Posco Chemical will establish a new cathode plant with an annual production of 60,000 metric tons in Pohang, North Gyeongsang Province, the company said Thursday.

According to the refractory and secondary battery materials arm of South Korean steel giant Posco, it will invest 600 billion won ($524.1 million) starting next year to construct the cathode plant on a 120,000-square-meter site inside an industrial complex of the coastal city.

Once completed, the Pohang plant will be Posco Chemical’s third cathode plant in Korea. Together, the three cathode plants will offer a combined annual production capacity of 160,000 tons, enough to power 1.8 million electric vehicles equipped with 60 kilowatt-hour battery packs.

“Posco Chemical will establish overseas cathode plants that can produce a total of 110,000 tons to increase the global production capacity to 270,000 tons by 2025,” a company official said.