– Korea Zinc invests KRW 506.3 billion in an all-in-one refinery slated for completion in 2026, making it the world’s largest non-Chinese producer of nickel sulfate

– With the introduction of a ‘low-carbon production process’, the new refinery will reduce its carbon footprint, leveraging advanced refining technologies to minimize environmental impact

– Yun B. Choi, chairman of Korea Zinc, stated, “Korea Zinc will contribute to the establishment of the domestic secondary battery supply chain by integrating its world-leading smelting technology into nickel production”

Korea Zinc is taking the lead in stabilizing the supply network for nickel, a key material for electric vehicle (EV) batteries, through the establishment of an all-in-one nickel refinery enabled by cutting-edge eco-friendly smelting technologies.

On November 15, Korea Zinc hosted a ground-breaking ceremony for an all-in-one nickel refinery with an annual production capacity of 42,600 tonnes (in nickel content) at the Onsan National Industrial Complex, Ulsan in the presence of distinguished guests such as Duck-soo Han, Prime Minister of Korea, Doo-gyeom Kim, Mayor of Ulsan, Rep. Seongmin Park, and Yun B. Choi, Chairman of Korea Zinc, and Nae-hyun Choi, President of Korea Energy Materials (KEMCO).

The ceremony brought together approximately 200 guests, including key partners of Korea Zinc and KEMCO such as Hyundai Motor Group, LG Chem, Hanwha, Trafigura, and GM, vendors, and representatives from local authorities.

Korea Zinc plans to invest KRW 506.3 billion in establishing the all-in-one nickel refinery through its nickel sulfate subsidiary, KEMCO, to start commercial production in 2026. The establishment of the world’s first all-in-one nickel refinery will enable Korea Zinc and KEMCO to process an entire range of nickel-containing materials from nickel matte to mixed hydroxide precipitation (MHP) derived from nickel laterite ore, to produce nickel sulfate, cobalt sulfate, and precursors. It marks a preemptive move to address surging demand for battery materials and parts with the expansion of the EV market and complete the supply networks for the domestic secondary battery industry.

With the start of commercial-scale production in 2026, the all-in-one nickel refinery will provide high-purity nickel sulfate across the secondary battery supply chain to produce precursors and cathode materials. Notably, the high-purity nickel to be produced by KEMCO will be one of the world’s most competitive materials compliant with the US Inflation Reduction Act (IRA), allowing Korean businesses to secure price competitiveness in global markets and diversify their supply networks for secondary batteries.

Meanwhile, the all-in-one nickel refinery is designed to reduce its environmental impacts by implementing a low-carbon production process. The new refinery will deploy eco-friendly technologies, which set it apart from conventional nickel refiners, to dramatically cut CO2 emissions from the nickel production process, and thus align with the global transition to carbon neutrality.

“With its world-class smelting technologies developed over the past 50 years, I look forward to Korea Zinc’s advancement into key secondary battery materials business,” stated Prime Minister Duck-soo Han at the ground-breaking ceremony. “Since the implementation of the IRA and export controls from key mineral-producing countries, the importance of minerals refining and materials processing has grown. Against this backdrop, it is very significant that a foundation to produce high-purity nickel, a key material for cathode materials, has been established in Korea, using solely domestic technology.”

“Korea Zinc has been part of the half-century history of the Onsan National Industrial Complex since its inception. It was the support from the government and local communities that has made Korea Zinc as we know it today—one of the world’s largest and leading non-ferrous metal smelters and a key contributor to the Korean economy,” stated Yun B. Choi, Chairman of Korea Zinc. “We will work to secure a global leading position in the secondary battery materials sector as our new challenge for the next 50 years, and will do so with our own technology and capital.”

Nae-hyun Choi, President of KEMCO, stated, “Once completed, the all-in-one nickel refinery will increase Korea Zinc’s total nickel production capacity to 65,000 tonnes a year, which is enough to produce 1.6 million units of EVs, making it the world’s largest non-Chinese producer of nickel.”

Recognizing the importance of nickel, a key secondary battery material, Korea Zinc and KEMCO have focused their R&D efforts in recent years to develop eco-friendly and innovative refining processes. The company is confident that it will be able to apply its world-class technologies and 50 years of expertise gained in the refining of non-ferrous metals such as zinc and lead to nickel refining. Indeed, Korea Zinc delivers high margins in the non-ferrous metal segment, on the back of its distinctive refining technologies, and is well positioned to leverage its strengths for the nickel refining business.

[Attached Photo – “Ground-breaking ceremony for the Korea Zinc-KEMCO all-in-one nickel refinery attended by Duck-soo Han, Prime Minister of Korea, and Yun B. Choi, Chairman of Korea Zinc”]