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OCI breaks ground on a special raw material plant for silicon anode materials for lithium-ion batteries... Accelerating battery business

OCI breaks ground on a special raw material plant for silicon anode materials for lithium-ion batteries... Accelerating battery business

 

- OCI has started construction on a plant in Gunsan, Jeonbuk State, that will produce a special raw material for silicon anode materials with an annual capacity of 1,000 tons

- Long-term supply agreement with Nexeon Ltd., a UK-based silicon anode materials manufacturer, for five years starting from 2025

- Efficiency Maximized by utilizing TCS gas produced during the semiconductor polysilicon process

- OCI embarks on its journey to become a global leader in the semiconductor and lithium-ion batteries sectors

 

OCI, renowned as a global leading advanced materials company, has held a groundbreaking ceremony for a special raw material plant to produce silicon anode materials for lithium-ion batteries, marking the first step towards significant expansion in battery materials business.

OCI hosted the groundbreaking ceremony for the new plant on June 11 at the Gunsan National Industrial Complex in Jeonbuk State. The event was attended by OCI CEO YooShin Kim, Nexeon CEO Scott Brown, Jeonbuk State Vice Governor Jonghun Kim, Gunsan Mayor Imjune Kang, and other stakeholders and regional officials.

The new plant will be built on the idle site within OCI’s existing Gunsan plant, where OCI currently produces semiconductor polysilicon and phosphoric acid. OCI aims for completion of this new plant in the first half of 2025. OCI signed a long-term supply contract with Nexeon in July last year to supply approximately 70 billion KRW worth of a special raw material (SiH4) for silicon anode materials for five years from 2025. With the initial production capacity is 1,000 MT, OCI will consider expanding production in response to global market growth.

OCI maximizes efficiency by utilizing ultra-high purity trichlorosilane(TCS) produced during the semiconductor polysilicon manufacturing process as a raw material. A special raw material will be supplied to Nexeon’s plant through pipelines, minimizing carbon emissions. Advanced equipment will also be introduced to ensure both production efficiency and safety, enabling rapid response to any issues.

Nexeon, a leader in next-generation silicon anode materials with over 170 key patents related to lithium-ion batteries, began construction of a commercial production facility with an annual capacity of 1,500 MT near OCI's Gunsan plant in March.

Nexeon’s second-generation technology, improved upon the low silicon content of first-generation materials, solves the expansion issues of silicon, enhances the energy density, and increases battery capacity and charging speed by up to 50%. Nexeon has secured a long-term supply contract with Japanese battery manufacturer Panasonic with its technologies recognized highly. It is expected to significantly improve the driving range and charging performance of electric vehicles.

This groundbreaking ceremony marks the start of OCI's active expansion in the lithium-ion batteries and semiconductor sectors. OCI has also developed high-softening-point pitch, an essencial coating material for graphite anodes, by utilizing proprietaty technology for the first time in Korea. Furthermore, OCI will establish a joint venture with Japanese chemical company Tokuyama Corp. in Malaysia to produce semi-finished products of semiconductor polysilicon. In addition, OCI is actively pursuing various projects and R&D investments to expand its semiconductor and battery materials business.

OCI CEO YooShin Kim stated, "with the beginning of construction on a special raw material plant, OCI and Nexeon will deliver transformative solutions that accelerate the future of battery technology. We are committed to contributing to the eco-friendly energy era. OCI will focus its corporate capabilities on becoming a global leading advanced materials company in the semiconductor and lithium-ion batteries fields and strengthen our market dominance with our proprietary technology."

 

Photo 1. commemorative Photo from OCI’s Groundbreaking Ceremony for a special raw material plant for silicon anode materials

(Photo description) Officials attending the groundbreaking ceremony for OCI's special raw material plant for silicon anode materials are taking a commemorative photo. (From the second left) Nexeon CEO Scott Brown, Chairman of the Gunsan City Council Youngil Kim, Jeonbuk State Vice Governor Jonghun Kim, OCI CEO Yooshin Kim, Gunsan Mayor Imjune Kang.