Air Products Gets Supply Contract For POSCO's Sejong Site
Zacks Investment Research | Aug 13, 2019 09:52PM ET
Air Products and Chemicals, Inc. (NYSE:APD) recently announced that POSCO Chemical has awarded it a contract for supplying on-site nitrogen to a new anode material manufacturing facility, which is being built in Sejong, South Korea.
The move reflects POSCO Chemical’s continued confidence in Air Products’ reliability, safety and operational excellence as the former continues to ramp production capacity in order to capitalize on the rapidly growing secondary battery market.
The outlook of South Korea's secondary battery industry is promising, which can be attributed to environmental and energy trends, per Air Products. Applications in both electric vehicles and energy storage systems are on the rise.
Air Products supplies pipeline oxygen to POSCO Chemical's cathode material manufacturing facility in Gumi. It will supply onsite nitrogen and oxygen to its new cathode material production line in Gwangyang.
Notably, anode materials are paired with cathode materials in secondary batteries. They are critical for battery performance. These materials are generally used in mobile phones, energy storage systems, consumer devices, electric bicycles, golf carts and electric vehicles.
The global steelmaker, POSCO Group, is expanding business into the secondary battery industry. In April 2019, POSCO Chemical was formed following the merger of POSCO ESM and POSCO Chemtech, which are two affiliates of the group engaged in the production of key battery materials.
Air Products’ shares have rallied 39.8% in the past year against the Zacks Investment Research
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