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.

▲ Production line at POSCO Future M’s artificial graphite anode material plant in Pohang.

Aims to strengthen POSCO Group’s secondary battery business and enhance the supply chain for mineral security in Korea

POSCO INTERNATIONAL has begun developing the world’s second-largest graphite mine by reserves. By building a supply chain for graphite—an essential EV battery material—it aims to boost the competitiveness of POSCO Group’s secondary battery business while reinforcing the supply chain for mineral security in Korea.

▲ Officials and company representatives at the groundbreaking ceremony of the Mahenge Graphite Mine in Tanzania. (From left) Kim Dae Young, CRO (Chief Regional Officer) of Africa and Middle East Region at POSCO INTERNATIONAL; Ahn Eun Ju, Ambassador of the Republic of Korea to Tanzania; John De Vries, CEO of Black Rock Mining; Adam Kighoma Malima, Regional Commissioner of Morogoro, Tanzania; Anthony Mavunde, Minister of Minerals, Tanzania; Richard Crookes, Non-Executive Director of Black Rock Mining; Nehemiah Kyando Mechechu, Treasury Registrar, Ministry of Finance of Tanzania; Boma Raballa, Chief Commercial Officer (CCO) of CRDB Bank, Tanzania; Christopher Ellinger, Deputy High Commissioner of Australia to Kenya.

On the 9th (local time), POSCO INTERNATIONAL held a groundbreaking ceremony at the Mahenge mine in Ulanga, Morogoro, Tanzania. The event was attended by 100 officials, including Kim Dae Young, CRO (Chief Regional Officer) of Africa and Middle East Region at POSCO INTERNATIONAL; Anthony Mavunde, Tanzania’s Minister of Minerals; John De Vries, Black Rock Mining CEO; Ahn Eun Ju, Ambassador of the Republic of Korea to Tanzania.

▲ Groundbreaking ceremony of the Mahenge Graphite Mine in Tanzania. (From left) Kim Dae Young, CRO (Chief Regional Officer) of Africa and Middle East Region at POSCO INTERNATIONAL; Ahn Eun Ju, Ambassador of the Republic of Korea to Tanzania; John De Vries, CEO of Black Rock Mining; Richard Crookes, Non-Executive Director of Black Rock Mining; Adam Kighoma Malima, Regional Commissioner of Morogoro, Tanzania; Anthony Mavunde, Minister of Minerals, Tanzania; Nehemiah Kyando Mechechu, Treasury Registrar, Ministry of Finance of Tanzania; Boma Raballa, Chief Commercial Officer (CCO) of CRDB Bank, Tanzania; Christopher Ellinger, Deputy High Commissioner of Australia to Kenya.

The Mahenge mine holds approximately 6 million tons of natural graphite reserves. Its development is led by Australian resource company Black Rock Mining, with POSCO Group participating as a strategic partner. This project is part of the Mineral Security Partnership (MSP), a global initiative led by major countries such as the US, South Korea, Japan, and the EU to ensure mineral security. The MSP, a multilateral framework aimed at stabilizing the supply of critical minerals, is expected to play a key role in securing the critical mineral supply chain.

Graphite is a critical material for EV battery anode production. China dominates over 70% of global supply, making supply chain stability a global issue. Recently, major countries are intensifying efforts to reduce dependence on China.

The US Department of Commerce made a preliminary decision to impose a 93.5% anti-dumping tariff on Chinese graphite. When added to existing tariffs, the total rate reaches up to 160%, practically limiting Chinese graphite’s access to the U.S. market. These strong US trade measures increase the need for supply chain diversification among major governments and global automakers and battery industries. POSCO INTERNATIONAL’s project is gaining attention as a key initiative meeting these strategic demands.

In 2021, POSCO Group joined the Mahenge graphite mine development as POSCO Holdings invested $7.5 million in Black Rock Mining. POSCO INTERNATIONAL signed a 30,000-ton annual graphite supply contract in 2023, followed by a second-phase contract of the same scale in 2024, strengthening cooperation.

Black Rock Mining plans to conduct a capital increase this year for the final investment decision (FID). POSCO Holdings currently holds a 7.45% stake in Black Rock Mining, and upon completion of POSCO INTERNATIONAL’s $40 million investment agreement in September 2024, POSCO Group’s stake will increase to 19.9%.

Starting commercial production in 2028, POSCO INTERNATIONAL will receive 60,000 tons of natural graphite annually for about 25 years. The secured graphite will be used in the production of anode materials by POSCO Future M, significantly increasing the group’s raw material self-sufficiency for secondary battery materials.

This will enhance POSCO Group’s secondary battery material competitiveness, improve raw material self-sufficiency for domestic battery industry, and play a key role in national mineral security and global supply chain stabilization.

Through this African graphite mine development, POSCO INTERNATIONAL expands its resource development portfolio and enhances global resource development capabilities. The company plans to strengthen cooperation with major mineral suppliers to enhance the stability of the secondary battery material supply chain.

A POSCO INTERNATIONAL official said, “The Mahenge mine development is a significant opportunity to expand our resource development capabilities in Africa,” adding, “We expect this project to enhance POSCO Group’s anode material competitiveness, stabilize the global battery material supply chain, and contribute to domestic mineral security.”

Black Rock Mining CEO John De Vries said, “This groundbreaking ceremony marks the Mahenge project’s entry into full-scale execution,” adding, “Close cooperation with POSCO INTERNATIONAL made this achievement possible. We will work together for successful commercial production.”

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.

Invested USD 40 million to acquire a larger stake in the Mahenge graphite mine in Tanzania

Signed a global sales rights agreement for industrial graphite for steel and cement to expand its business

Raised expectations for POSCO Group’s ‘completion of full value chain for secondary battery materials’

POSCO INTERNATIONAL is working diligently to complete the ‘construction of full value chain for secondary battery materials.’

On the 3rd, during the ‘45th Korea-Australia Economic Cooperation Committee Joint Meeting’ held at Crown Towers Perth in Australia, POSCO INTERNATIONAL (CEO Lee Kye-In) signed an investment agreement worth USD 40 million with the Australian mining company Black Rock Mining.

The signing ceremony was attended by Jeong In-Kyo, Trade Minister of the Ministry of Trade, Industry and Energy; Madeleine King, Australian Federal Resources Minister; Chang In-Hwa, POSCO Group Chairman; Lee Kye-In, POSCO INTERNATIONAL CEO; and Kim Jun-Hyung, head of POSCO Holdings’ secondary battery materials department.

Since Chang In-Hwa took over as chairman in March, POSCO Group has proactively developed strategies to build a ‘full value chain for secondary batteries,’ and is also adapting flexibly to market changes, aligning with the global trend of establishing a domestic secondary battery industry network.

Taking advantage of the chasm (temporary downturn in demand) in the electric vehicle (EV) market, the company is actively securing promising assets, such as lithium salt deposits and mines, while expanding its presence in the secondary battery materials sector, which is essential for a sustainable and eco-friendly future, thereby enhancing the overall value and sustainability of the group.

Thanks to the investment agreement made by POSCO INTERNATIONAL, POSCO Group has acquired a 19.9% stake in Black Rock Mining, the owner of the Mahenge mine in Tanzania. This move will secure early access to graphite from the mine and establish a robust supply chain while expanding its graphite business through global sales rights agreement for industrial graphite.

Black Rock Mining’s graphite reserves are estimated at around 6 million tons, making it the second-largest in the world. Last year, POSCO INTERNATIONAL already completed the first phase of development in collaboration with Black Rock Mining. Once first-phase production begins, the company expects to receive a total of 750,000 tons of graphite over 25 years, averaging 30,000 tons per year.

With the recent completion of the second-phase contract, the company will secure an additional 30,000 tons of graphite annually for up to 25 years. POSCO Group anticipates that this will enable them to produce anode materials (POSCO FUTURE M) that comply with the United States’ Inflation Reduction Act (IRA) and the European Union’s Critical Raw Materials Act (CRMA), while enhancing the global competitiveness of the domestic eco-friendly vehicle supply chain.

The company is also expected to expand its graphite business scope following the signing of a global sales rights agreement for industrial graphite, which is used in steel, cement, and auto parts. The industrial graphite produced from this mine is projected to meet the domestic demand in Korea, thereby significantly enhancing the country’s mineral resource security.

“We will continue to identify projects that enhance the global competitiveness of key national industries, such as steel and secondary battery materials,” POSCO Group Chairman Chang In-Hwa stated. “Additionally, we will actively utilize the group’s diverse industrial portfolio and global network to establish supply chains that also contribute to national security.”

Black Rock Mining plans to raise capital through this investment and begin construction on mine development within this year, aiming to commence full-scale commercial production by 2026.

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!

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!