Posco Chemical said on Thursday that it plans to build a new cathode factory at Pohang with an annual capacity of 60,000 metric tonnes per year.
The company will spend 600 billion won to build the factory on 120,000 meter-square of land starting in 2022.
Once the new factory is complete, Posco Chemical will have an annual capacity of 160,000 metric tonnes for cathode production in South Korea.
This is enough to power around 1.8 million units of 60kWh electric vehicles, the chemical firm said.
The company is also aiming to build a new cathode factory with an annual production capacity of 110,000 metric tonnes abroad in the US, Europe or China.
It is aiming for a total global capacity of 270,000 metric tonnes by 2025.