POSCO Chem, OCI to produce previously imported battery material in Korea

POSCO Chemical and OCI plan to produce in South Korea a key material for electric vehicle batteries, which has so far been imported.

POSCO Chemical said on Aug. 26 that P&O Chemical, its joint venture with OCI, a basic chemical producer, will make 15,000 tons of petroleum pitch, a material for anode coating, locally with an investment of 74.5 billion won ($63.5 million). It aims to start production in 2024.

Petroleum pitch is a material that prevents expansion of anode materials and is used to extend battery life.

Demand for the material has been rising alongside the booming global EV and battery markets. Battery makers in South Korea, however, have so far been importing petroleum pitch.

POSCO Chemical may also export petroleum pitch produced from the JV.

“We plan to seek selling it to global secondary battery materials makers since it significantly improves battery charging performance and lifespan compared to existing products,” said a company source.

Demand for petroleum pitch is expected to rise to 270,000 tons a year by 2030 as anode material consumption is forecast to grow to 2 million tons by then.

POSCO Chemical formed the JV in July 2020 with a 51% stake. OCI holds the remaining 49%.

Write to Jeong Min Nam at peux@hankyung.com
Jongwoo Cheon edited this article.