Posco Future M (KRX:003670), the battery materials arm of Posco Holdings (KRX:005490), completed construction of a precursor plant in Gwangyang in order to build a fully localized battery materials supply chain, Yonhap News reported Tuesday.

The new plant, with an annual capacity of 45,000 tons, can supply materials for around 500,000 electric vehicles.

Precursors are intermediate materials used before producing cathode active materials in lithium-ion batteries, the report said.

Shares of Posco Future M rose nearly 3% in recent trade on Wednesday while those of Posco Holdings increased over 1%.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)