POSCO Holdings is liquidating a joint venture established with China's CNGR to produce nickel, a raw material for electric vehicle batteries.
POSCO Holdings announced that its subsidiary, POSCO CNGR Nickel Solution, resolved to dissolve at a general shareholders meeting on the 11th and is proceeding with liquidation procedures through the appointment of a liquidator. Once the liquidation process is completed, POSCO CNGR Nickel Solution is expected to withdraw from POSCO Holdings.
POSCO CNGR Nickel Solution was established last year as part of the POSCO Group's efforts to build a supply chain for electric vehicle materials in collaboration with China's CNGR. POSCO Holdings and CNGR invested in a 6:4 equity ratio to establish the company. In May of last year, construction began on a nickel production plant in the Pohang Yeongilman 4 Industrial Complex, with a target completion date of 2026. The plan was to produce 50,000 tons of high-purity nickel annually to supply to POSCO FUTURE M and others. It is reported that construction work has not yet started after the commencement.
The POSCO Group is reportedly restructuring its business in response to a slowdown in demand for electric vehicle batteries due to a weak electric vehicle market. Although the group has decided to halt nickel production domestically, it is known to continue producing precursors. Last year, POSCO FUTURE M established the precursor production company C&P Material Technology by investing in an 2:8 equity ratio with CNGR.