in a recent event held in seoul,south korea,cngr and posco group came together for a joint venture signing ceremony.the signing of the joint venture agreement(jva)marked the beginning of a partnership in the nickel refining and precursor industry,resulting in the establishment of the first-ever integrated refining and precursor industry base in south korea,with a capacity exceeding 100,000 tons.this milestone marks a significant achievement in the industry,as it is the first of its kind to be established in a country that has signed a free trade agreement(fta)with the united states.
the signing ceremony was attended by esteemed individuals from both posco and cngr,including yoo byung-ok,vice president of posco holdings,lee kyung-seop and baek gye-ju,executive officers,jung da-heon,vice president of posco future m,and yoon young-joo,executive director assistant from posco,alongside deng weiming,chairman and ceo of cngr,liu xingguo and deng jing,directors,deng chaobo,vice president and general manager of capital center,zhu zongyuan,vice president and cfo,liu yi,executive assistant to ceo,and jin donghuan,executive deputy general manager of the operating center.
the collaboration between posco and cngr will give rise to the first-ever value chain of"nickel-cathode precursor-positive electrode"in south korea,through a powerful amalgamation of expertise and resources
as a leading enterprise in the field of eco-friendly future materials,posco holdings is a multinational conglomerate with diverse interests in areas including steel,e&c,it,advanced energy,and materials.posco future m,a subsidiary of posco holdings,is the sole south korean manufacturer of both battery cathode and anode materials,and has emerged as a key player in the global battery materials market.
as per the agreement,both parties will establish a joint venture to engage in nickel refining and precursor collaboration,and partner with posco to establish a nickel refining company,producing battery-grade nickel sulfate.moreover,a precursor material company will be established in collaboration with posco future m,enabling comprehensive cooperation along the industrial chain.
during the ceremony,deng weiming,chairman and ceo of cngr,delivered a speech highlighting the strong complementarity between china and south korea in the battery material industry chain.cngr and korean companies have a long-standing history of collaboration and exchange,spanning over 8 years.last year,they signed a memorandum of understanding with the pohang city government,and today,they have officially established a joint venture with posco in pohang.this partnership between cngr and posco is poised to create a formidable alliance,propelling the global secondary battery industry towards a promising and prosperous future.
yoo byung-ok,vice president of posco,warmly welcomed cngr's establishment in pohang and congratulated both parties on the formation of the joint venture.he stated,"by collaborating with cngr,a global leader in precursor production,we will establish a secure supply chain and enhance business synergy by building a value chain that encompasses nickel,precursor,and cathode in pohang."
leading the new wave of progress in the global battery material industry and strengthening the global market competitiveness
as per the agreement,both parties shall commence the construction of a nickel refining and precursor project in the industrial park of pohang yongjei gate no.4.the total investment for this project is estimated at around krw 1.5 trillion.the project is expected to yield 50,000 metric tons of battery-grade nickel sulfate,and 110,000 metric tons of precursor materials,which will adequately cater to the demand for battery units for over 1.2 million electric vehicles.
being the industry's first"nickel precursor"joint venture project,both parties will be able to maximize complementary advantages.posco will fully leverage its strengths in positive and negative battery materials worldwide,as well as its industrial advantages in south korea.it will collaborate with cngr,which boasts leading technology in nickel refining and precursor production and engineering capabilities,to ensure the project is constructed and implemented to the fullest extent possible.this partnership aims to jointly respond to fluctuations in the global supply chain,enhancing the competitiveness of both china and south korea in the global battery material industry.
according to reports,construction for these two projects is planned to begin in the fourth quarter of this year,with production expected to commence in 2025.the official landing of the korean industrial base,as cngr's second international station after indonesia,signifies the significant progress made in cngr's"global development"strategy.this marks cngr's first successful industrial project landing in a developed country,providing a strong guarantee for cngr to further enhance its global competitiveness and consolidate its leading position in the industry.
in the face of the opportunities and challenges presented by the globalization of the battery material industry,cngr is fully capitalizing on the opportunities arising from the intersection of the third energy revolution and the fourth industrial revolution.the company is vigorously implementing its strategy of"technological diversification,global development,digital operation,and industrial ecology"to serve global customers and markets.cngr is continuously supporting the rapid development of the global advanced energy industry,while contributing to the realization of green,low-carbon,and sustainable development.