POSCO Completed Zhejiang Cathode Factory

POSCO has completed the construction of its first overseas battery cathode factory, signifying its entry into the global battery market. The company held a ceremony to complete the construction of a plant in China's Zhejiang province, which can produce 5,000 tons of cathodes per year.

POSCO's board approved a plan to set up a joint venture plant with Huayou Cobalt in January last year and began construction in September. POSCO owns 60% of the shares in this venture called Zhejiang POSCO-Huayou ESM, and the rest is held by Huayou Cobalt. Commercial production at the plant will begin in late 2019, one year ahead of the company's original end-2020 plan as ZPHE secured a stable supply of raw materials from Huayou Cobalt.

Senior Executive Vice President Oh Gyu-seok said during the ceremony that “ZPHE is the first overseas POSCO battery component factory, which represents the company's plan to expand into new growth sectors. We will strengthen our ties with Huayou Cobalt in the future to ensure technology leadership and competitiveness in the global market. We also expect a local marketing advantage as the plant is adjacent to the Chinese manufacturing bases of global battery manufacturers. ”