November 23, 2024

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Kim Jun-hyung, head of eco-friendly future materials at Posco Holdings, is looking at the booth of Posco Holdings in the battery exhibition held on Wednesday. (Yonhap)

A top executive of Posco Holdings has hinted at a potential joint venture with a Chinese company for the production of lithium iron phosphate (LFP).

Kim Jun-hyung, head of eco-friendly future materials at Posco, revealed the suggestion during a meeting with reporters at the company's booth at the Interbattery 2024 exhibition in Coex, southern Seoul, on Wednesday.

Kim mentioned the strong presence of Chinese companies in the LFP sector, highlighting the historically good relationships that some Chinese firms have with Posco Group.

When asked about the possibility of a joint venture with a Chinese firm, Kim confirmed it, suggesting a 75:25 ratio ownership split in favor of Posco in consideration of US Investment Retirement Accounts (IRA).

The lithium hydroxide manufacturing plant of Posco Pilbara Lithium Solution, located in South Jeolla Province (Posco)

Kim indicated a phased approach to collaboration with Chinese entities and stressed the necessity to promptly finalize agreements concerning the IRA and the Advanced Manufacturing Production Credit.

Kim echoed the sentiments of chairman-nominee Chang In-hwa regarding the company's unwavering commitment to investing in secondary batteries. He reiterated Chang’s stance on sustaining investment in this sector without adjustment, emphasizing its strategic importance for future growth industries.

Kim highlighted the significance of preemptive measures not only for secondary batteries but also for hydrogen, anticipating their future relevance in steel production.

Previously serving as president of Posco Future M, Kim emphasized the proactive stance needed to address emerging industry trends and requirements effectively.

By Kim Jun-hong (hongie@heraldcorp.com)