POSCO Group Simultaneously Breaks Ground on Nickel and Precursor Production Plants

Joint Venture with CNGR in China... Groundbreaking in Pohang on the 31st

POSCO CNR Nickel Solution logo

POSCO Group is partnering with China’s CNGR, the global leader in precursor (battery cathode intermediate material) market share, to establish a production base for nickel and precursors for secondary batteries in Pohang.

POSCO CNG Nickel Solution and CNP New Material Technology broke ground on nickel refining and precursor production plants, respectively, on the 31st at the Yeongilman 4 Industrial Complex in Pohang. POSCO CNG Nickel Solution is a nickel refining corporation established with a 60:40 equity split between POSCO Holdings and CNGR. CNP New Material Technology is a precursor production corporation established with a 20:80 equity investment by POSCO Future M and CNGR. POSCO CNG Nickel Solution and CNP New Material Technology plan to invest a total of approximately 1.5 trillion KRW to complete the nickel and precursor plants and begin mass production in 2026.

Nickel is a key material that determines the capacity of secondary batteries for electric vehicles, and its demand continues to increase. Precursors determine the capacity and lifespan of secondary batteries and account for about 60% of the cost of cathode materials.

The nickel refining plant of POSCO CNG Nickel Solution, which broke ground this time, will import nickel mats with about 70% purity, an intermediate material, from CNGR’s nickel smelting corporation and produce high-purity nickel for secondary batteries with 99.9% purity. The production capacity of high-purity nickel at the nickel refining plant is 50,000 tons per year in terms of pure nickel, which is enough to make about 1.2 million electric vehicles.

The precursor plant of CNP New Material Technology, which also broke ground on the same day, has an annual production capacity of 110,000 tons and will produce precursors using the high-purity nickel from POSCO CNG Nickel Solution. Additionally, POSCO Future M plans to produce cathode materials using the precursors produced by CNP New Material Technology, increasing the internalization rate of intermediate materials such as precursors and strengthening the value chain to enhance business competitiveness.

Pohang City was designated as a national advanced strategic project specialized complex for secondary batteries in July last year, and POSCO Group’s expansion of investment in secondary battery materials business is expected to contribute to revitalizing the advanced industry within the region and the development of the local economy.

CNP Shinsosae Technology Logo

About 300 people attended the joint groundbreaking ceremony of POSCO CNG Nickel Solution and CNP New Material Technology, including Lee Kang-deok, Mayor of Pohang; Baek In-gyu, Chairman of Pohang City Council; Kim Hak-hong, Vice Governor of Gyeongbuk Province; Kim Jun-hyung, Head of Secondary Battery Materials at POSCO Holdings; Yoo Byung-ok, President of POSCO Future M; and Wu Xiaoge, Vice Chairman of CNGR.

Mayor Lee Kang-deok of Pohang said, “With this groundbreaking, I hope the two companies will write another chapter of history in Pohang, and we will spare no administrative support to make Pohang the center of that history.”

Kim Jun-hyung, Head of Secondary Battery Materials, said, “POSCO Group and CNGR will establish a stable supply chain for secondary battery materials based on business know-how and technological capabilities and strengthen synergy between businesses.”

POSCO Group plans to continue investing in the secondary battery materials business even during the electric vehicle market downturn (chasm, a temporary stagnation in a growth industry), securing stable raw material self-sufficiency within the group for nickel, lithium, etc., and steadily building the group’s secondary battery materials value chain, including cathode and anode materials, recycling, and next-generation materials.

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