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Gyeongbuk-do signed an MOU with EcoPro Innovation 상세내용
- Gyeongbuk-do signed an MOU with EcoPro Innovation
- 등록일2020-04-14 13:58:53
Gyeongbuk Province announced that it signed an investment MOU with Pohang City and EcoPro Innovation at Pohang City Hall on the 6th as the first step to revive the economy since the COVID 19 outbreak. EcoPro Innovation is a lithium hydroxide manufacturer for cathode materials used in secondary cells.
Approximately 20 people attended the event, including Cheolwoo Lee (Gyeongbuk Province Governor), Gangdeok Lee (Mayor of Pohang City), Gyeongsik Jang (Chairman of the city assembly), Dongchae Lee (Chairman of EcoPro), Yoontae Lee (CEO of EcoPro), provincial members, and city councilors.
er the MOU, EcoPro will invest KRW 73 billion over two years until 2021 in Pohang’s Yeongil Bay General Industrial Complex #4 to manufacture ultra-pure lithium hydroxide for cathode materials used in the secondary cell. Moreover, EcoPro will build production lines on 25,860 m2 of land and 6,752 m2 of buildings and create 100 new jobs.
The secondary cell industry is a high value-added promising industry that is expected to proliferate in the future because of the expansion of markets for electric vehicles, energy storage devices (ESS), and high-tech electronic devices incorporating IT technology.
An official from EcoPro said, “The demand for high-purity lithium hydroxide, a key raw material of secondary cell cathode materials, is expected to increase sharply, so we decided to make the investment to stabilize the supply chain through the prior occupation of the market and the localization of raw materials in the future.”
Lithium carbonate, a raw material of cathode materials, which relies heavily on imports, is used only in electric vehicles. However, lithium hydroxide has more output than conventional lithium carbonate, making it reliable and versatile in various applications, including electric vehicles, ESS, and high-tech electronic devices. As such, EcoPro aims to meet 30% of the country’s total demand for lithium hydroxide.
With the investment, a system will be built to mass-produce lithium hydroxide in Korea, which is free of foreign dependence. As a result, national competitiveness in the secondary battery industry can be enhanced by the localization of the entire process, from secondary battery materials to assembly. In addition, local companies producing cathode materials, a downstream industry of lithium hydroxide, can secure price competitiveness by avoiding international freight as well as a stable supply network of the raw material.
Gyeongsangbuk-do is rapidly emerging as a mecca for the secondary cell industry after attracting two middle-standing enterprises (EcoPro BM in Pohang and POSCO Chemical in Pohang) that produce core materials for secondary cells (anode and cathode materials) and a large firm (LG Chem in Gumi) from 2018 to 2019.
On January 9 this year, GS E&C signed an MOU to invest a total of KRW 100 billion over the next three years in the Yeongil Bay General Industrial Complex #4, a regulation-free zone for battery recycling. As a result, Pohang is expected to establish itself as a leading city in the next-generation battery industry.
Pohang Mayor Gangdeok Lee said, “We hope that an investment in a high value-added industry, such as the secondary cell, will be the priming water amid the severe economic recession because of the COVID 19 in attracting more businesses to Pohang, boosting the local economy.”
“Materials and parts companies that supply to the secondary cell industry have high added-value and can lead the Fourth Industrial Revolution. As such, we will expand the for related industries by intensively attracting these sectors to recover the local economy quickly, which has been heavily affected by the unprecedented COVID 19 crisis,” said Cheolwoo Lee, Governor of Gyeongbuk Province.