ULSAN — HS Hyosung Energy Solution Korea, a joint venture set up by HS Hyosung Group with Belgium-based Umicore, has chosen Ulsan as its production base for next-generation battery materials. The company will invest a combined 1.2 trillion won ($860 million) through 2030 to build silicon anode production capacity.
The city of Ulsan said on the 14th that it signed a memorandum of understanding on the new silicon anode plant at the mayor's office in city hall, with Ulsan Mayor Kim Sang-wook and HS Hyosung Energy Solution Korea CEO Lee Ki-soo in attendance.
Under the agreement, HS Hyosung Energy Solution Korea will build a large-scale production plant in three phases on a site in the Ulsan-Mipo National Industrial Complex. Silicon anodes offer higher energy density and faster charging than conventional graphite anodes, making them a key material for extending the driving range of electric vehicles and shortening charging times.
The investment will be carried out in stages through 2030. In the first phase, the company will spend 300 billion won to complete its first plant, MPK-1, with annual capacity of 5,000 tons by the first quarter of 2028. In the second phase, it will invest another 300 billion won to add 5,000 tons of annual capacity between the first quarter of 2028 and the third quarter of 2029. In the final phase, it will spend 600 billion won from the first quarter of 2029 to the third quarter of 2030 to add 10,000 tons of annual capacity. Once the third phase is complete, total annual capacity will reach 20,000 tons.
HS Hyosung Energy Solution Korea said it will give priority to hiring Ulsan residents during both construction and operation of the plant to help create local jobs. The city will provide administrative support, including expedited permits and approvals, to keep the project on track.
The investment is the first new business HS Hyosung Group has pursued in earnest since its spinoff. It also carries symbolic weight, establishing an advanced materials base in Ulsan, the group's birthplace and manufacturing hub.
"We selected Ulsan, the birthplace of the Hyosung Group, as our first investment site, and we will become an advanced materials company that grows together with the region," CEO Lee said. "We will help strengthen the competitiveness of global supply chains by developing next-generation battery materials into a national strategic industry."
"This will be a turning point for Ulsan to lead the global supply chain in core next-generation battery materials," Mayor Kim said. "We will spare no administrative support to develop Ulsan into a center of the future secondary battery industry."
