{"id":2201438,"date":"2023-06-22T08:00:32","date_gmt":"2023-06-21T23:00:32","guid":{"rendered":"https:\/\/koreapro.org\/?p=2201438"},"modified":"2023-06-21T18:35:15","modified_gmt":"2023-06-21T09:35:15","slug":"posco-announces-joint-venture-with-chinese-company-cngr-for-battery-production","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/06\/posco-announces-joint-venture-with-chinese-company-cngr-for-battery-production\/","title":{"rendered":"POSCO announces joint venture with Chinese company CNGR for battery production"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">To expand its business into secondary battery materials, POSCO Holdings Inc. has <\/span><a href=\"https:\/\/www.yna.co.kr\/view\/AKR20230621123000003?section=economy\/all\"><span style=\"font-weight: 400;\">announced<\/span><\/a><span style=\"font-weight: 400;\"> 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.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">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\u2019 construction is set to commence in the last quarter of this year, with commercial operations expected to begin in 2026.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Dear readers,<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">At KOREA PRO, we are committed to providing engaging and informative content tailored to our discerning audience. Recognizing the significance of your perspectives in enriching our offerings, we cordially extend an invitation for your participation in a brief <\/span><\/i><a href=\"https:\/\/docs.google.com\/forms\/d\/e\/1FAIpQLScvzlZJxcMly2_rwvE0IkCy2sS_Vd9F_t7F0dJeUzDW4ropMw\/viewform\"><i><span style=\"font-weight: 400;\">5-minute survey<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">. This opportunity allows us to capture your invaluable feedback and insights, which we greatly appreciate and consider integral to our ongoing commitment to service excellence.<\/span><\/i><\/p>\n<p><b>Why It Matters<\/b><\/p>\n<p><span style=\"font-weight: 400;\">POSCO Holdings\u2019 announcement will likely help the company to cut down on import costs in the long term, as battery precursors, according to the company, account for 65 to 70% of the cost of cathodes, which are a critical secondary battery material that determines the power and range of EV batteries. By establishing their precursor production plants in Pohang, POSCO could decrease their reliance on imports and reduce their production costs. On the other hand, CNGR will likely be able to use its partnership with POSCO to gain a foothold in the U.S. market, which Chinese firms have found challenging to enter since the passage of the U.S. Inflation Reduction Act.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The investment and joint venture are significant for South Korea, which imported <\/span><a href=\"https:\/\/tradingeconomics.com\/south-korea\/imports\/nickel\"><span style=\"font-weight: 400;\">$1.45 billion<\/span><\/a><span style=\"font-weight: 400;\"> worth of nickel in 2021, according to the United Nations COMTRADE database on international trade.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Further, this move by POSCO and CNGR likely aligns with the U.S. Inflation Reduction Act requirements. The act provides subsidies and tax credits for battery manufacturers that do not depend on \u201cforeign entities of concern\u201d for their minerals and components. Although South Korean businesses initially assumed the act would promote their operations over those of Chinese manufacturers, Ford Motor Company\u2019s <\/span><a href=\"https:\/\/koreajoongangdaily.joins.com\/2023\/02\/15\/business\/industry\/korea-battery-ford\/20230215170824250.html\"><span style=\"font-weight: 400;\">decision<\/span><\/a><span style=\"font-weight: 400;\"> to license lithium iron phosphate technology from China\u2019s Contemporary Amperex Technology Company Limited (CATL) has created new competitive pressures. POSCO can improve its competitiveness by securing battery precursors from a Chinese firm.<\/span><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>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 [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2201439,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[30],"tags":[24],"class_list":["post-2201438","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-briefings","tag-business-economy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>POSCO announces joint venture with Chinese company CNGR for battery production - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2023\/06\/posco-announces-joint-venture-with-chinese-company-cngr-for-battery-production\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"POSCO announces joint venture with Chinese company CNGR for battery production - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"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. 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