AVESS Energy is delighted to announce the signing of a non-binding MoU with Gyeongsangbuk-do Province, Pohang City, Unicoh Specialty Chemicals (Unicoh), and Unicoh ESS. Co., Ltd to build a vanadium sulfate electrolyte manufacturing plant in Pohang, South Korea.
The signing ceremony was attended by AVESS Managing Director Young Yu Austrade Seoul Trade and Investment Commissioner Dane Richmond, Gyeongsangbuk-do Province Governor Lee Cheol Woo, Pohang City Mayor Lee Kang Deok, Unicoh CEO Song Bang Cha Rang and Unicoh ESS Co., Ltd (Unicoh ESS) CEO Lee Yong Jin.
Unicoh ESS is seeking to invest A$10.2m (KRW 9.3b) to build a 500-tonne vanadium manufacturing plant on a 24,235 m2 site in South Korea’s Yeongil Port Industrial Complex Foreign Investment Zone. The manufacturing plant is expected to create more than 60 direct jobs in Pohang City.
AVESS is anticipating an A$4m (KRW 3.7b) investment in Unicoh ESS, to provide general working capital while strengthening its positioning in the global VFB market. AVESS is now expected to pursue vanadium offtake opportunities with local vanadium developers to enhance Australia’s vanadium value chain.
The MoU closely follows the establishment of the JV Co (Unicoh ESS) by AVESS (40%) and Unicoh (60%) in Pohang, South Korea on 4 July 2024. South Korean chemical solutions company Unicoh has been a POSCO Certified Partner since 2005.
Unicoh ESS seeks to capitalise on the synergies between AVESS’ VFB energy storage solutions and Unicoh’s vanadium sulfate electrolyte technology, enabling AVESS’ to strengthen its manufacturing capabilities and positioning in the global vanadium electrolyte market, which is projected to reach US $537.8m by 2030 at a CAGR of 23% during 2023-2030.
The JV Co seeks to accelerate AVESS’ R&D efforts to create a vanadium sulfate electrolyte that improves energy density and operating temperatures by ~50 degrees – without precipitation – while exploring licensing and manufacturing IP, and domestic and global export opportunities.
Commenting on the synergies created by Unicoh ESS and the signing of the MoU, AVESS Managing Director Young Yu said:
“The creation of Unicoh ESS and the signing of this vanadium electrolyte manufacturing MoU strengthens AVESS’ capabilities and positioning in the global vanadium electrolyte market, as we edge closer towards Australian-made vanadium batteries.
Unicoh ESS comes at an exciting time as we synergise decades of complementary capabilities and expertise across the vanadium electrolyte space, while this MoU is another demonstration of our readiness to locally manufacture commercial-scale VFBs,” said Mr, Yu.
Commenting on Unicoh ESS’ investment in vanadium electrolyte manufacturing and its significance to Pohang City’s local economy, Deputy Mayor Sang-gil Jang said:
“Unicoh ESS’ investment in the VFB electrolyte business will be a turning point in Pohang City’s battery industry development.
“We hope that Unicoh’s new venture will be the initiator for small and medium-sized companies in Pohang City to enter the global market,” said Mr. Jang.
ENDS
