South Korean steel company Posco Group recently held a groundbreaking ceremony for its new nickel and precursor production plants, aiming to ensure a reliable supply chain for secondary battery materials. The company partnered with CNGR, a leading Chinese company in precursor production, to establish joint ventures for nickel refining and precursor production. The nickel refining plant is expected to produce 50,000 metric tons of high-purity nickel annually, sufficient for approximately 1.2 million electric vehicles, while the precursor plant will have an annual capacity of 110,000 tons. With a total investment of 1.5 trillion won ($1.09 billion), the two plants are scheduled to begin production in 2026. Posco's decision to build these plants is driven by the increasing demand for electric vehicles and the current heavy reliance on imports for crucial materials like nickel and precursors. The ground-breaking ceremony, attended by officials from Posco, CNGR, and local government representatives, emphasized the companies' commitment to establishing a stable supply chain for secondary battery materials and enhancing synergies between their businesses. Posco also announced plans for further investments in securing stable supplies of secondary battery materials and next-generation materials.