To expand its business into secondary battery materials, POSCO Holdings Inc. has announced a $1.2 billion (1.5 trillion won) investment in a joint venture with CNGR Advanced Materials Company, a Chinese company. The collaboration aims to construct nickel and battery precursor production facilities in Pohang, North Gyeongsang Province. POSCO Holdings and CNGR will establish a nickel refining facility, while POSCO Future M and CNGR will create a battery precursor production plant. The joint production capacities of these firms will produce 50,000 tons of nickel and 110,000 tons of battery precursors annually for an estimated 1.2 million electric vehicles.

The joint ventures are expected to ensure the stable sourcing of critical secondary battery components and meet U.S. battery production requirements for tax credits under the Inflation Reduction Act. The plants’ construction is set to commence in the last quarter of this year, with commercial operations expected to begin in 2026.