SMM Expands Production Capacity for Nickel Hydroxide Materials

Sumitomo Metal Mining (SMM) announced on Thursday the firm expands production capacity of nickel hydroxide precursor, which is the intermediate material for cathode material of automotive secondary batteries. The firm introduces additional production facilities for nickel hydroxide precursor in Isoura plant, Ehime, Japan and doubles the output capacity to 1,500 tonnes per month in September 2012.

SMM also plans to increase the production capacity for nickel sulfate, the base material for nickel hydroxide precursor. The firm constructs an additional factory inside Harima smelter, Hyogo, Japan with 20,000 tonnes of annual output capacity. The capacity will expand by 80% to 45,000 tonnes per annum as total with existent facilities inside SMM’s nickel plant in Ehime, Japan in February 2014. The investment accumulates 8 billion yen.

SMM has produced nickel hydroxide precursor at Isoura plant and consumed all the production inside the Group as the intermediate material for nickel hydroxide which is used as positive electrode material of nickel hydride batteries so far. SMM has supplied nickel hydroxide to battery makers. The demand is strongly increasing for nickel hydroxide along with hybrid electric vehicle (EHV) sales growth mainly in Japan and other countries. The demand is expected to expand more. SMM decided to reinforce the output capacity to meet the market growth.

SMM invests 2 billion yen for output expansion of nickel hydroxide precursor. The firm plans the sales of nickel hydroxide precursor to third-party positive electrode material makers after the capacity expansion in Isoura. SMM increases the outer sales lineup of battery electrode materials in addition to nickel hydroxide.

SMM also raises the productive capacity of nickel sulfate. SMM’s nickel plant in Ehime has operated productive facilities for nickel sulfate. The firm decided to invest 6 billion yen for construction of the second facility dedicated to nickel sulfate production inside Harima smelter. SMM establishes the comprehensive production system from base material to secondary battery positive electrode materials.