Posco will invest 300 billion won ($260.9 million) over the next three years to expand and enhance production of anodes for rechargeable batteries to meet increasing applications.

Kwon Oh-joon, chief executive officer of the world’s fourth largest steelmaker, said the company will spend additional 300 billion won until 2020 in anodes, the primary cell in rechargeable batteries, during a visit to Posco ESM’s plant in Gumi, North Gyeongsang Province on February 10, according to the company on Sunday.

Posco ESM is a manufacturer of anode materials that are used to make batteries powering electric vehicles, laptops and mobile phones. The company has been a supplier of general anode materials, but also has started supplying Posco Gradient-Nickel Cobalt Manganese (PG-NCM), high-capacity electrode for batteries to power low-speed electric cars, to LG Chem Ltd. since last month after commercialization. Posco raised its stake in Posco ESM to 75.32 percent through purchase of new issues last month to ramp up its secondary battery business.

Kwon earning his second term in the steelmaking group last month has been focused to find new growth engines in non-steel sector.

The company began the country’s first commercial production of lithium carbonate, a base material for lithium-ion batteries, at its lithium extraction plant (PosLX) in Gwangyang, South Jeolla Province. The facility has a capacity of producing 2,500 tons of lithium carbonate a year.

Posco devoted seven years in developing lithium extraction technology. It will supply the material to local battery makers such as LG Chem, Samsung SDI and Posco ESM that thus far had relied entirely on imports and help them save production cost.

“We are looking into other material sector such as magnesium and nickel wet smelting for other growth engines,” said an official from Posco.

By Moon Ji-woong

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