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Hanwha Solutions Corp is spending 338 billion won to boost its annual production of caustic soda in its Yeosu factory by 270,000 tons to 1.11 million tons by 2025,
Also known as sodium hydroxide, caustic soda is a chemical widely used to clean or bleach industrial materials for making rechargeable batteries.
In the case of electric vehicle batteries, caustic soda cleans the impurities in making cathode materials.
The chemical and energy unit of South Korea’s Hanwha Group decided on the investment as it expects the demand for such basic materials to increase rapidly due to the surging demand for electric vehicles.
The demand for caustic soda in South Korea is seen growing over 5 percent to 1.6 million tons by 2025 on an annual basis.
