POSCO FUTURE M

POSCO Chemical joins forces with OCI to invest 74.5 billion won to start a joint venture, P&O Chemical, and manufacture 15,000 tons of pitch, an essential material in the production of secondary cells, and boost competitiveness in advanced materials.

P&O Chemical was established in July 2020 as a joint venture between POSCO Chemical and OCI with 51:49 stakes, respectively. Financing for the project will be made in order depending on the equity ratio of the two companies.

The pitch that is to be made by P&O Chemical has a high softening point, as a carbon material made through heat-treatment of residue obtained by distilling petroleum. Pitch with a high softening point is used as a coating material for anode surfaces, in a bid to improve the charging and discharging efficiency of secondary batteries while simultaneously increasing battery life. It also curbs the expansion of anodes, making it an essential material for high-capacity batteries and next-generation silicon anodes.

The rapid growth in the battery market is pushing the worldwide demand for pitch, as it is a critical coating material for anodes. However, Korean companies are relying solely on imports because of the absence of a domestic pitch manufacturer. With the investment, POSCO Chemical will be supporting the domestic production of pitch. It will help to stabilize the supply and demand and even allow customized production, which will significantly improve the company’s competitiveness.

OCI, the only company capable of producing pitch in the country, is anticipated to boost profit from starting a new business by producing petroleum-based pitch with a high softening point, taking a step forward from the existing production of pitch based on steel by-products

P&O Chemical will expand its business into advanced chemical materials with high added-value, by producing 50,000 tons of super-pure hydrogen peroxide for the cleaning of semiconductors in 2022, and producing pitch for coating anodes, a main material for secondary cells in 2024.

A panoramic view of POSCO Chemical’s anode plant in Sejong

An anode production line at POSCO Chemical’s Sejong anode plant