Posco Chemical Co., a unit of South Korean steel giant Posco, will invest 125.4 billion won ($107.7 million) to ramp up annual production capacity of lithium-ion secondary battery anode materials to 66,000 tons to promptly respond to burgeoning demand from the electric vehicle market.
The company said Monday that its board of directors approved its 125.4 billion won investment plan to up Li-ion secondary battery anode materials production capacity at its second plant in Sejong, central Korea, by 22,000 tons. After the expansion, the company will be capable of producing total 66,000 tons of Li-ion secondary battery anode materials annually by 2021.
The company currently produces Li-ion secondary battery anode materials from two plants. Its first plant churns out 24,000 tons annually. The second plant – a new factory which began mass production in full gear just this month – is capable of producing 20,000 tons. The latest investment is to ramp up output at the second plant by 22,000 tons, which in turn will bring up the second factory’s total output to 42,000 tons.
The company said it is also reviewing a plan to expand its Li-on battery anode materials’ annual production capacity to 76,000 tons, which is equivalent to supply 1.26 million electric vehicles fitted with 60-kWh battery packs.