Battery cathode maker EcoProBM has signed on with SK Innovation to supply up to KRW 2.7 trillion worth of cathode to South Korean battery maker SK Innovation, according to EcoProBM in a regulatory filing on Feb. 3.
The firm also said it would be building a new plant in Pohang, exclusively for producing the material for the SK affiliate. The contract will last for 4 years, up until Dec. 31, 2023. Annually, EcoPro BM will sell up to KRW 685.1 billion worth, which would surpass the 589.1 billion the firm posted in 2018.
The deal is also worth more than the KRW 1.85 trillion won contract between LG Chem and Posco Chemical, considered as the biggest deal in recent history of the industry.
The CAM5-N new factory that EcoProBM will build in Pohang will span up to 29,752 square meters of land where 3 production lines will run. The plant will have an annual capacity of up to 26,000 tons of cathode.
SK Innovation completed two EV battery producing factories in 2019, one in Hungary and the other in China. Each plant has an annual capacity of 7.5GWh. These facilities mean the firm needs more cathode materials, one of the key components of EV batteries.
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