POSCO Future M Signs MOA with NPSI for Nickel Business Collaboration
POSCO Future M, a leading battery materials producer, has entered into a memorandum of agreement (MOA) with NPSI (Nickel Prime Solutions Inc), a subsidiary of the MC Group, to establish a joint venture for nickel business in the Philippines. The collaboration aims to enhance the production of nickel, a crucial raw material for cathode materials in batteries, using environmentally friendly smelting technology.
The MOA signing ceremony, held at the POSCO Center, was attended by Kim Joon-hyung, President of POSCO Future M, Jeong Dae-heon, Energy Materials Business Manager, and Michael Chen, Chairman of the MC Group.
Under the agreement, POSCO Future M and NPSI will establish a joint venture and utilize innovative smelting technology jointly developed by POSCO Future M and RIST (Pohang Institute of Industrial Science and Technology) to produce nickel alloy (MHP). This marks the first time that POSCO Future M will directly produce raw materials for battery materials overseas.
The joint venture will focus on the production of a nickel mixture known as Mixed Hydroxide Precipitate (MHP). MHP is an intermediate material obtained through the removal of impurities from nickel ore and serves as a vital component in the production of high-purity nickel sulphate for cathode materials.
Nickel plays a critical role in increasing the storage capacity of batteries, particularly for electric vehicles. As the global electric vehicle market expands, the demand for nickel is expected to rise significantly. By establishing a production system in the Philippines, the world’s second-largest nickel producer, through this collaboration with NPSI, POSCO Future M aims to ensure a stable supply chain of cathode materials and bolster business profitability.
According to the United States Geological Survey (USGS), global nickel production in 2022 was dominated by Indonesia, followed by the Philippines, Russia, and New Caledonia.
The new smelting technology employed by POSCO Future M offers cost competitiveness and reduces the carbon emissions by over 50% compared to conventional smelting technologies. Additionally, if the cathode material is manufactured in Korea using nickel alloy (MHP) produced in the Philippines, it will align with the “Eligible Critical Minerals” requirements set by the US Inflation Reduction Act (IRA) and facilitate exports to North America.
POSCO Future M, with a goal of achieving an annual production capacity of 1 million tons of cathode materials by 2030, is actively working towards securing a stable supply chain for both nickel and lithium. The joint venture will receive nickel supply from MC Group, a company with a mining operation in Palawan, Philippines, holding approximately 40 million tons of ore. MC Group plans to further strengthen its raw material collaboration with POSCO Future M by acquiring local mines and securing around 200 million tons of nickel ore by 2026.
“The nickel joint venture with NPSI marks a significant milestone in boosting the profitability of our cathode material business and establishing an environmentally friendly supply chain,” said Kim Joon-hyung, President of POSCO Future M.
Michael Chen, Chairman of NPSI, expressed his enthusiasm for the collaboration, stating, “Based on the MOA with POSCO Future M, a global battery material company, we plan to accelerate the nickel joint venture in the Philippines and further strengthen synergy.”
As the partnership between POSCO Future M and NPSI takes shape, the future of sustainable battery materials production appears promising, with a focus on reducing environmental impact and ensuring a steady supply chain of critical minerals.
MOA signed with NPSI for nickel business cooperation
Cathode material business Profitability and improving ESG competitiveness
△ POSCO Future M President Kim Joon-hyung (left), MC Group Chairman Michael Chen (right)
POSCO Future M begins production of nickel, a key raw material for cathode materials for batteries, in the Philippines using new environmentally friendly smelting technology.
On the 17th, POSCO Future M signed a memorandum of agreement (MOA) for a joint venture with NPSI (Nickel Prime Solutions Inc), a nickel-specialist subsidiary of MC Group (MICHAEL CHEN GROUP), which focuses on mining development and renewable energy. business in the Philippines.
The agreement ceremony held at the POSCO Center was attended by M POSCO Future President Kim Joon-hyung, Energy Materials Business Manager Jeong Dae-heon, and MC Group Chairman Michael Chen.
According to the agreement, POSCO Future M and NPSI set up a joint venture (JV) for the nickel business in the Philippines, and use new smelting technology that is jointly developed by POSCO Future M and RIST (Institute Pohang Industrial Science and Technology) to produce nickel alloy (MHP). ) Promote the construction of production plants. This is the first time POSCO Future M has directly produced raw materials for battery materials overseas.
Nickel mixture (MHP: Mixed Hydroxide Precipitate) is an intermediate material produced by the impurity removal process from nickel ore (nickel content of about 1%), and is used as a raw material for the production of high purity nickel sulphate for cathode materials. .
Nickel is a key raw material for cathode materials, and the higher the proportion of nickel used, the higher the storage capacity of the battery. It is an important mineral to increase the mileage of electric vehicles, and its demand is also increasing significantly as the global electric vehicle market expands.
Through this agreement with NPSI, POSCO Future M expects to establish a production system in the Philippines, the second largest nickel producer in the world, thereby ensuring a stable cathode material supply chain and increasing business profitability.
According to the United States Geological Survey (USGS), global nickel production from 2022 was △Indonesia 1.6 million tons △Philippines 330,000 tons △Russia 220,000 tons △ New Caledonia 190,000 tons in order.
The new smelting technology that POSCO Future M will use for this joint venture is cost-competitive as the process is shortened compared to the smelting technology generally used at this time. meal, and it is an environmentally friendly technology that reduces carbon emissions by more than 50%. It is also evaluated to be competitive.
In addition, if the cathode material is produced in Korea with nickel alloy (MHP) produced in the Philippines, it can meet the ‘Eligible Critical Minerals’ requirements set by the US Inflation Reduction Act (IRA), by supplied to North America. It is hoped that this will also help with expansion.
POSCO Future M, which plans to have an annual production capacity of 1 million tons of cathode materials by 2030, has been making continuous efforts to ensure a stable supply chain for nickel as well as lithium, which has built a value chain through level group. investment among key cathode materials. The joint plant will also receive nickel from MC Group, which has a mine with approximately 40 million tons of ore in Palawan, Philippines. MC Group plans to secure approximately 200 million tons of nickel ore by 2026 through additional equity investment and acquisition in local mines, and continue to cooperate with POSCO Future M in the field of raw materials.
“The nickel business through a joint venture with NPSI will be an important starting point for strengthening the profitability of the cathode material business and establishing an environmentally friendly raw material supply chain,” said Future M POSCO President Kim Joon-hyung.
“Based on the MOA with POSCO Future M, a global battery material company, we plan to accelerate the nickel joint venture in the Philippines and further strengthen synergy,” said Michael Chen, chairman of NPSI.
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