POSCO Holdings and China’s CNGR have announced a major step in the global battery materials supply chain with the establishment of nickel and precursor production facilities in Pohang, South Korea. The announcement, made on May 31, coincided with the groundbreaking ceremony for these new plants.
The two companies, through their joint ventures POSCO CNG Nickel Solution and CNP New Material Technology, began construction at Pohang’s Yeongilman 4 Industrial Complex. POSCO CNG Nickel Solution, focused on nickel refining, is a joint venture with a 60-40 investment split between POSCO Holdings and CNGR. CNP New Material Technology, dedicated to precursor production, is established with a 20-80 investment ratio between POSCO Future M and CNGR.
The total investment for these projects is approximately 1.5 trillion won. Both facilities aim to commence mass production by 2026. The nickel refining plant will import nickel matte with 70% purity from CNGR’s nickel smelting operations and refine it to produce high-purity nickel at 99.9% purity, specifically for secondary batteries. This plant is expected to produce 50,000 tons of pure nickel annually, sufficient for manufacturing about 1.2 million electric vehicles.
The precursor plant will have an annual production capacity of 110,000 tons. It will utilize high-purity nickel from POSCO CNG Nickel Solution to produce precursors, which POSCO Future M will then use to produce cathode materials, essential components in lithium-ion batteries.
Pohang Mayor Lee Kang-deok expressed strong support for the project, stating, “With this groundbreaking, I hope the two companies will write another chapter of history in Pohang, and the city will provide all necessary administrative support to become the center of this new development.” His commitment highlights the local government’s role in fostering industrial growth and innovation.
Kim Jun-hyung, head of secondary battery materials at POSCO, emphasized the strategic importance of this collaboration, noting, “POSCO Group and CNGR aim to establish a stable supply chain for secondary battery materials and enhance business synergies based on our business know-how and technological capabilities.”
This collaboration between POSCO and CNGR underscores a significant advancement in the battery materials industry, enhancing the global supply chain and supporting the production of electric vehicles. The joint ventures are poised to position Pohang as a critical hub for battery material production, driving forward the clean energy transition.
