Participated in SK On, EcoPro Materials, and Chinese GEM
Operation of the 1st secondary battery plant in 2025 and the 2nd plant in 2027
All products are exported to cathode materials factories in North America
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South Korea’s SK On and Ecopro Materials and China’s Georin May (GEM) will establish a Korean-Chinese joint venture, GM Korea New Energy Materials, and build a KRW 1.21 trillion secondary battery precursor production plant at the Saemangeum National Complex. This is the largest foreign company ever to invest in Saemangeum.
Previously, in November last year, SK On, one of the three domestic battery manufacturers, Ecopro, a domestic secondary battery material company, and GEM, a Chinese precursor producer, signed a business agreement to establish a nickel intermediate material production corporation in Indonesia. SK On Ecopro GEM plans to bring nickel intermediate material (MHP) secured in Indonesia to Korea to produce nickel sulfate or precursors.
It is known that the three companies are considering a plan to produce nickel sulfate and precursors in Korea, a country that has signed a Free Trade Agreement (FTA) with the United States, and supply them to electric vehicle battery factories in the United States. in order. to meet the requirements for electric vehicle subsidies under the US Inflation Reduction Act (IRA). This investment in Saemangeum’s precursor production plant appears to be part of such collaboration in the battery raw material sector.
In this regard, Saemangeum Development Authority, Jeonbuk Province, Gunsan City, and Korea Rural Community Corporation will sign an investment agreement with GEM Korea New Energy Materials (hereafter referred to as GEM Korea) at the Ramada Hotel in Gunsan on the 24th to build a secondary battery precursor production plant. Precursor is a key raw material for secondary battery cathode materials, and refers to a compound that is a mixture of raw materials such as nickel, cobalt, and manganese.
GM Korea’s total investment is 1.21 trillion won. It is a structure where SK On and Ecopro Materials acquire 51% of the funds and GEM 49%.
GGM Korea plans to start construction of a precursor production plant with an annual production capacity of 100,000 tons on a 330,000㎡ site in the Saemangeum National Industrial Complex in June this year. Work 1 is due to start operating in 2025 and Work 2 in 2027. It is estimated that around 1100 people are employed.
All products produced in Saemangeum are exported to North American cathode material factories of domestic investors.
Meanwhile, GGM Korea is said to have rated Saemangeum highly for its business expansion potential, such as subsidy benefits and vast land. In addition, logistics infrastructure facilities such as Saemangeum tri-port (airport, port and railway), which is gradually becoming visible, also played an important role in the investment decision.
Jangmyo, CEO of GGM Korea, said, “For the smooth promotion of the Saemangeum project, we request active cooperation from the Saemangeum Development Agency and other related organizations. “I will do my best,” he said.
Kim Kyu-hyun, head of the Saemangeum Development Agency, said, “We expect that the Saemangeum project, promoted by establishing an international partnership between SK On, Ecopromaterials, and GEM, will become a blue chip in the global secondary battery market. .” I will spare no support,” he said.
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