[Alpha Biz=(Chicago) Reporter Paul Lee] The POSCO Group announced on the 21st that it will promote a nickel refining and precursor production business for secondary batteries in Pohang City.

Precursor is an intermediate material just before the cathode material, and is manufactured by mixing raw materials such as nickel and cobalt, and is a key material that determines the capacity and lifespan of a secondary battery.

POSCO Holdings and POSCO Future M signed a joint venture agreement (JVA) with China's CNGR, the world's No. 1 precursor company, to cooperate in the production of nickel and precursor for secondary batteries.

The joint venture produces nickel sulfate in the nickel refining corporation, which is established by POSCO Holdings and CNGR with a 6:4 stake, and the precursor production corporation, which is established by POSCO Future M and CNGR with a 2:8 stake each, uses the nickel sulfate to produce the precursor.

The total amount of investment is about 1.5 trillion won. The two plants plan to start construction in the fourth quarter of this year at Yeongil Bay 4th Industrial Complex in Pohang City, with the aim of mass production in 2026.

 

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