Securing new global customers for the anode material business strengthens the foundation for business growth

Continuing customer expansion based on differentiated technology, manufacturing capabilities, and supply chain competitiveness

POSCO Future M is facilitating its global market expansion by securing a major Japanese battery company as a new customer.

POSCO Future M signed an anode material supply contract with a Japanese battery company on the 11th. The company plans to produce natural graphite anode materials at its Sejong plant and supply them for electric vehicle batteries manufactured in Japan. The specific contract partner, duration, and scale will not be disclosed by mutual agreement between the two companies.

POSCO Future M has achieved customer diversification for business growth by securing an additional major Japanese battery company as a customer.

POSCO Future M has developed various natural graphite and artificial graphite anode materials tailored to customer requirements, maintaining a broad product portfolio, and is also advancing the commercialization of silicon anode materials. Additionally, the company has enhanced price competitiveness by pursuing process innovations to improve anode material productivity.

In particular, the company is gaining attention in the global market by establishing a self-sufficient system for graphite ore and intermediate materials. POSCO Future M has been working with the POSCO Group to secure an independent supply chain covering everything from raw materials to material production in response to supply chain diversification efforts and trade regulations in countries including the United States and the EU.

For natural graphite anode materials, the company is achieving self-sufficiency by securing graphite ore from countries outside China, including Africa, and through domestic production of spherical graphite, an intermediate material. For artificial graphite anode materials, the company has secured supply chain competitiveness by processing coke from domestic POSCO steel mills to manufacture graphite raw materials.

POSCO Future M plans to continuously expand its customer base by leveraging differentiated technology to broaden its product portfolio and advancing manufacturing capabilities and supply chain competitiveness.

▲A view of POSCO Future M’s Sejong anode material plant, which produces natural graphite anode materials supplied to Japanese battery companies.

Yoo Byeong-og, President of POSCO Future M, stated, “POSCO Future M is the sole alternative for stabilizing the U.S. anode material supply chain” and advocated for the consistent implementation of U.S. government policies.

Philip Goldberg emphasized, “It is crucial to establish a supply chain that does not rely on any single country.”

On the 7th, Philip Goldberg, U.S. Ambassador to South Korea, visited Pohang’s POSCO Future M’s synthetic graphite anode material plant.

Ambassador Goldberg, who has shown a keen interest in stabilizing the U.S. battery supply chain, visited POSCO Future M to directly inspect the production site of anode materials, a critical component in the battery supply chain.

POSCO Future M is the only domestic company that produces both cathode and anode materials, positioning it as a key partner in establishing a stable supply chain for the U.S. battery industry. Specifically, regarding anode materials, POSCO Future M is the only non-Chinese company among the top ten global market shareholders in the first quarter of 2024, according to market research firm SNE Research.

Synthetic graphite anode materials offer advantages over natural graphite anodes by extending battery life and reducing charging times, thereby sustaining demand as the electric vehicle market expands. POSCO Future M manufactures synthetic graphite anode materials using tar, a byproduct of steelmaking, ensuring reliable domestic sourcing of raw materials and enhancing supply chain stability compared to natural graphite anodes.

POSCO Future M has a total anode material production capacity of over 80,000 tons, including synthetic graphite anodes. However, the company faces challenges due to decreased operating rates and profitability as competitor countries have strategically reduced anode material prices. Consequently, there is increasing demand from global battery and automaker companies, as well as governments worldwide, for support and collaborative efforts to establish a stable global supply chain for anode materials.

During the meeting, Yoo Byeong-og, President of POSCO Future M, stated, “POSCO Future M is the only alternative for stabilizing the U.S. anode material supply chain; however, we are encountering practical difficulties due to the two-year deferment of FEOC. We urge the U.S. government to implement consistent policy to stabilize the supply chain.”

Ambassador Goldberg remarked, “It is important to build a supply chain that does not depend on any single country and is resilient against unfair trade practices.”

This visit marks not the first interaction between U.S. authorities and POSCO Future M. In February, Jose Fernandez, U.S. Deputy Assistant Secretary for Economic Growth, Energy, and the Environment, visited POSCO Future M’s Seoul office for the Korea-U.S. Senior Economic Dialogue (SED). During this meeting, POSCO Future M introduced its ongoing anode and cathode material projects and raw material investment initiatives aligned with U.S. supply chain stabilization policies. Subsequently, Ambassador Fernandez shared on his social media, “Met with POSCO Future M to discuss cooperation on electric vehicle battery and critical mineral supply chains and partnerships for a clean future.”

▲On the 7th, U.S. Ambassador to South Korea Philip Goldberg (left) and POSCO Future M President Yoo Byeong-og (center) listen to an explanation of the anode material manufacturing process at the Pohang synthetic graphite anode material plant.

▲On the 7th, POSCO Future M President Yoo Byeong-og (left) and U.S. Ambassador Philip Goldberg (center) tour the production line at the Pohang synthetic graphite anode material plant.

POSCO Group does its best to develop technologies that contribute to safety and carbon neutrality. We introduce POSCO Group’s excellent new technologies to create a better world! In this episode, we will learn about POSCO Future M’s localized technology for artificial graphite anode materials.

Graphite, which is familiar from pencil lead, is widely used in various industrial applications including refractories in converters that must withstand high temperatures. It is also a core anode material that determines the lifespan and charging performance of lithium-ion batteries for electric vehicles.

POSCO Future M is the only company in Korea that produces both anode and anode materials, which are core materials for secondary batteries. While the company was producing natural graphite anode materials made from natural graphite, it developed the technology to produce artificial graphite anode materials. POSCO Future M’s artificial graphite anode manufacturing technology processes needle coke, a raw material, at a high temperature of over 3,000 ℃ to produce anode material. It was the first Korean company to develop and commercialize artificial graphite anode production technology, which has increased the competitiveness of the domestic secondary battery industry. Why did the company develop technology for localizing artificial graphite, and what has the technology development changed?

POSCO Future M entered the anode material business after realizing that coal tar, a byproduct of the steelmaking process, can be used to produce anode materials. With continuous technology development, it became the only Korean company to produce natural graphite anode materials in 2011.

As orders increased from domestic companies that had imported anode materials from overseas, POSCO Future M increased its natural graphite anode material production capacity and expanded its product portfolio to include artificial graphite anode materials. Although artificial graphite anode materials are favored in the market for their long battery life and high-speed charging, commercialization is difficult because of high raw material costs. Until then, no companies produced them domestically, so only imports were available. When POSCO Future M succeeded in developing artificial graphite anode material first in June 2014, the use of this material increased as the electric vehicle market rapidly grew, and the company decided that it was the right time to produce artificial graphite anode materials and accelerated technological development proactively in response.

Manufacturing cost reduction and real-time quality management by introducing smart factory processes

Artificial graphite requires long and complex processes compared to natural graphite, and it is relatively difficult to control quality during production. POSCO Future M completely internalized all processes and introduced smart factory processes to reduce manufacturing costs and maintain customer trust through real-time quality control.

Let’s take a closer look at the production process of artificial graphite anode materials. The raw material for artificial graphite anode material is needle cokes, made by processing coal tar, a byproduct in the steelmaking process. There is a pulverizing process to adjust the size of needle coke particles, a granulation process of mixing needle coke and pitch during the pulverizing process, and a preliminary carbonization process of carbonizing the raw material before graphitization to increase productivity. Afterward, the raw material is thermally treated at 3000 ℃ or higher to convert it into artificial graphite, and the artificial graphite surface is coated evenly with pitch. Then, after post-processing, such as de-iron, the product is packed, which completes the production of artificial graphite anode materials in Korea.

Graphitization, which heat treats needle coke, the raw material, at a high temperature of 3,000 ℃ or higher is the core process and the most important technology that determines the quality and performance of the anode. It is very important to optimize the process conditions according to the raw material type and amount, and POSCO Future M has proprietary graphitization process technology for this.

The artificial graphite anode materials manufactured by POSCO Future M have the advantages of a longer battery lifespan due to their high structural stability and low impurity content and decreased fast charging time due to quicker lithium ion movement speed because of their isotropic structure.

Operational competitiveness is secured with a self-designed graphitization process

The graphitization process involves mixing raw materials in a crucible, placing them in a graphitization furnace, and heat-treating them at 3,000 ℃ or higher to produce graphite. Generally, when crucibles are put into and discharged from a graphitization furnace, people go directly into the furnace and perform various manual tasks, such as connecting the crane.
POSCO Future M designed the graphitization process automation system considering operator safety. Raw materials are transferred through a pipeline with strong air pressure, and robots put raw materials into crucibles and place them in the graphitization furnace. After being heat-treated at 3,000 ℃ or higher, artificial graphite is transferred through the pipeline to post-processes such as coating.

Value chain synergy effect to increase the resource circulation rate

Needle coke, the raw material for artificial graphite anode materials, is supplied by POSCO Future M’s subsidiary POSCO MC Materials. POSCO MC Materials produces needle coke by drying coal tar, a byproduct of coke manufacturing in the steelmaking process, at a high temperature. The localization of artificial graphite production technology has enabled POSCO to secure the steelmaking byproduct market and POSCO Future M to stably secure the raw material. It helps resource circulation and leads to the synergy effect of POSCO Group’s value chain.

Goal of increasing anode material production capacity

POSCO Future M plans to increase the annual anode material production capacity from 82,000 tons currently to 370,000 tons by 2030. Its goal is to maintain its No. 1 position in the global market outside China by having an annual production capacity of 182,000 tons of natural graphite anode materials, 153,000 tons of artificial graphite anode materials, and 35,000 tons of silicon anode materials by 2030.

First export of artificial graphite anode materials after localization

In December 2022, POSCO Future M signed a contract with Ultium Cells, a battery joint venture between U.S. GM and LG Energy Solutions, to supply artificial graphite anode materials worth approximately KRW 939.9 billion. The supply period is 6 years from 2023 to 2028. It is the first export of artificial graphite anode materials following localization. PSOCO Future M plans to secure its leadership in the artificial graphite anode material market by preemptively responding to increasing global demand, including expanding the supply chain in the battery industry following the enactment of the U.S. Inflation Reduction Act.

POSCO Future M is ready to fly higher with the localization of key battery materials!
Please follow us as we continue to pioneer the artificial graphite anode material market!

A comprehensive factory, including the upstream process, is scheduled to be completed in September this year… Establishment of a production system of 25,000 tons annually by 2030

POSCO Future M’s silicon-carbon composite (SiC) anode material demo plant is scheduled to start operation in April

POSCO Group has laid the foundation for the next-generation rechargeable battery material business by building a silicon anode material plant.

POSCO Silicon Solution completed the construction of a silicon anode material (SiOx) plant with an annual capacity of 550 tons at the Yeongil Bay Industrial Complex in Pohang on April 19.

The facilities completed this time correspond to the downstream process of the production line. POSCO Silicon Solution has set up an early operational system to respond quickly to customers’ demands for silicon anode materials.

Silicon anode material is a next-generation anode material that can improve the driving range and shorten the charging time of electric vehicles due to an increase in energy density by about four times compared to the graphite anode material currently used in most lithium-ion batteries. An annual production capacity of 550 tons is enough to produce 275,000 electric vehicles.

*Silicon anode material is divided into SiOx products, which synthesize oxide-based silicon (SiO₂) into silicon particles, and SiC products, which mix carbon materials with silicon particles.

**Silicon anode material (SiOx) processes consist of an upstream process of synthesizing oxide-based silicon, etc. to silicon particles and
a downstream process of coating the composite using POSCO’s unique technology.

According to SNE Research, the global silicon anode material market size is expected to increase from the current level of approximately 10,000 tons to approximately 285,000 tons in 2035.

POSCO Group acquired Terratechnos, a silicon anode material technology startup, in July 2022 to strengthen the anode material portfolio and preemptively respond to increasing demand, changed its name to POSCO Silicon Solution, and began construction of a silicon anode material plant in April last year.

POSCO Silicon Solution plans to complete the full production line, including the upstream process, in September this year, and the goal is to produce 25,000 tons of silicon anode material annually by 2030.

Moreover, POSCO Group plans to produce silicon-carbon composite (SiC) anode materials. POSCO Future M plans to begin the operation of the demo plant for the silicon-carbon composite anode material in the Yeongil Bay Industrial Complex in Pohang at the end of this month and provide solutions optimized for each customer’s silicon anode material needs.

POSCO Group plans to strengthen the full value chain of rechargeable battery materials by continuously increasing the competitiveness of next-generation rechargeable battery materials such as silicon anode materials, lithium metal anode materials, and solid electrolytes, as well as the rechargeable battery raw material business such as lithium and nickel and the anode and cathode material business.

▲ A panoramic view of POSCO Silicon Solution’s silicon anode material plant completed at the Yeongil Bay Industrial Complex in Pohang on April 19.

▲POSCO Silicon Solution executives and employees, including the CEO Jae-woo Lee (fifth from the right in the second row), take a commemorative photo in front of the silicon anode material plant completed on April 19.

Save your valuable time. Watch a short version of a long YouTube video in just 3 minutes! In this episode, join us in discovering POSCO Group’s future roadmap as it emerges as a global top-tier player with the domestic production of cathode and anode materials, the key elements of rechargeable batteries.

POSCO has recently received widespread attention for its impressive growth and innovation in identifying future demand industries. In particular, POSCO Group has emerged as a formidable force both at home and abroad in cutting-edge technologies such as mobile devices, electric vehicles, solar panels, and renewable energy storage systems. In Korea, only POSCO Future M is producing both cathode and anode materials, which are important materials that determine rechargeable battery performance, and has established itself as one of the major suppliers of high-quality rechargeable battery materials and is producing both anode and cathode materials.

Today, let’s look at the future of batteries with Senior Researcher Park Jae-beom at the POSCO Research Institute, which is focusing on anode materials that influence battery lifespan and charging speed. Join us as we explore POSCO Group’s blueprint that will shape the future of batteries. Let’s begin now!

Graphite: the core mineral that shapes the performance of electric vehicle batteries

As nations worldwide intensify efforts to reduce carbon emissions, the traditional automotive industry is undergoing a profound metamorphosis. It is shifting away from its reliance on internal combustion engines, pivoting to the era of electric vehicles, and embracing eco-friendly energy sources. Rechargeable batteries are at the center of electric vehicle production. A rechargeable battery consists of four materials: a cathode, an anode, an electrolyte, and a separator. It is no exaggeration to say that the cathode material, which determines the driving distance of an electric vehicle by increasing the energy density, and the anode material, which affects the charging speed and life of the battery, determine the performance of rechargeable batteries.

Lithium-ion batteries, commonly found in electric vehicles, produce electricity with the chemical exchange of lithium ions between the cathode and anode. The anode stores and releases lithium ions received from the anode material. In other words, battery performance hinges on the anode’s performance, and its ability to efficiently store and release lithium ions directly affects energy density and charging speed. Recent emphasis has been placed on developing anodes with heightened energy density, swift charging capabilities, and robust durability, to match the importance given to cathodes.

The primary material of the anode is graphite, much like the substance found in everyday items such as pencil leads or mechanical pencil refills. Metal is also used as a production material for anode materials, but graphite-based anodes dominate the market due to their affordability and high stability, and account for approximately 90% of anode production. Therefore, the majority of anode materials currently used in the market are made of either natural or synthetic graphite.

Sole provider in Korea! POSCO Group produces both natural and synthetic graphite

Natural graphite is obtained from mines as graphite ore, crushed to remove impurities, and refined to increase its purity in a process known as beneficiation. The resulting raw graphite undergoes various processes to be shaped into spherical graphite. Spherical graphite is coated with pitch and subjected to high temperatures in a process called calcination. This coating serves to encapsulate the graphite surface and enables the battery to withstand high temperatures and improve charging and discharging efficiency. Finally, the graphite undergoes size grading and iron removal, culminating in the production of natural graphite anode material with a purity approaching 99.9%.

Artificial graphite, used as an anode material, is produced from coke, a byproduct of steel production, rather than directly mined from graphite. Coke undergoes purification to remove impurities, followed by high-temperature treatment, resulting in needle coke formation. The needle coke is then pulverized, subjected to high temperatures for graphitization, and undergoes coating and iron removal processes to produce artificial graphite anode material.

The naturally derived graphite anode material and the synthetic graphite anode material, produced by different manufacturing processes, complement each other. The natural graphite anode material offers the advantage of large lithium-ion storage capacity at a low cost, while the synthetic graphite anode material is advantageous in terms of lifespan, output, and stability. For these reasons, a majority of rechargeable batteries for electric vehicles use a combination of natural and synthetic graphite.

POSCO Future M is the only Korean company that produces both natural and synthetic graphite anode materials. Natural graphite is planned to be secured from the Mahenge and Molo mines in Tanzania and Madagascar, which are invested by POSCO Holdings and POSCO International, in addition to existing suppliers. Synthetic graphite, on the other hand, has been successfully localized with the procurement of raw materials, needle cokes, by its subsidiary, POSCO MC Materials. Furthermore, through R&D collaboration with POSCO Holdings, POSCO Future M has developed a low-expansion, long-life natural graphite anode material that combines the advantages of synthetic and natural graphite.

Recently, China, responsible for approximately 70% of global graphite production, announced plans to tighten control over its graphite exports. Amidst the electric vehicle market’s expansion, China’s recent announcement of full control over graphite exports has dealt a significant blow to battery manufacturers worldwide. This declaration comes at a time when the anode material sector is experiencing annual growth rates of more than 20%. While this poses challenges for battery manufacturers worldwide, POSCO Group’s competitive position in the battery market is increasingly noteworthy. POSCO has been strategically advancing its anode material business to bolster self-reliance and reduce reliance on China since 2010. In the future, POSCO Group is expected to enhance its supply chain capabilities in the anode material sector and increase production autonomy.

POSCO Group leads battery industry with “full portfolio” development

Establishing a production system for silicon anode materials with a capacity of 35,000 tons by 2030

POSCO Group’s strategy to strengthen battery performance with anode material technology is expected to continue to develop. With the global demand for high-performance electric vehicles, batteries also need high-performance materials, leading to increased attention to various anode materials. Among them, you can mention silicon anode materials.

Silicon anode material has a nearly tenfold higher capacity per unit weight compared to graphite-based alternatives, which has the advantage of innovatively increasing electric vehicle range and facilitating rapid charging. However, it comes with challenges. The higher cost and structural instability of silicon due to volume expansion during charge and discharge are significant obstacles to overcome.

Due to these technical challenges, silicon anode material is currently not used exclusively in electric vehicle batteries. Instead, it is blended with graphite-based anode materials at a ratio of 4-5%. Nevertheless, silicon anode material is gaining attention as a potential solution to improve electric vehicle driving range and charging performance. Some in the industry foresee increasing the proportion of silicon in anode materials from 5% to 30% by 2030 with the development of technologies that enhance material structure stability. The silicon anode material market is expected to grow at an annual rate of 34%.

Consequently, POSCO Group is strategically consolidating its research efforts internally to drive the development of a production ecosystem for silicon anode materials, the cornerstone of next-generation products. Within this framework, POSCO Holdings has established its subsidiary, POSCO Silicon Solution. Furthermore, with the combined expertise of POSCO N.EX.T Hub (Future Technology Research Institue) and POSCO Future M, the Group plans to work together to build a production infrastructure capable of yielding 35,000 tons of silicon anode materials by 2030.

Harnessing its infrastructure, it will mass-produce next-generation lithium metal anode materials

In addition to silicon anode material, which boasts more than 10 times the energy density of graphite, another promising next-generation anode material is lithium metal anode material, which is evaluated to have even greater potential. Lithium is the lightest metal on Earth and holds the key to substantially reducing battery weight. Lithium metal anodes are hailed as the pinnacle of the next-generation anode material market because of their potential to enhance the fuel efficiency of electric vehicles.

POSCO Group has an Argentine lithium brine, which is an ideal environment for extracting high-purity lithium with minimal impurities to use as an anode material. Furthermore, it has the world’s best lithium refining technology. In addition, the independent technology accumulated with roll-to-roll processing, which produces thin lithium layers with wider widths, provides an economical and efficient solution for lithium metal anode production. POSCO Group will steadily develop these technologies to become a company that produces economically feasible lithium metal anode materials for next-generation batteries.

▼ Check POSCO Group’s anode material production competitiveness in video ↓

POSCO Group has the infrastructure and strength to produce a wide range of electrode materials, including natural and synthetic graphite, low-expansion natural graphite, silicon anode materials, and lithium metal anodes. In the future, the Group aims to establish a full portfolio to lead the electrode materials market. Stay tuned for our continued growth and advancements!