POSCO Future M to establish overseas artificial graphite anode plant, targeting global order growth

New plant in Vietnam to enhance quality and cost competitiveness while expanding production capacity

Company to pursue global orders in earnest, leveraging supply chain competitiveness, product portfolio, and process technology innovation

POSCO Future M is establishing an overseas plant for artificial graphite anode materials as part of its drive to expand global orders.

As trade regulations and protectionism intensify worldwide, the need to stabilize supply chains for key battery materials is becoming increasingly critical. Against this backdrop, POSCO Future M has been in ongoing discussions with multiple customers regarding artificial graphite anode material and is now making a strategic investment to scale up production capacity and strengthen its business competitiveness.

At a board meeting on the 5th, POSCO Future M approved an investment of approximately KRW 357 billion to build a new plant for artificial graphite anode materials in Thai Nguyen, an industrial city in northern Vietnam. Construction is set to begin in the second half of this year, with mass production targeted for 2028. The facility will be built on a site capable of supporting up to 55,000 metric tons of production capacity, with further expansion to proceed in phases as additional orders are secured.

Artificial graphite anode material is a key battery material well-suited to improving fast-charging performance and extending battery life. While demand for the material continues to grow steadily, heavy reliance on a limited number of countries has made supply chain diversification an urgent priority.

POSCO Future M currently operates an artificial graphite anode material plant in Pohang, Gyeongsangbuk-do Province, with an annual production capacity of 8,000 metric tons. Building on the manufacturing expertise gained through domestic operations, the company plans to produce cost-competitive products at its Vietnam facility for supply to global customers.

Vietnam offers significant advantages in reducing costs across investment, electricity, labor, and logistics, with a cost structure that remains competitive even relative to other Southeast Asian countries such as Indonesia. The country also benefits from well-developed industrial infrastructure, including a reliable power grid, and is actively cultivating favorable trade conditions with major markets, including the United States, through its export-driven economic growth strategy.

The United States last year introduced Prohibited Foreign Entity (PFE) requirements under the implementing regulations of the Inflation Reduction Act (IRA), while Europe has established targets under the Critical Raw Materials Act (CRMA) to reduce dependence on specific countries for strategic raw materials, reflecting a broader global push to restructure supply chains.

In response to these market dynamics, POSCO Future M has been working toward full vertical integration of its supply chain across the entire production process for both natural and artificial graphite anode materials - from raw materials and intermediate inputs through to finished products - and is increasingly recognized as a viable alternative for global automakers and battery manufacturers seeking to diversify their supply chains.

POSCO Future M first localized natural graphite anode material production in 2011, and went on to complete its artificial graphite anode material plant in Pohang in 2021, establishing a full-scale mass production system and playing a leading role in advancing supply chain self-sufficiency for Korea's battery industry. The company has further diversified its anode material portfolio to cover the full product spectrum, expanding capacity for both natural and artificial graphite anode materials while also advancing the commercialization of silicon anode material, and has earned wide recognition for its technological capabilities through continuous process innovation aimed at improving productivity.

Leveraging its supply chain solutions and technological capabilities to navigate trade regulations across major markets, the company is currently in supply discussions with numerous customers in Korea, North America, and the EU for both cathode and anode materials. POSCO Future M is committed to continuously strengthening its business competitiveness and expanding its sales, aiming to go beyond its standing as Korea's only producer of both cathode and anode materials and emerge as a top-tier global battery materials player.