SEOUL (Reuters) – South Korea’s Posco Future M said on Wednesday that it is suspending a plan to build a new battery materials factory with China’s Zhejiang Huayou Cobalt in South Korea, citing slowing demand for electric vehicles.
The two companies last year signed a preliminary deal to create a joint venture to build a precursor and nickel raw material production plant in the South Korean city of Pohang.
POSCO Future M said in a regulatory filing that the EV market “chasm” will make it challenging for the project to be economically feasible.
($1 = 1,341.9900 won)
(Reporting by Hyunjoo Jin; Editing by Ed Davies)
