CIS Chemical begins producing battery precursor materials

[Courtesy of CIS Chemical]

CIS Chemical, which specializes in secondary battery materials, announced on Thursday that it began mass producing high-purity nickel hydroxide precipitate (Pure-MHP). Pure-MHP is a key raw material for battery precursors and the South Korean company will deliver it to both Korean and international battery customers.

CIS Chemical provided test samples of high-purity MHP to a major Chinese precursor manufacturer earlier in 2024, successfully passing the customer‘s quality evaluation and certification process. About 100 tons of high-purity MHP was reportedly loaded into a container bound for China early on Monday. The South Korean company also completed the initial delivery of about 50 tons of high-purity MHP to another customer, which produces battery precursor materials, on the same day. Discussions regarding long-term supply contracts are expected to take place after the initial supply.

This is the first time that high-purity MHP has been directly produced and supplied within Korea, according to CIS Chemical. The company operates a production facility capable of producing 20,000 tons of MHP annually in Gwangyang, Jeonnam Province. Plans are underway to expand the MHP manufacturing line by the end of 2024 for the company to proactively carve out a share in the waste battery market.

MHP is an intermediate material used in the production of nickel sulfate, a key material for the cathode material precursor of secondary batteries. Unlike conventional MHP extracted from natural minerals, CIS Chemical produces MHP directly from used battery materials.

CIS Chemical also appointed KB Securities as its lead underwriter for its planned IPO and aims to be listed on the Kosdaq stock exchange by the end of 2024. The company recently passed a technical evaluation for a special listing for technology companies as the first step towards this goal.