Samsung SDI, South Korea's leading battery maker, and EcoPro BM, a mid-sized company specializing in battery materials, will set up a joint venture to produce next-generation cathode materials.
EcoPro BM said on Feb. 10 that it has signed a deal with Samsung SDI to set up a joint venture "EcoPro EM” after a board meeting vote. EcoPro BM and Samsung SDI will invest 72 billion won and 48 billion won, respectively, in the new entity by 2021. Its stake is 60 percent for EcoPro BM and 40 percent for Samsung SDI.
With the establishment of the joint venture, EcoPro BM will be able to produce the next-generation cathode materials from Samsung SDI’s exclusive line. The company said it expects to increase production efficiency.
It is expected that Samsung SDI will be able to secure stable supplies of cathode materials. The cathode materials produced by EcoPro EM will only be supplied to Samsung SDI.
The cathode material is a key material that makes up lithium-ion batteries along with cathode materials, electrolytes, and separators. Battery industries are working on stable supply and demand for raw materials as demands for electric vehicle batteries increase.
The establishment of the joint venture will be completed this month, and the construction of the cathode production line in Pohang, North Gyeongsang Province, is scheduled to begin within this year. Its goal is to produce it during the first quarter of 2022.