Posco Chemical said on Friday that it has decided to raise 1 trillion through the sell of shares. The board approved the motion on the same day.
The shares will be allocated on December 9 and listed on February 3, 2021.
Parent company Posco, which owns 61.3% of shares of Posco Chemical, and other existing shareholders will take part.
Posco will invest 540 billion won via new stock subscription of the share it currently owns.
Out of the 1 trillion won, 690 billion won will be spend in expanding facilities, including Posco Chemical’s Gwangyang plant. Around 160 billion won will spend in securing raw materials such as graphite and lithium.
Around 150 billion won will be spend on building its cathode factory in Europe to meet rising demand from electric cars there.
Posco Chemical is aiming to expand its cathode material production rate from its current 40,000 metric tonnes to 400,000 metric tonnes by 2023. Anode material production will increase from 44,000 metric tonnes to 260,000 metric tonnes in the same time period.
Cathode business will be produced in South Korea, China and Europe, where its customers are.
Posco Chemical said it will also diversify its anode material from its current ofucs on natural graphite to synthetic graphite and silicon. The company vowed to increase its profitability by procuring raw materials on its own more going forward.
The company also announced that it would invest 275.8 billion won to add 30,000 metric tonnes capacity to its cathode plant in Gwangyang. It is the plant’s fourth expansion. It is done to meet NCMA demand. When completed, Posco Chemical will secure annual cathode production of 100,000 metric tonnes in 2023.