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POSCO Holdings. (Photo = Yonhap News) |
[Alpha Biz= Kim Jisun] POSCO Holdings has decided to dissolve the joint venture it established with China's CNGR for the production of nickel, a key raw material for secondary batteries.
On Tuesday, POSCO Holdings announced that its subsidiary, POSCO CNGR Nickel Solution, resolved to dissolve the company during a shareholders' meeting and will proceed with liquidation procedures by appointing a liquidator. Once the process is complete, the company will be removed from POSCO Holdings' list of subsidiaries.
POSCO CNGR Nickel Solution was founded last year as part of POSCO Group’s efforts to establish a supply chain for battery materials. The joint venture was formed with a 60:40 equity investment from POSCO Holdings and CNGR, respectively.
In May of last year, the company broke ground on a nickel production plant in the Yeongilman 4th Industrial Complex in Pohang, aiming for completion by 2026. The facility was expected to produce 50,000 tons of high-purity nickel annually to supply companies like POSCO Future M. However, reports indicate that construction work had not commenced following the groundbreaking ceremony.
POSCO Group’s decision to restructure the business is seen as a response to the slowdown in battery demand due to the sluggish electric vehicle market. While the company has decided to halt nickel production in Korea, it will continue its precursor production plans. Last year, POSCO Future M and CNGR jointly established CNP New Materials Technology with an 80:20 equity split to manufacture precursors.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
