KRW 300 Billion (USD 223 Million) Investment: A Silicon Anode Materials Plant Producing 5,000 Tons Per Year by 2025
Pohang City Cements Role as K-Battery Hub: Solidifies Reputation as the “Best for Secondary Battery Specialized Complex”

 

Gyeongsangbuk-do and Pohang City take significant steps to strengthen their position as Korean battery manufacturing hubs.
On April 4, 2023, Gyeongsangbuk-do and Pohang City signed a large-scale investment agreement with POSCO Silicon Solution worth KRW 300 billion (USD 223 million) in the conference room at Pohang City Hall. Over 30 officials from government agencies, industries, schools, and research institutes attended the event, including prominent figures such as Lee Dal-hee, Deputy Governor of Economic Affairs of Gyeongsangbuk-do; Kim Nam-il, Deputy Mayor of Pohang; Yoo Byung-ok, Vice President of POSCO Holdings; Lee Jae-woo, CEO of POSCO Silicon Solution; Park Yong-sun, Vice Chairman of the Gyeongbuk Provincial Council; Baek In-gyu, Chairman of Pohang City Council; Kim Sang-woo, Director of Industry-Academic Cooperation at POSTECH; Kim Jong-rok, Executive Vice President of Handong University; Kim Hyung-rak, President of Pohang University; Kang Heung-sik, Director of Accelerator Research Institute; and Lee Jeom-sik, Director of Pohang Techno Park.
POSCO Silicon Solution, a subsidiary of POSCO Holdings, intends to invest KRW 300 billion (USD 223 million) by 2025 in the Yeongil Bay Industrial Complex in order to establish a facility capable of producing 5,000 tons of silicon anode materials annually. This investment is anticipated to generate 170 new job opportunities.
Silicon anode materials are emerging as the anode material of the future; boasting an energy density approximately 10 times higher than graphite anode materials currently utilized in lithium-ion batteries. These materials not only reduce charging times for electric vehicles but also enhance their driving range.
The market share of silicon anode materials was only 1.2%, equivalent to 6,000 tons in 2020, but it is anticipated to rise sharply to approximately 320,000 tons by 2027, making up 10.1% of the entire anode materials market. 
The annual growth rate for silicon-based anode materials from 2020 to 2027 is projected to be 76.6%, which is notably higher than other anode active materials.
POSCO Group is establishing the world's first complete value chain for secondary battery materials. In July last year, the company acquired Tera Technos, a developer of silicon anode materials, and renamed it POSCO Silicon Solution.
POSCO Silicon Solution will begin constructing the first phase of its silicon anode materials production facility in Yeongil Bay Industrial Complex in June, using the investment provided by POSCO Holdings. The company aims to commence the production and sale of silicon anode materials in earnest starting next year.
Furthermore, POSCO Silicon Solution has outlined its investment plans for step-by-step expansion, including the procurement of production facilities capable of producing approximately 5,000 tons of silicon anode material annually by 2025. The company also aims to establish a production system that can manufacture roughly 25,000 tons of silicon anode material each year by 2030.

 

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Lee Dal-hee, the deputy governor of economic affairs in Gyeongsangbuk-do, expressed gratitude to Lee Jae-woo, CEO of POSCO Silicon Solution, for making a decision to invest KRW 300 billion (USD 223 million) during difficult times. She made her objections clear, saying “In the era of the fourth industrial revolution, Pohang, also known as the Iron City, is rapidly transforming into a city focused on the manufacture of batteries. With this investment in silicon anode material, Pohang is well-positioned to lead the secondary battery materials market and pave the way for next-generation batteries. Pohang will also concentrate its efforts on developing a specific secondary battery complex”.

PolyNews reporter Kwon Taek-seok on April 4, 2023