Nexeon, an UK-based developer of silicon-based anode materials for lithium-ion batteries, has officially disclosed the site for its inaugural commercial production facility in Gunsan, the bustling industrial city in South Korea.
Construction of the state-of-the-art plant is poised to commence later this year, with production operations anticipated to kick-off in 2025. While the company has not yet divulged its exact targeted production capacity, the plant is projected to provide “tens of thousands of tons” of silicon anode material annually.
Strategically situated right next to a facility owned by the South Korean chemical company OCI, Nexeon’s new plant will benefit from a binding long-term supply agreement for monosilane—a critical raw material necessary for producing silicon anode materials. This agreement will facilitate the seamless transfer of monosilane via direct, dedicated pipelines between the two facilities, offering Nexeon significant cost advantages and operational efficiencies.
Nexeon and OCI have opted not to disclose the specific quantities in their supply agreement. However, both companies have underscored the considerable benefits arising from their close proximity, including the utilization of a byproduct gas generated during the production of polysilicon for semiconductors at the Gunsan plant. This innovative approach will negate the need for complex and costly logistics operations and equipment for the transportation of gas chemicals.
Demonstrating the criticality of monosilane in silicon-containing anode production, a similar deal in Germany has caught attention. To secure a reliable monosilane supply, Nexeon’s competitor, Group14, recently acquired the German company Schmid Silicon, along with its plant in the German state of Saxony.
In an encouraging development, Nexeon recently announced Panasonic as its first prominent buyer. The lithium-ion batteries produced by Panasonic in its new facility in De Soto, Kansas, set to launch in 2025, will feature the anode material supplied by Nexeon.
Expressing optimism about the collaboration with OCI, Scott Brown, the CEO of Nexeon, deemed it a significant milestone that will expedite the scaling of their operations. He further emphasized that securing a robust supply chain for raw materials, coupled with the supply agreement with Panasonic, brings Nexeon one step closer to delivering the highest performing and cost-efficient silicon anode materials—an essential factor for the advancement of energy-dense batteries.
