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.

Tanzanian natural graphite to be used as anode material by POSCO Future M

H.E. Togolani Edriss Mavura, Tanzanian Ambassador to South Korea, visited POSCO Group’s facilities in Sejong and Gwangyang from May 13 for two days.

Tanzania is rich in natural graphite, a critical raw material for anodes in Rechargeable batteries. POSCO Group has invested in the Mahenge mine in Tanzania, the world’s second-largest graphite deposit by volume, securing a contract to supply 750,000 tons of natural graphite over 25 years. To ensure a stable supply of natural graphite and foster a strong relationship with Tanzania, POSCO Holdings invited Ambassador Mavura and his delegation.

▲H.E. Togolani Edriss Mavura, Tanzanian Ambassador to South Korea (second from left), taking a commemorative photo with Wook Choi, Head of Gwangyang Anode Material Division, at the POSCO Future M Gwangyang Anode Material Plant.

On May 13, Ambassador Mavura first visited the POSCO Future M Sejong Anode Material Plant, where Tanzanian natural graphite will be used. He toured the POSCO Future M Gwangyang Cathode Material Plant, POSCO HY Clean Metal, and POSCO Gwangyang works. After inspecting the facilities, Ambassador Mavura expressed his admiration for the scale of POSCO Group’s Rechargeable battery material business. He noted that Tanzania, which also has nickel and lithium mines, looks forward to expanding its collaboration with POSCO Group in the Rechargeable battery material sector. He added that Tanzania is rich in agricultural resources such as cashew nuts, coffee, and sugarcane, which opens up further opportunities for cooperation with POSCO Group’s diverse business units involved in food resources.

▲H.E. Togolani Edriss Mavura, Tanzanian Ambassador to South Korea, being briefed on business cooperation plans at the POSCO Future M Gwangyang Cathode Material Plant.

Visiting the Gwangyang works, Ambassador Mavura remarked, “I was amazed by Gwangyang works, the world’s largest steel plant. The automated processes that operate cleanly and safely were particularly impressive.”

Meanwhile, the South Korean government is pursuing an Economic Partnership Agreement (EPA) with Tanzania, the first agreement with an African nation. Ambassador Mavura, who was selected as one of the “100 Tanzanian Changemakers 2023” last year, is expected to play a crucial role in bridging cooperation between the governments of South Korea and Tanzania.

* EPA: A trade agreement with market-opening elements similar to a Free Trade Agreement (FTA) aimed at mutual prosperity and cooperation with partner countries.