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August 27, 2021

Posco Chemical to build new EV battery cathode plant in China

Korean giant expanding capacity in EV traction battery components.

By David Leggett

South Korea’s Posco Chemical Company this week announced plans to invest KRW281bn (US$240m) in China to expand its capacity to produce cathodes and precursors for electric vehicle (EV) batteries.

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The company plans to build a new plant in Tongxiang in China’s Zhejiang province, next to two smaller facilities operated by two separate joint ventures between Posco and China’s largest cobalt producer Zhejiang Huayou Cobalt.

The new plant will have a production capacity of 30,000 tons of cathodes and precursors per year, enough to supply up to 335,000 EVs fitted with 60kwh battery packs. Construction is scheduled to begin in the second half of 2021.

The two existing plants have a combined capacity of 5,000 tons of cathodes and precursors per year.

Zhejiang Huayou Cobalt also owns a number of cobalt and nickel mines and is said to supplyaround 50% of global demand for cobalt, a key material used in the production of lithium-ion batteries.

Posco Chemical, part of South Korea’s largest steel-making group, has been expanding aggressively into the EV battery components/materials sector in recent years to tap into the rapid growth in EV sales across the world.

In July it announced plans to invest KRW600bn to build a new cathode materials plant in South Korea’s port city of Pohang with an annual capacity of 60,000 tons. The company currently operates cathode materials plants in the South Korean cities of Gumi and in Gwangyang.

Free Report
img

What does the future hold for the US electric vehicles market?

The US Electric Vehicles (EV) market has established itself as one to watch. Despite China maintaining the number one spot, the US holds significant standing as one of the major EV markets, with GlobalData’s whitepaper identifying a strong growth trajectory within the forecast period. This report further analyzes the trends, market drivers, and government incentives set to influence and facilitate the market.   This report also looks beyond the US and touches on environmental concerns set to drive the EV market worldwide.   Want to find out more? This report demonstrates GlobalData Explorer’s sector analysis capabilities, showing how you can:  
  • Get historical and forecast market sizing data, with country specific insight for 22+ of the world’s largest industries
  • Track sector dealmaking activity, to view aggregate volumes, specific deals and top investors for all major deal types in M&A, Capital Raising, and Partnerships
  • Analyze news from GlobalData Explorer’s News Database – enable screening and alerts by industry, company, geography and news sentiment for filtered insight
  • Identify and track the key disruptive trends that are keeping the top digital thought leaders talking through social media analytics
  Consult this report now to find out how you and your company can benefit from our Explorer platform.
by GlobalData
Enter your details here to receive your free Report.

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