JX Group and GS Group Launch Li-ion Battery Cathode Material Business

JX Nippon Oil & Energy announced on Monday the firm starts joint production and sales of lithium ion battery’s cathode material with GS Caltex of South Korea. Their existent joint venture company, Power Carbon Technology, in Gumi City, Gyeongsangbuk, South Korea, will newly start production of lithium ion battery’s cathode material in July 2012 with initial output capacity at 2,000 tonnes per year.

Power Carbon Technology will produce high performance cathode material for lithium ion battery by heat treating of petroleum coke, supplied from JX Nippon Oil & Energy, at 1,000 degrees Celsius. The JV will construct a plant with output capacity at approximately 2,000 tonnes per year until the end of March 2012.

Power Carbon Technology started production and sales of carbon electrode material for capacitors in April 2010. The JV’s capital fund is 2.3218 million won (approximately 1.7 billion yen) fifty-fifty invested by JX Nippon Oil & Energy and GS Caltex.

Lithium ion battery’s adoption is expected to increase largely, especially for electric vehicles and hybrid cars. As the market growth, demand for cathode material is also expected to increase.