LS MnM signs $516 million deal to build Ulsan battery material plant

An employee works at LS MnM's Onsan copper smelter in Ulsan in Aug. 2023 [YONHAP]

LS MnM has signed a 670 billion won ($516.2 million) nonbinding agreement with Ulsan Metropolitan City to build a battery material plant in the southeastern port city, the copper supplier said.

With the signing of the memorandum of understanding (MOU) on Thursday, LS MnM will work with the regional government to establish an EV material production plant at a 23.7-acre site inside the Onsan National Industrial Complex.

As the new production plant will be situated near LS MnM’s Onsan smelter, the company is expecting to cut costs by leveraging the existing infrastructure of the copper smelting facility.

The plant will produce 22,000 tons of nickel sulfate, a core material for battery precursor, as well as cobalt sulfate and manganese sulfate. LS MnM also plans to reclaim lithium included in black mass — which is a feedstock for battery material extraction — to produce lithium hydroxide.

Lithium hydroxide is used to produce cathode materials.

The construction is scheduled to begin in the first half of 2024 and be completed by early 2026.

The plan is to connect a facility to refine mixed hydroxide compound, a nickel intermediate, with a black mass refining facility at the plant in order to bring up efficiency, according to LS MnM.

The two parties held an MOU signing ceremony on Thursday at Ulsan City Hall with LS MnM CEO and Vice Chairman Stuart Doh and Ulsan Mayor Kim Doo-gyeom in attendance.

“We will strive to enhance Korean battery’s global competence in the market as well as our company’s value through continuous technology development and investments,” said Doh.

“Ulsan has a well-rounded foundation encompassing not only the entire life cycle of an EV battery but also research and test facilities and we will do our best to support LS MnM in continuing to invest and grow,” said Kim.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]