P&O Chemical, a joint venture between Posco Chemical and OCI, will produce petroleum pitch material for lithium-ion batteries, to respond to increasing demand for battery cells around the globe, Posco Chemical said Thursday.

Petroleum pitch is used as a base material for anodes when producing lithium-ion batteries.

According to Posco Chemical, the company and its partner OCI will invest a combined 74.5 billion won ($63.4 million) in the joint venture’s project, with a goal of securing 15,000 metric tons of pitch production capacity by 2024.

Posco Chemical expects that the new addition to the company’s portfolio will increase its earnings in the future.

The company added that the latest project will allow the country to reduce imports of petroleum pitch used in rechargeable batteries, which South Korea previously depended entirely on from foreign sources.

Posco Chemical holds a 51 percent stake in P&O Chemical formed in 2020. OCI holds the remaining 49 percent stake.