Posted on 21 Aug 2023
Posco Future M, the new energy branch of South Korean giant Posco, said Friday it plans to develop nickel production in the Philippines with Nickel Prime Solutions Inc (NPSI), Kallanish reports.
Under a memorandum of agreement, the parties intend to form a joint venture to produce mixed hydroxide precipitate (MHP) products, which will be used as raw materials for the production of high-purity nickel sulphate for cathode materials.
The JV will adopt the new eco-friendly refinery technology developed by Posco Future M and Research Institute of Industrial Science and Technology (RIST). This new technology is said to be less costly, and more environmentally friendly than traditional processing as it can reduce carbon emissions by more than 50%.
Through the partnership with NPSI, a nickel-specialised subsidiary of Michael Chen Group, Posco expects to establish a production system in the second-largest nickel producing country in the world, securing a stable cathode material supply chain and increasing its business profitability.
Posco Future M targets an annual production capacity of 1 million tonnes of cathode materials by 2030.
MC Group will help supply nickel resources as it has a mine with about 40m t of ore in Palawan, Philippines. The company plans to secure about 200m t of nickel ore by 2026 through additional equity investment and acquisition in local mines as it continues cooperation with Posco Future M in the field of raw materials.
According to Posco, this is Posco Future M’s first time directly producing battery raw materials outside of South Korea. Posco Future M also wants to use this partnership to meet the requirements set by the US Inflation Reduction Act for its expansion in the North American market.
Source:Kallanish
