POSCO Future M Advances Nickel Battery Material Production in the Philippines

Joint Venture with MC Group... Construction of Nickel Alloy Production Plant
First Direct Overseas Production of Battery Material Raw Materials

POSCO Future M will begin producing nickel, a key raw material for battery cathode materials, in the Philippines using eco-friendly smelting technology.

On the 17th, POSCO Future M signed a Memorandum of Agreement (MOA) for a joint venture with Nickel Prime Solution (NPSI), a nickel-specialized subsidiary of MC Group, which focuses on mining development and renewable energy projects in the Philippines. The signing ceremony held at POSCO Center was attended by Kim Jun-hyung, President of POSCO Future M, Jung Dae-heon, Head of the Energy Materials Division, and Michael Chen, Chairman of MC Group.

POSCO Future M signed a Memorandum of Agreement (MOA) on the 17th for a joint venture with Nickel Prime Solution (NPSI), a nickel-specialized subsidiary of MC Group, which focuses on mining development and renewable energy projects in the Philippines. Kim Jun-hyung, President of POSCO Future M (left), and Michael Chen, Chairman of MC Group, are posing for a commemorative photo.

According to the MOA, POSCO Future M and NPSI will establish a joint venture (JV) in the Philippines for the nickel business. They will also promote the construction of a nickel mixed hydroxide precipitate (MHP) production plant using smelting technology jointly developed by POSCO Future M and the Pohang Institute of Industrial Science and Technology (RIST). This marks the first time POSCO Future M directly produces battery material raw materials overseas.

Nickel mixed hydroxide precipitate is an intermediate product produced through impurity removal processes from nickel ore and is used as a raw material for producing high-purity nickel sulfate for cathode materials. Nickel is a core raw material for cathode materials, and the higher its usage proportion, the greater the battery’s storage capacity. It is an important mineral for extending electric vehicle driving range, and demand is rapidly increasing alongside the global expansion of the electric vehicle market.

The nickel ore used in the joint venture plant will be supplied by MC Group. MC Group owns a mine in the Palawan region of the Philippines with approximately 40 million tons of ore reserves. Through additional equity investments and acquisitions in local mines, they plan to secure about 200 million tons of ore by 2026 and continue cooperation with POSCO Future M in the raw material sector.

Through this agreement, POSCO Future M expects to establish a production system in the Philippines, the world’s second-largest nickel producer, securing a stable supply chain for cathode material raw materials and enhancing business profitability.

In particular, the smelting technology applied to the joint venture is environmentally friendly, with a shortened process compared to commonly used smelting technologies, resulting in higher cost competitiveness and a reduction in carbon emissions by more than 50%. It is also evaluated as competitive from an ESG (Environmental, Social, and Governance) perspective.

Additionally, manufacturing cathode materials domestically using nickel mixed hydroxide precipitate produced in the Philippines can meet the 'qualified critical mineral' requirements stipulated by the U.S. Inflation Reduction Act (IRA), which is expected to help expand supply to the North American market.

Kim Jun-hyung, President of POSCO Future M, stated, "This will be an important milestone for strengthening profitability in the cathode material business and establishing an eco-friendly raw material supply chain."

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