Shenzhen-listed battery material firm CNGR Advanced Materials said on 12 February that it will terminate the nickel refinery joint venture with South Korean giant Posco, Kallanish reports.

The decision to end investment in the project comes as CNGR seeks to control foreign investment risks and safeguard investors’ interests, it says. Additionally, the company will start preparations for listing on the Hong Kong Stock Exchange.

“Since reaching the investment cooperation intention, the company has actively promoted related businesses and maintained continuous communication with the partners,” CNGR explains in the announcement. “However, due to the continuous changes in the electric vehicle market and related industrial environment, the two parties have conducted multiple rounds of investment analysis and demonstration on aspects such as project operation and management costs, resulting in the project still not making substantial progress.”

CNGR notes it will continue to maintain a partnership relationship with Posco, looking to jointly explore cooperation opportunities in the fields of global new energy production capacity layout and technological innovation in the future. Ultimately, the companies would strive to provide high-quality precursor supply.

The nickel refinery project was approved in CNGR’s board meeting in June 2023. The JV project is held by its Hong Kong-based second-tier subsidiary (40%) and Posco Holdings (60%). With a planned investment of around KRW 410 billion ($282 million), the partners sought to produce and sell nickel sulphate using nickel matte. The plant was planned to be located in Pohang, South Korea, with a target production capacity of 50,000 metal nickel tonnes/year. 

It is unclear whether Posco will continue to lead the project without CNGR or with a new partner. Kallanish has contacted the company for comment.

On the dual listing plan, CNGR says it will better serve its dual circulation layout, which includes both domestic and international expansions.