POSCO Chem, OCI break ground on EV battery pitch plant

South Korea’s P&O Chemical is set to build the country’s first high-softening-point pitch manufacturing facilities with 15,000 tons of annual production capacity in Tancheon Industrial Complex, Gongju, South Chungcheong Province.

The company, a joint venture between Korea’s POSCO Chemical Co. and OCI, began construction on Sept. 21 with an aim to complete the facilities in July 2023. The JV will invest 96.3 billion won ($68.4 million) to build the plant, up 29.3% from the 74.5 billion won initially announced for the project last year.

Pitch is a carbon material made through heat treatment of the residue obtained by distilling petroleum or coal. The material can be used to coat anode surfaces to extend the lifespan of secondary batteries, as well as bind petroleum cock and butts in the aluminum smelting process.

P&O Chemical is planning to provide high-softening-point pitch for anode coating to POSCO Chemical first then enter the overseas market, where China and Germany are among the major players.

Korea is a leading producer of liquid pitch, but the country has imported 100% of its needed high-softening-point pitch. The material has been in strong demand with the rapid expansion of the global electric vehicle battery market.

OCI, the world’s largest liquid pitch maker with 530,000 tons of annual production capacity, is looking to expand its profits by manufacturing high-softening-point pitch. POSCO Chemical, the only graphite anode producer in Korea, is set to ensure a stable supply of high-quality pitch via the construction project.

Founded in July 2020, P&O Chemical produces hydrogen peroxide, which is widely used to bleach fabric, pulp and paper. Highly purified hydrogen peroxide is a key material in making semiconductors, displays and solar photovoltaics.

Write to Kyung-Min Kang at kkm1026@hankyung.com
Jihyun Kim edited this article.