This image shows cathode material product manufactured by LG Chem Ltd on Nov. 22, 2022.
SEOUL, Aug. 7 (Korea Bizwire) – South Korea’s battery material companies are intensifying efforts to boost local precursor production capabilities, aiming to decrease reliance on imports from China while ensuring stable procurement, in light of the implementation of the U.S. Inflation Reduction Act (IRA).
LS Corp., the holding company of the electric power equipment enterprise LS Group, plans to initiate the construction of a battery precursor plant in the Saemangeum industrial complex this year in collaboration with L&F Corp. a Daegu-based cathode producer for lithium-ion batteries, with an investment of 1.84 trillion won (US$1.4 billion).
The plant aims to commence mass precursor production between 2025 and 2026 and increase annual output to 120,000 tons by 2029.
In June, POSCO Holdings Inc. and POSCO Future M Co. entered a joint venture agreement with Chinese precursor company CNGR Advanced Materials Co., focusing on nickel and precursor production for secondary batteries.
POSCO Future M, a manufacturer of basic industrial materials and battery components, is concurrently overseeing construction of a precursor plant with an annual output capacity of 45,000 tons.
The plant is located in proximity to a cathode plant in Gwangyang, South Jeolla Province, completed in November of the previous year.
An investment of 1.2 trillion won is projected for expansion within the Saemangeum industrial complex by 2028.
Meanwhile, LG Chem Ltd. has partnered with China’s Huayou Cobalt CO. to establish a precursor plant in the Saemangeum industrial complex by 2028, with an investment of 1.2 trillion won.
SK On Co. reached an agreement with two battery component partners, EcoPro Co. and China’s Green Eco-Manufacture, to establish a tripartite joint venture focused on precursor production.
According to the Korea International Trade Association, China was the primary source of imports for 10 out of 16 secondary battery materials in the period from January to May of the current year.
Of particular significance is South Korea’s substantial reliance on China, accounting for 97.5 percent of its precursor imports.
J. S. Shin (js_shin@koreabizwire.com)
