EcoPro BM has approved the investment plan to build its new anode material factory, which is dedicated to supplying client SK Innovation for electric vehicle (EV) battery production, TheElec has confirmed Wednesday.
The company’s board approved the motion to move forward with its 80 billion won investment into building the new CAM5-N factory, people with direct knowledge of the matter said. It will built at Yeongilman 1 General Industrial Park.
It is the first factory solely dedicated for SK Innovation’s order.
CAM5-N will produce anode materials with over 80% nickel, or high-nickel, and be supplied to SK, branded as CSG.
SK Innovation will likely use the supply from the factory to boost operations at its EV battery factories in China, Hungary and the US, which are all planned to be expanded. SK Innovation is aiming to have a total annual output of 70GWh by 2023.
The investment for CAM5-N was initially set to begin in the first quarter but was delayed from the COVID-19 pandemic. Partnered companies EcoPro GEM, EcoPro Innovation and EcoPro CnG that will handle the materials, production and recycling, respectively, also needed time to secure the funds.
CAM5-N will be built at 29,752 meter-square of land and produce 26,000 metric tonnes of anode material per year when completed. It will be a replica of CAM-5 and have three lines.
Production capacity is subject to change depending on how much anode materials SK Innovation need, however.
EcoPro BM signed an anode material supply deal worth 2.74 trillion won with SK Innovation in February. The deal will last until December 31, 2023.
The three-year deal is larger than EcoPro BM’s 2018 annual revenue of 589.1 billion won.
EcoPro BM operates its anode material factories at Pohang and Ochang. Its factories at Ochang, from CAM1 to CAM4-N, produced small amount for diverse products. The factories had a combined capacity of 29,000 metric tonnes of anode materials per year. Its factory at Pohang, CAM5, currently has a capacity of 26,000 metric tonnes per year.