Posco Chairman Kwon Oh-joon vowed Friday to build a smart factory that has an automation system to produce high quality anode materials for rechargeable batteries, the company said Friday.

During a visit to Posco Chemtech, a subsidiary of the steel giant that produces anode materials in Sejong, south of Seoul, Kwon said the company would have an automated system capable of producing 30,000 tons a year in the next three years.

“The demand for medium and large secondary batteries in the anode materials market is rapidly increasing due to electric cars, energy storage systems and so on,” said Kwon during his visit to Posco Chemtech.

“We will secure future competitiveness by building a smart factory that automatically makes world-class anode materials,” he said.

The latest announcement is in line with Kwon’s efforts to boost sales in the company’s nonsteel business.

Posco Chemtech has gained experience and know-how in industrial materials by entering the coal chemistry sector, the company said.

The affiliate is seeking to flag 200 billion won ($176 million) in sales by 2020, the company said.

By Kim Bo-gyung (lisakim425@heraldcorp.com)