South Korean steelmaker, POSCO plans to start production of high purity nickel at its ferronickel refining factory SNNC in Gwangyang with a production capacity of 20,000t (18,144mt) per annum by 2023.
The material will be produced at its factory in Dongho Bay close to SNNC and will be used to produce more than 500,000 EVs, the company said in a statement. POSCO plans to use its iron removal process for the production of high purity nickel and will invest $195.4bn towards this initiative, the company noted.
The steelmaker cited Wood Mackenzie data that estimates three million EVs were produced globally last year and that the market is expected to grow to 32 million by 2030. This will increase the demand for high-capacity batteries by an average of 23pc annually, which will lift demand for high purity nickel used in battery cathodes.
The company also plans to accomplish annual sales of $19.5bn and capture 20pc of the global market share in the secondary battery sector by 2030 by supplying 100,000t of nickel, and 220,000t of lithium globally.