SEOUL, Feb. 23 (Yonhap) -- POSCO Chemical Co., an affiliate of South Korea's steel giant POSCO Group, said Tuesday it will invest 275.8 billion won (US$248 million) to expand its production capacity of cathodes, a key component for electric vehicle (EV) batteries.
POSCO Chemical said the plant in the southern city of Gwangyang will boost its annual production capacity of cathodes to 100,000 tons by 2023, which is enough to manufacture about 1.1 million electric vehicles equipped with 60 kWh battery packs.
Currently, POSCO Chemical has an annual cathode production capacity of 30,000 tons and 10,000 tons at its plants in Gwangyang and the southeastern industrial city of Gumi, respectively.
The latest move is meant to meet growing demand for cathodes.
POSCO Chemical also said it plans to set up plants in China and Europe to timely supply cathodes to EV battery makers.
The EV battery market has been on a roll as automakers around the world race to go electric and eco-friendly due to tightened regulations on greenhouse gas emissions, which scientists say are to blame for global warming.
(News Focus) No parcel day: Why S. Korean delivery workers are taking a day off on Aug. 14
Advertising controversy grips S. Korean mukbang YouTubers
Seoul's last-ditch home supply plan still in doubt over its viability
Korean foodmakers ramp up overseas push amid COVID-19 pandemic
Bumpy road lies ahead for Samsung, even after heir avoids detention