POSCO and CNGR Begin Construction of Nickel Refinery and Precursor Factories

POSCO and CNGR of China have commenced construction of a nickel refinery and precursor factories at the Youngil-bay No.4 industrial complex. The projects are a joint venture between POSCO CNGR Nickel Solution and CNP New Material Technology, focusing on precursor material production.

The nickel refinery aims to produce 99% pure nickel for rechargeable batteries by processing 70% pure nickel matte from CNGR. It is expected to produce 50,000 tons of pure nickel annually, sufficient for around 1.2 million electric vehicles. The precursor factory plans to produce 110,000 tons of precursor material per year using high-purity nickel from the refinery.

The two companies are investing a total of 1.5 trillion won, with commercial production set to begin in 2026. This investment is part of POSCO's strategy to enhance self-supply capabilities and build a comprehensive value chain in the rechargeable battery material sector, supporting the growing EV market.