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POSCO Future M Advances Nickel Production in the Philippines Leveraging Eco-friendly Refinement Technologies
2023.08.18
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(Photo Caption) POSCO Future M and NPSI signed an MOA for a joint nickel venture in the Philippines. President Kim Jun-hyung of POSCO Future M (left) and Chairman Michael Chen of the MC Group (right).
- Utilization of new refining technology for eco-friendly Mixed Hydroxide Precipitate (MHP) nickel production boosts profitability and strengthens ESG competitiveness
- Meeting the criteria for "Qualifying Critical Minerals" under the IRA can facilitate further expansion in the North American market
Utilizing groundbreaking eco-friendly refining technology, POSCO Future M is poised to commence nickel production, a crucial component for battery cathodes, in the Philippines.
On the 17th, POSCO Future M signed a Memorandum of Agreement (MOA) with Nickel Prime Solutions Inc (NPSI), a nickel subsidiary of the MICHAEL CHEN GROUP, a significant player in the Philippines in mining development and renewable energy. The signing event, held at the POSCO Center, was attended by President Kim Jun-hyung of POSCO Future M, Energy Material Business Head Jung Dae-heon, and MC Group Chairman Michael Chen.
According to the agreement, POSCO Future M and NPSI will establish a joint venture (JV) in the Philippines for nickel operations and push for the construction of a Mixed Hydroxide Precipitate (MHP) production facility using a state-of-the-art refining technology jointly developed by POSCO Future M and Research Institute of Industrial Science and Technology (RIST). This marks POSCO Future M's inaugural direct overseas venture into raw material production for battery components.
*Mixed Hydroxide Precipitate (MHP) is an intermediate product obtained after removing impurities from nickel ore (approximately 1% nickel content) and is utilized as a raw material for high-purity nickel sulfate production for cathodes.
Nickel, essential for battery cathodes, enhances battery storage capacity when used in higher proportions. As the electric vehicle (EV) range is crucial, its demand has surged in line with the global expansion of the electric vehicle market.
Through this collaboration with NPSI, POSCO Future M anticipates establishing a production infrastructure in the Philippines, the second-largest global nickel producer, ensuring a stable supply chain for cathode materials and bolstering profitability.
※ According to the US Geological Survey (USGS), as of 2022, global nickel production figures are: Indonesia at 1.6 million tons, the Philippines at 330,000 tons, Russia at 220,000 tons, followed by New Caledonia at 190,000 tons.
The innovative refining technology POSCO Future M will employ in this joint venture boasts a streamlined process enhancing cost competitiveness. Furthermore, it is an eco-friendly technology that reduces carbon emissions by over 50%, enhancing its competitiveness in the ESG dimension.
Producing cathodes in Korea using the MHP nickel from the Philippines will meet the "Qualifying Critical Minerals" standards set by the U.S. Inflation Reduction Act (IRA), paving the way for expanded supply to the North American market.
With a vision to achieve an annual cathode production capacity of 1 million tons by 2030, POSCO Future M has diligently worked to secure a stable supply chain for nickel, besides lithium, through strategic group-level investments. The upcoming joint venture factory will procure nickel from the MC Group's mine in the Palawan region of the Philippines, which possesses a deposit of approximately 40 million tons of ore. The MC Group plans to acquire roughly 200 million tons of nickel ore by 2026 through additional investments and acquisitions in local mines, further cementing its raw material collaboration with POSCO Future M.
President Kim Jun-hyung of POSCO Future M stated, "The nickel project through our partnership with NPSI is a pivotal milestone in strengthening our cathode business profitability and establishing a green supply chain."
Chairman Michael Chen of NPSI remarked, "Bolstered by our MOA with global battery material enterprise POSCO Future M, we plan to accelerate our joint nickel venture in the Philippines and further amplify our synergy."
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(Photo Caption) President Kim Jun-hyung of POSCO Future M (left) and Chairman Michael Chen of the MC Group (right) are captured during the signing of the MOA for the joint nickel venture in the Philippines.