Posco Future M : P&O Chemical Completes Construction of South Korea's First ‘Pitch’ Plant for Anode Material Coating

P&O Chemical Completes Construction of South Korea's First 'Pitch' Plant for Anode Material Coating

2023.11.13

• (Photo Description) P&O Chemical, a joint venture between POSCO Future M and OCI, completed its pitch plant in Gongju on November 13th. The photo shows Kim Junhyung, President of POSCO Future M, delivering a commemorative speech.

- Annual production of 15,000 tons, sufficient for batteries in approximately 3 million electric vehicles
- Essential material for anode manufacturing... Reduces battery expansion and enhances charge/discharge speed
- POSCO Future M completes the entire value chain from anode raw materials to intermediate materials and final products

P&O Chemical, a joint venture between POSCO Future M and OCI Holdings in advanced chemical materials, has become the first in South Korea to produce a pitch for battery anode coating.

On November 13th, P&O Chemical held a completion ceremony for its pitch plant in the Tancheon Industrial Complex, Gongju City, Chungcheongnam-do. The event was attended by Kim Jun-hyung, President of POSCO Future M; Kim Yoo-shin, President of OCI; Yoo Byung-ok, Vice President of POSCO Holdings in charge of Eco-friendly Future Materials; Kim Jong-kook, President of P&O Chemical, and Choi Won-cheol, Mayor of Gongju City.

The newly completed plant is capable of producing 15,000 tons of high-softening-point pitch annually, enough to manufacture batteries for about 3 million electric vehicles.

Pitch, a byproduct of coal or petroleum refining processes like coal tar and residual oil, is processed to manufacture anode coating materials or used as raw electrode material to initiate heat in steel mills.

The pitch produced by P&O Chemical is a petroleum-based high-softening-point product, which, when coated on anodes, reduces battery expansion and increases the charge/discharge speed.

P&O Chemical, established in July 2020 as a joint venture by POSCO Future M and OCI Holdings to pursue advanced chemical material businesses like semiconductor etching using hydrogen peroxide, has been working towards the localization of pitch for anode coating since August 2021.

With the completion of this pitch plant, POSCO Future M has taken a significant step in completing the entire value chain from cathode materials to anode raw materials, intermediate materials, and final products. Along with the anode coating pitch, natural graphite will be sourced through POSCO Group's mining investments in Tanzania and Madagascar and synthetic graphite raw material needle coke will be directly produced and supplied by its subsidiary POSCO MC Materials using coal tar, a byproduct of the steel-making process.

Meanwhile, OCI is expanding its business into high-value advanced materials, from coal-based liquid pitch to high-softening-point petroleum pitch.

At the event, Kim Junhyung, President of POSCO Future M, stated, "Through close cooperation with OCI, we have successfully internalized anode coating pitch, further strengthening our business competitiveness. We will continue to contribute to enhancing the competitiveness of the domestic battery industry by supplying high-quality products based on a stable raw material supply chain and unparalleled technology."

Kim Yoo-shin, President of OCI, commented, "Following our success in high-purity hydrogen peroxide, the successful mass production of high-softening-point pitch marks another step forward for P&O Chemical as a core company in South Korea's advanced material sector. We will continue to develop P&O Chemical as a leading company in the future core material market through active collaboration between both companies."

• (Photo Description) P&O Chemical, a joint venture between POSCO Future M and OCI, completed its pitch plant in Gongju on November 13th. (From left in the photo) P&O Chemical Worker Representative Joo Moon-yong, Tancheon Industrial Complex Association Chairman Jo Don-young, SGC eTEC E&C President Ahn Chan-gyu, Gongju Mayor Choi Won-cheol, P&O Chemical President Kim Jong-kook, POSCO Future M President Kim Junhyung, OCI President Kim Yoo-shin, and POSCO Holdings Head of Eco-friendly Future Materials Yoo Byung-ok (Vice President).

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