Korea Zinc-LG Chem Joint Venture Starts Mass Production of Precursors..."Breaking Free from China Dependence"

Korea Precursor Company (KPC), a joint venture between Korea Zinc and LG Chem, has entered mass production of precursors, the key raw material for cathode materials in secondary batteries. It is expected that by enhancing cost competitiveness through full-scale production, the current import dependency on China, which approaches 97%, can be reduced.

A view of the Korea Tungsten Corporation located in Ulju-gun, Ulsan. Provided by Korea Zinc

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On the 21st, KPC announced that it has completed the final procedures, including producing prototypes and undergoing quality verification through customers, and has officially entered the mass production system. With the first mass production scheduled for the first half of this year, production capacity will be gradually increased, aiming to operate at maximum capacity from the second half of the year.

Domestic secondary battery companies have so far relied entirely on China for cathode material supplies. According to the Korea International Trade Association, the import dependency on China for domestic precursors reached 97% in the first half of last year. Precursors, a type of compound mixing nickel, cobalt, manganese, etc., account for about 60% of the manufacturing cost of cathode materials, and cathode materials account for about 40% of the battery manufacturing cost. By entering full-scale mass production and improving cost competitiveness, KPC is expected to reverse this situation.

Furthermore, KPC is focusing on the production of ‘high-nickel precursors.’ ‘High-nickel precursors’ increase the nickel content in the precursor to over 80%, enhancing energy density and output. KPC has established the world’s largest capacity reactor and introduced a recycling new process that incorporates Korea Zinc’s smelting technology know-how, maximizing precursor production and securing technological capabilities to achieve cost competitiveness.

Heo Gyun, CEO of KPC, stated, “Since precursors are intermediate goods rather than finished products, it is very important to meet the standards of customers who manufacture finished products,” and added, “To stay ahead in competition with Chinese precursors in the mid to long term, we will continue to invest in facilities and further advance precursor technology.”

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