Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
POSCO Holdings starts secondary battery nickel business in Indonesia
Lee Kyung-sub, left, POSCO Holdings' head of LiB Materials Business, signs a memorandum of agreement for mutual cooperation in nickel production with Jiang Xinfang, CEO of Lygend Resources & Technology, in Jakarta, Indonesia, Thursday. Courtesy of POSCO Holdings
By Kim Hyun-bin
By Kim Hyun-bin
POSCO Holdings is starting a nickel business for secondary batteries in Indonesia. The company signed a memorandum of agreement (MOA) with China's Lygend Resources & Technology in Jakarta, Indonesia to cooperate in nickel production. With this MOA, POSCO Holdings will have a nickel supply network in Indonesia, the world's No. 1 nickel holder and producer, the company announced, Friday.
Indonesia is a major nickel hub for secondary batteries. Its total nickel reserves reach 21 million tons. Nickel is a key raw material that determines the performance of vehicle mileage by increasing the charging capacity of secondary batteries for electric vehicles (EVs). The growth of the EV market is sharply increasing demand for nickel for secondary batteries.
Lygend is a Chinese company that conducts business throughout the value chain, from nickel mining to smelting and trading. The company specializes in hydrometallurgical technology which extracts nickel ore by dissolving it in acid. In 2021, Indonesia's first nickel hydrometallurgical plant for secondary batteries was established and is in operation.
With this agreement, POSCO Holdings and Lygend plan to build a nickel mixed hydroxide precipitate (MHP) production plant with an annual capacity of 120,000 tons based on nickel content in Sulawesi, Indonesia. Construction of a production plant with a capacity of 60,000 tons based on nickel content will begin this year and production will begin in 2025.
The signing ceremony was attended by Lee Kyung-sub, head of POSCO Holdings' LiB Materials Business, and Jiang Xinfang, CEO of Lygend Resources & Technology.
"By cooperating with Lygend, a leading nickel hydrometallurgical company, we will be able to further strengthen the competitiveness of the nickel business, which is one of the pillars of the POSCO Group's secondary battery material business, by stably securing cost-competitive Indonesian nickel," Lee said.