South Korea’s Posco Chemical Organization this week introduced plans to invest KRW281bn (US$240m) in China to increase its capacity to make cathodes and precursors for electrical vehicle (EV) batteries.
The corporation plans to create a new plant in Tongxiang in China’s Zhejiang province, next to two more compact facilities operated by two different joint ventures between Posco and China’s greatest cobalt producer Zhejiang Huayou Cobalt.
The new plant will have a production capacity of thirty,000 tons of cathodes and precursors for every calendar year, plenty of to offer up to 335,000 EVs fitted with 60kwh battery packs. Construction is scheduled to commence in the 2nd half of 2021.
The two present plants have a blended capacity of five,000 tons of cathodes and precursors for every calendar year.
Zhejiang Huayou Cobalt also owns a range of cobalt and nickel mines and is said to supplyaround fifty% of international need for cobalt, a vital material applied in the production of lithium-ion batteries.
Posco Chemical, aspect of South Korea’s greatest steel-creating group, has been growing aggressively into the EV battery factors/elements sector in the latest several years to tap into the immediate advancement in EV gross sales throughout the entire world.
In July it introduced plans to invest KRW600bn to create a new cathode elements plant in South Korea’s port city of Pohang with an yearly capacity of sixty,000 tons. The corporation now operates cathode elements plants in the South Korean towns of Gumi and in Gwangyang.