifecycle service (BaaS) business, including battery diagnosis, evaluation, and reuse.

Chairman Choi Jeong-woo stated, "Starting from 2030, the use of recycled materials from secondary batteries will be mandatory, led by Europe, so the secondary battery recycling market is expected to grow further. Through cooperation between POSCO Group and GS Group, we expect to create significant synergy effects not only in securing stable supplies of used batteries but also in building a new industrial ecosystem related to secondary battery recycling."

Chairman Huh Tae-soo said, "If we combine the business capabilities of the two groups, I am confident that we can respond to the industrial and social demands of energy transition and create new business opportunities. Let us strive to ensure that this cooperative project creates future growth for GS and POSCO as well as value for customers and society."

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