POSCO has completed the construction of its first overseas plant that produces cathodes for rechargeable batteries, signaling its entry into the global battery market. The company held a completion ceremony for the plant in Zhejiang Province, China, which can manufacture 5,000 tonsne of cathodes a year. The POSCO board approved a plan to set up a joint venture to run the plant with Huayou Cobalt in January last year, and began construction in September. POSCO has a 60% stake in the venture, named Zhejiang POSCO-Huayou ESM with the rest being held by Huayou Cobalt. Commercial production at the plant will begin at the end of 2019, a year earlier than the company’s initial plan of late 2020, as ZPHE has secured stable raw material supplies from Huayou Cobalt.
Senior Executive Vice President Mr Oh Gyu-seok said during the ceremony said that “ZPHE is POSCO’s first overseas battery parts plant, which represents the firm’s plan to expand into new growth sectors. We will strengthen our ties with Huayou Cobalt in the future to secure the leadership in technology and competitiveness in the global market. We also expect a local marketing advantage, as the plant is adjacent to global rechargeable battery makers’ Chinese manufacturing bases.” (Ukrainian metal)