Posco Chemical, OCI begin construction of pitch production plant

Executives from Posco Chemical and OCI pose for a photo during the groundbreaking ceremony of a pitch plant in Gongju, South Chungcheong, on Wednesday. [POSCO CHEMICAL]

Posco Chemical, together with chemical company OCI, began the construction of a plant to produce pitch, a key coating material used in secondary batteries.

P&O Chemical, the joint venture between Posco Chemical and OCI, held a groundbreaking ceremony in Gongju, South Chungcheong, on Wednesday. Executives from both companies and Mayor of Gongju Choi Won-cheol attended the ceremony.

P&O Chemical plans to invest 96.3 billion won ($69 million) into the project to complete the plant with an annual capacity to produce 15,000 tons of pitch by 2023. Pitch is a carbon material produced by refining coal or petroleum, and is used as a surface coating for anode materials and as a binder in the aluminum smelting process. Anodes are a key component in rechargeable batteries.

P&O Chemical was established in July 2020, with Posco Chemical holding a 51 percent stake and OCI holding the other 49 percent.

“In cooperation with OCI, we are able to contribute to strengthening the competitiveness of the Korean battery industry by localizing the production of pitch,” said Kim Joo-hyun, head of the planning and support division at Posco Chemical. “We will further expand cooperation between the two companies in the field of high value-added advanced materials and secure growth.”

BY LIM JEONG-WON [lim.jeongwon@joongang.co.kr]