In today’s global battery industry, success hinges on one critical factor: securing a stable and resilient supply chain that can withstand regulatory risks. As regulations in the United States and Europe emerge as major challenges for the industry, POSCO FUTURE M is turning those challenges into opportunities through its differentiated supply chain strategy. Following contracts worth KRW 670 billion to supply natural graphite anode materials to a global automaker, the company further demonstrated its competitiveness by signing a KRW 1 trillion long-term supply agreement for artificial graphite anode materials in March this year. These achievements are the result of years of effort to internalize the full value chain from raw materials and intermediates to finished products. We spoke with Yoo Seung-Jae, Head of the Anode Materials Research Center, about POSCO FUTURE M’s vision for an independent anode materials supply chain and the progress of its technology development.

PART 01

From Natural to Artificial Graphite: POSCO FUTURE M Advances Localization of Anode Materials

POSCO FUTURE M’s greatest strength lies in its differentiated portfolio, which enables the company to mass-produce and supply both natural graphite and artificial graphite anode materials in line with the rapidly evolving needs of the global battery market.

The anode of an EV battery is made by blending natural graphite and artificial graphite, and demand for artificial graphite anode materials has recently increased in response to the market shift toward higher performance and faster charging. Natural graphite anode materials, made from flake graphite mined from natural deposits, offer excellent energy storage capacity and cost competitiveness. Artificial graphite anode materials, produced through high-temperature heat treatment, provide superior structural stability, making them better suited for maximizing fast-charging performance.

By mass-producing both materials, POSCO FUTURE M can respond flexibly to changing market demand. In addition, the company is accelerating the commercialization of silicon anode materials for next-generation all-solid-state batteries and other advanced applications, further strengthening one of the industry’s most comprehensive portfolios. The company continues to demonstrate its global technological competitiveness, particularly by maximizing productivity through continuous process innovation.

These achievements are the result of long-term efforts to localize production. After successfully localizing natural graphite anode materials in 2011, POSCO FUTURE M completed its artificial graphite anode materials plant in Pohang in 2021, establishing an independent mass-production system. This localization and internalization of raw materials go beyond technological self-reliance and have become a distinct competitive advantage, enabling the company to offer customers one of the most stable supply chains in a global market increasingly exposed to geopolitical risks.

▲ In March, POSCO FUTURE M signed an MOU with Molten to jointly develop raw materials for natural graphite anode materials using methane gas.

POSCO FUTURE M is working with U.S.-based Molten* to develop natural graphite anode materials using raw materials that do not rely on mining. This initiative is meaningful because it moves beyond the conventional dependence on mined graphite and introduces a new approach to securing key raw materials by combining the two companies’ differentiated capabilities in raw materials and materials technology. Through this collaboration, the company expects to diversify its raw material supply chain, reduce costs, and strengthen its differentiated competitiveness in the global market.

* Molten: A California-based company with the world’s only technology capable of producing graphite through methane pyrolysis.

POSCO FUTURE M plans to reinforce its raw materials supply chain by combining Molten’s methane-based graphite production technology with its own anode materials manufacturing technology. Once Molten produces graphite through methane pyrolysis, POSCO FUTURE M’s subsidiary Future Graph will process it into spherical graphite, after which the Sejong plant will produce the final natural graphite anode materials.

Graphite produced from methane gas contains fewer metallic impurities than mined graphite, making it possible to significantly simplify the refining process. This could lead to substantial cost reductions in anode materials production. In addition, hydrogen generated as a byproduct during methane pyrolysis could be used for power generation or supplied to POSCO’s hydrogen reduction ironmaking process, creating synergies across POSCO Group.
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PART 02

Building an Independent “K-Anode Materials” Supply Chain Through POSCO Group Synergies

▲ Last year, POSCO International began developing the Mahenge graphite mine in Tanzania, the world’s second-largest graphite deposit by reserves.

Graphite is a key raw material for battery anode materials, but more than 90% of global supply is concentrated in one country, creating significant supply chain risk. As demand surges with the growth of the EV and ESS (Energy Storage System) markets, securing alternative supply sources has become essential. In response, POSCO Group has built a vertically integrated structure for its battery materials business by linking POSCO International’s raw material sourcing capabilities with POSCO FUTURE M’s materials production. Going forward, the Group plans to directly use graphite secured from Africa in anode materials production, thereby increasing raw material self-sufficiency and easing supply chain instability.

The greatest strength of POSCO Group’s battery materials business lies in its structure, which combines the Group’s raw material sourcing capabilities, cathode and anode materials technologies, and manufacturing process expertise. This enables the Group to provide global battery customers with both supply stability and competitiveness.

▲ POSCO FUTURE M is focusing on internalizing spheroidization and purification technologies for natural graphite anode materials. Source: POSCO FUTURE M

In particular, for natural graphite anode materials, dependence on a specific country is extremely high in the case of spherical graphite, an intermediate material produced by shaping mined graphite into round particles and increasing its purity. To respond to global supply chain regulations such as the U.S. Inflation Reduction Act (IRA), achieving technological self-reliance at this stage is essential.

To address this, POSCO FUTURE M is building a system in which graphite ore secured by POSCO Group in Africa and other regions is processed into spherical graphite at the Saemangeum plant of its subsidiary Future Graph and then sent to the Sejong plant, where it is turned into final natural graphite anode materials. Based on this localized supply chain, the company plans to supply products stably to global battery makers and automakers.

▲ In April, POSCO FUTURE M and Thai Nguyen Province held a preliminary event for the delivery of the Investment Registration Certificate (IRC) for the artificial graphite anode materials project in Vietnam.

Artificial graphite anode materials are essential for enabling fast charging and improving battery life, but dependence on a specific country remains high, making supply chain diversification an urgent priority. Vietnam offers outstanding cost competitiveness compared with other Southeast Asian countries thanks to lower investment costs, electricity rates, labor costs, and logistics expenses. It also has a stable power grid, strong industrial infrastructure, and favorable trade relations with key countries including the United States.

POSCO FUTURE M is investing approximately KRW 357 billion to build an artificial graphite anode materials plant in Thai Nguyen, an industrial city in northern Vietnam. Construction is scheduled to begin in the second half of this year, with mass production targeted for 2028. Depending on future orders, the site can be expanded in phases to reach a maximum annual capacity of 55,000 tons.

PART 03

From EVs to Emerging Industries: Next-Generation Silicon Anode Materials Technology

Silicon anode materials offer high capacity, making them well suited to extending EV driving range and shortening charging time. However, because silicon undergoes significant volume expansion during charging and discharging, it has traditionally been used in blends with graphite anode materials.

POSCO FUTURE M has successfully developed silicon anode materials with about five times the capacity of graphite-based anode materials while minimizing expansion through proprietary coating technology. Since May 2024, the company has been operating a demo plant to produce these materials and is currently in discussions with global customers regarding commercialization and the establishment of a mass-production system.

▲ A sample of POSCO Group’s silicon anode materials displayed at INTERBATTERY 2026.

Emerging industries such as humanoid robots, drones, and aerospace require batteries that minimize weight and volume while delivering high energy density and fast charging. Demand for silicon anode materials is expected to grow rapidly not only in robots and drones, where long operating time and fast charging are essential, but also in aerospace, where high output and reliability are critical. POSCO FUTURE M’s silicon anode materials offer greater capacity and better charging performance than conventional graphite-based materials, making them an ideal solution for applications with strict space and weight constraints.

▲ POSCO FUTURE M’s silicon anode materials demo plant in Pohang.

As Korea’s only producer of graphite-based anode materials, POSCO FUTURE M has successfully localized both natural graphite and artificial graphite anode materials and is now expanding its portfolio into next-generation materials such as silicon anode materials.

Based on 15 years of research, the company has developed a range of products applying proprietary technologies. Among them, its low-expansion natural graphite anode material improves material structure through a high-density spheroidization process, enhancing fast-charging performance while lowering the expansion rate and maintaining strong price competitiveness. Its uncoated low-temperature-calcined natural graphite anode material, meanwhile, helps suppress silicon expansion when blended with silicon anode materials, and demand for this product is expected to rise in line with the growth of the silicon anode materials market.

Building on these proprietary products and the competitiveness of its vertically integrated structure spanning raw materials, materials, and products, POSCO FUTURE M will continue to proactively respond to future battery requirements such as fast charging, high output, and high energy density. Through these efforts, the company aims to grow into a global top-tier anode materials solutions provider serving not only EVs but also emerging industries including robotics, drones, and aerospace.

Pohang plant production lines converted from high-nickel to LFP to meet customer demand… prototype certification underway, with mass production supply set to begin by the end of the year

Continuing supply negotiations with global battery makers and automakers based on supply chain and technological capabilities to address trade regulations

POSCO Future M officially launched its LFP cathode material business on the 6th, reaching a large-scale, long-term supply agreement with a major Korean battery maker for lithium iron phosphate (LFP) cathode materials.

The agreement, reached to preemptively address surging North American ESS demand, will see POSCO Future M supply more than 190,000 tons of LFP cathode materials to the battery maker over six years, from next year through 2032. The two companies plan to finalize the terms and sign a formal contract in the third quarter.

Leveraging POSCO group-level collaboration, the company plans to produce and supply LFP cathode materials with enhanced cost competitiveness by applying new processes that use steelmaking by-products, such as iron oxide, and lithium sourced from salt lakes in Argentina.

POSCO Future M is in the final stages of negotiating LFP cathode material supply contracts with other major customers and plans to expand production capacity in line with additional orders.

While LFP batteries have lower power output than ternary batteries such as NCM (nickel-cobalt-manganese) and NCA (nickel-cobalt-aluminum), they offer the advantages of lower cost and longer lifespan. With power demand surging recently due to the expansion of AI data centers, demand for LFP batteries for ESS applications is growing to ensure a stable power supply. LFP battery adoption is also increasing in the electric vehicle market, particularly for entry-level models.

To ensure the timely supply of LFP cathode materials to customers, POSCO Future M recently completed the conversion of portions of its high-nickel cathode material production lines at the Pohang plant into LFP cathode material production lines. The company is currently undergoing prototype certification with customers and plans to begin mass production supply by the end of this year.

The company is also continuing negotiations for cathode and anode material supply with global battery makers and automakers, leveraging its supply chain and technological capabilities to navigate trade regulations across various countries. In March, the company signed a large-scale, long-term supply contract worth approximately 1 trillion won with a global automaker for synthetic graphite anode materials, and is investing approximately 357 billion won to build a new synthetic graphite anode material plant in Vietnam to expand production capacity.

Separately, CNP New Material Technology — a joint venture between POSCO Future M and FINO-CNGR — began construction of an LFP cathode material plant at Pohang’s Yeongil Bay General Industrial Complex 4 in May, targeting mass production in 2027. The plant will expand production capacity in phases to a maximum of 50,000 tons.

▲ Aerial view of POSCO Future M’s Pohang cathode material plant located in Yeongil Bay Industrial Complex 4, Pohang. POSCO Future M is currently undergoing customer certification for prototypes after converting portions of its ternary high-nickel cathode material production lines in Pohang to LFP production lines.

Silicon nano-sizing technology and carbon composite technology substantially reduce volume expansion… overcoming the biggest barrier to commercialization

Targeting mass production and supply in 2028, taking into account market demand and evolving market conditions

POSCO Future M has secured mass-production technology for silicon anode materials and completed preparations to capture the next-generation battery market.

Silicon anode materials offer significantly higher energy density and faster charging rates than conventional graphite-based anode materials, and market demand is expected to expand rapidly, driven by high-performance, high-power batteries for applications such as electric vehicles (EVs) and robotics.

The silicon anode material developed by POSCO Future M can store more than four times the energy of graphite-based anode materials. Silicon anode materials are typically blended with graphite-based anode materials for use in batteries; in testing with a blending ratio of 20% or more, POSCO Future M’s material retained over 80% of its initial capacity after 1,000 charge/discharge cycles. This result notably surpasses the single-digit blending ratios of conventional batteries, demonstrating that the company has achieved not only high capacity but also long-term performance retention.

Volume expansion during charge/discharge cycles has long been identified as the primary challenge to the commercialization of silicon anode materials, despite their high energy storage capacity. The Technology Research Laboratory of POSCO Future M has addressed this challenge by applying proprietary silicon nano-sizing and carbon composite technologies to substantially reduce expansion, thereby securing a commercially viable solution.

“Silicon anode materials are a next-generation core material that will determine battery performance,” said HONG Young Jun  Head of the Technology Research Laboratory. “Building on our accumulated materials expertise and mass-production experience, we will deliver the best solutions to our customers while continuing to expand our competitive edge in the global market.”

POSCO Future M has secured silicon anode mass-production technology through product testing and quality verification with key domestic and international customers, and is targeting mass production and supply in 2028, taking a comprehensive view of overall market demand and evolving market conditions.

Demand is expected to gain momentum, particularly in the premium EV segment, in which extended driving range and reduced charging time are simultaneously required, with high potential for expansion into next-generation markets such as humanoid robots and urban air mobility (UAM). POSCO Future M continues to refine its technical capabilities through collaboration with Factorial, a US-based solid-state battery specialist, across both the cathode and silicon-anode material segments.

From now on, POSCO Future M plans to enhance competitiveness through advances in process technology and productivity improvements, and to build a stable supply infrastructure to meet the rapidly growing demand for silicon anode materials.

▲ POSCO Future M has secured mass-production technology for silicon anode materials — widely regarded as a next-generation core battery material — and completed preparations to capture the next-generation battery market. Pictured is the exterior of POSCO Future M’s silicon anode material demonstration plant, located in Pohang.

Senior Researcher Park Jae-bum POSCO Research Institute

The Hot Topic of Humanoid Robots! Why Are All-Solid-State Batteries Attracting Attention?

At ‘CES 2026’, held with great enthusiasm earlier this year, the most talked-about topic was humanoid robots. Immediately following the exhibition, interest in humanoid robots surged, leading to a significant rise in the stock prices of robot-related companies. Humanoid robots are designed to perform dangerous or complex tasks in place of humans in workplaces requiring high-intensity labor. Their potential for application across various fields, from daily life to industrial sites, is garnering significant attention.

▲ The ‘next-generation electric Atlas research model’ (left) and ‘next-generation electric Atlas open model’ (right) unveiled at CES 2026. Image source: Hyundai Motor Group]

Another hot topic alongside humanoid robots is the all-solid-state battery. An all-solid-state battery is a next-generation battery that replaces the liquid electrolyte, a core material of lithium-ion batteries, with a solid electrolyte. Thanks to the use of a solid electrolyte, it possesses high safety, and based on this, it allows for the improvement of other materials, enabling an increase in the battery’s energy density. In other words, it is one of the suitable battery candidates that meets the energy density and safety requirements demanded by humanoid robots.

Robots, especially humanoids, have limited space for battery installation. Unlike electric vehicles (EVs), it is difficult to mount a large amount of batteries, which limits battery capacity. Therefore, batteries with high energy density per weight and volume are essential for robots. Additionally, since robots must be able to lift heavy objects and perform quick movements instantaneously, high power output is also expected to be a critical factor in battery performance. While all-solid-state batteries are evaluated as capable of meeting these requirements in the future, they are still in the pre-commercialization stage and are currently very expensive.

However, when looking at the proportion of the battery in the total cost, there is a clear difference between EVs and robots. Unlike EVs, where the battery cost accounts for a relatively high portion, the price proportion of the battery in robots is relatively low. Therefore, even if an all-solid-state battery is installed, the price increase for the robot is smaller than that for an EV. For this reason, humanoid robots are being discussed as a promising initial application field once all-solid-state batteries are commercialized.

Between Expectation and Reality… Barriers That All-Solid-State Batteries Must Overcome

Despite these technical advantages and high market expectations, it is difficult for all-solid-state batteries to lead to immediate commercialization in the short term. Even setting aside the problems to be solved in the mass production process, the barrier of high cost still exists.

Assuming the commercialization price of a humanoid robot is $5,000 per unit, even if the battery is switched from a ternary NCM (nickel, cobalt, manganese) battery to an LFP battery, the price reduction for the robot is only about 1.9%. In other words, because robots use a small amount of batteries per unit, it is difficult to expect the same cost-saving effect as in EVs by using LFP. What if an all-solid-state battery is applied? It is estimated that the robot price would increase by about 14–17%, and the cost proportion of the battery would rise to the 20–24% level.

Although it varies depending on the characteristics and use of the robot, the industry considers a battery cost share of around 10% to be appropriate for humanoid robots. This is because, in addition to the battery—the heart of the humanoid—there are many other necessary parts and modules, such as actuators (joints), grippers (hands), and AI (the brain), making it difficult to allocate a large portion of the cost to the battery. Therefore, even assuming a maximum cost proportion of 15% considering the performance improvement of the robot due to the application of an all-solid-state battery, the price of all-solid-state batteries needs to drop to the $350/kWh level.

Key challenges for the commercialization of all-solid-state batteries

The main reason for the high price of all-solid-state batteries is the lack of a stable mass production system, but the high price of the core material, solid electrolyte, is also a major factor. The cost of the solid electrolyte material alone exceeds the price of a lithium-ion battery. This is because the price of lithium sulfide (Li₂S), the core raw material for solid electrolytes, remains high at about $500/kg, and because they are mainly manufactured in lab or pilot lines, the ‘economies of scale’ effect—where the average price decreases as production volume increases—has not yet occurred. For all-solid-state batteries to secure price competitiveness compared to lithium-ion batteries, the price of solid electrolytes appears to need to drop to the $30/kg level.

For commercialization, technical challenges remain in addition to price. While improving the safety of all-solid-state batteries is possible just by applying the core solid electrolyte material, improving other materials is also necessary to ultimately increase energy density. Furthermore, to improve peak output (lasting from a few seconds to tens of seconds), technical hurdles such as improving ionic conductivity and overcoming interface resistance must be resolved. Currently, major global companies are actively pursuing material-centered R&D to overcome these limitations.

Despite various issues, all-solid-state batteries are still considered a very suitable next-generation battery technology for robots. This is because they are not only safer than LFP batteries but also have significant room for improvement in energy density. This is expected to improve not only the robot’s operating time but also its peak output performance, which lasts from a few seconds to tens of seconds. Ultimately, whether the substantial improvement in robot performance—such as energy density, peak output, and safety—is clearly proven to offset the burden of increased costs due to the application of all-solid-state batteries will be the key criterion for judging future commercialization.

‘Dream Battery’ All-Solid-State Battery, Can It Accelerate the Timing of Commercialization?

All-solid-state batteries have long been called the ‘dream battery’ and have received high expectations in the secondary battery market, but they still face the challenge of securing mass-producibility and price competitiveness similar to that of lithium-ion batteries. Until now, suitable demand sources for all-solid-state batteries have been limited, but recently, the possibility that the market opening time could be advanced, defying previous expectations, has been raised.

① Before Electric Vehicles? The Potential for Robot Market Application

Among domestic battery manufacturers, Samsung SDI has presented a relatively concrete timeline for the mass production of all-solid-state batteries. The company is targeting 2027 for mass production and is reportedly reviewing the potential for application in various new fields, including robotics. If these plans materialize, all-solid-state batteries could be adopted in non-automotive sectors—such as robotics—before they are widely used in electric vehicles. In particular, because the sample testing and certification processes for robots are relatively more flexible than those for EVs, there is significant potential for the market landscape to shift rapidly.

② China’s Announcement of National Standards for All-Solid-State Batteries

Meanwhile, changes in the global policy environment are acting as a catalyst to accelerate the opening of the all-solid-state battery market. The Chinese government recently announced national standards for all-solid-state batteries, establishing clear terminology and a classification system. This is interpreted as a strategic move to secure market leadership, with a focus on next-generation applications such as robots and eVTOLs*. Major Chinese battery firms are accelerating development with a goal of commercialization around 2027; if coupled with government support, the initial cost burden is expected to be partially mitigated. These national standards and policy supports are significant, as they can accelerate market formation regardless of the current level of technical maturity. In response, Korea is also seeking policy measures, such as securing production bases for core materials and expanding R&D support for next-generation batteries.

*eVTOL (Electric Vertical Take-Off and Landing): An aircraft that uses electric power to hover, take off, and land vertically.

③ The Time Until Commercialization: The Importance of a ‘Pivot Strategy’

The price of all-solid-state batteries during the initial mass production and pilot stage in 2027 is estimated at $400–600/kWh, and a transition to full-scale commercial production is likely to occur only after 2030. However, it is expected that all-solid-state batteries will periodically emerge as a key market topic over the next three to four years, with the construction of material supply chains proceeding in parallel. In this rapidly changing environment, experts argue for the necessity of a ‘pivot strategy*.’ This means that rather than simply waiting for the all-solid-state battery market to open, companies must strengthen their existing lithium-ion battery competitiveness while simultaneously preparing to pivot quickly to all-solid-state technology as the market evolves.

*Pivot: A strategy of changing direction or focus while maintaining the existing core business.

POSCO Group Preparing for the Era of All-Solid-State Batteries

POSCO Group has been preemptively conducting research, development, and investment in core materials such as cathode materials for all-solid-state batteries, lithium-metal anodes, and solid electrolytes. To secure competitiveness in the solid electrolyte business, which is the core of all-solid-state batteries, POSCO Group invested a 40% stake in Jeong-Kwan Co., Ltd. in February 2022 to establish POSCO JK Solid Solution. The company is currently operating a pilot plant and is conducting sample tests for global battery companies and OEMs.

In addition, POSCO Group is accelerating the development of next-generation materials—such as solid electrolytes, high-capacity cathodes, and silicon anodes—through strategic partnerships and equity investments in industry leaders like Taiwan’s ProLogium and the U.S.-based Factorial Energy. Furthermore, the group is moving to internalize the production of lithium sulfide, a core raw material for sulfide-based solid electrolytes, to drive down costs and secure a more economical supply chain.

▲ Panoramic view of POSCO Future M’s Pohang cathode material plant.

Recently, POSCO Future M signed an MOU with Factorial, an all-solid-state battery company headquartered in Massachusetts, USA, for the development of all-solid-state battery technology. Through this cooperation, it is expected that POSCO Future M’s material technology and Factorial’s global partnership capabilities will be combined to secure competitiveness in the all-solid-state battery market.

As such, POSCO Group plans to continuously expand its portfolio of core materials for all-solid-state batteries, including cathode materials for all-solid-state batteries, silicon/lithium-metal anode materials, and sulfide-based solid electrolytes, centered on POSCO Future M, which possesses material design and coating technologies.

A combination of POSCO Future M’s anode material technology and Molten’s methane-based graphite production technology expected to strengthen the raw material supply chain and cost competitiveness

HONG Young Jun, Head of the POSCO Future M Technology Research Laboratory: “We will leverage the combined technological strengths of both companies to secure differentiated competitiveness in the global market”

POSCO Future M is embarking on the development of natural graphite anode material from non-mined raw materials, in collaboration with U.S.-based Molten.

On the 11th, POSCO Future M signed a memorandum of understanding (MOU) with Molten at COEX in Seoul for the joint development of natural graphite anode material feedstock using methane gas.

The signing ceremony was attended by HONG Young Jun, Head of the POSCO Future M Technology Research Laboratory; Kevin Bush, Chief Executive Officer (CEO) of Molten; Caleb Boyd, Chief Technology Officer (CTO) of Molten; and executives and employees from both organizations.

Through this agreement, POSCO Future M will combine its anode material technology with Molten’s methane-based graphite production technology to strengthen its anode material feedstock supply chain. Under the planned arrangement, Molten will produce graphite via methane pyrolysis, which POSCO Future M will then process into spherical graphite through its subsidiary FutureGraph before producing natural graphite anode material at its Sejong plant.

Graphite produced from methane gas contains lower levels of metallic impurities than mined graphite, reducing the number of purification steps required and yielding substantial cost savings in the production of natural graphite anode material. In addition, methane pyrolysis generates hydrogen as a co-product alongside graphite, which is expected to create synergies at the POSCO Group level, including potential use of the hydrogen for power generation or as a feedstock for POSCO’s hydrogen-based direct reduction steelmaking operations.

HONG Young Jun, Head of the POSCO Future M Technology Research Laboratory, said, “We have until now relied on graphite mined from conventional sources, but by combining the raw material and advanced materials expertise of both companies, we will secure key feedstock through an entirely new approach.” He added, “We expect this to give us a differentiated competitive edge in the global market through both supply chain diversification and cost reduction.”

Molten is the world’s only company capable of producing graphite via methane pyrolysis, and is headquartered in California.

Separately, POSCO Future M is working to vertically integrate its anode-material feedstock supply chain, drawing on the POSCO group’s broader capabilities. For natural graphite anode material, the company plans to establish a supply chain in which graphite ore is sourced from Africa and other regions through the POSCO group and processed into spherical graphite at its subsidiary FutureGraph. For artificial graphite anode material, coal-based and petroleum-based coke derived from coal tar generated in POSCO’s steelmaking process is used as the primary feedstock.

▲ POSCO Future M and Molten signed a memorandum of understanding at COEX in Seoul on the 11th to jointly develop natural graphite anode material feedstock using methane. Pictured from left: HONG Young Jun, Head of the POSCO Future M Technology Research Laboratory; Caleb Boyd, Chief Technology Officer (CTO) of Molten.

Carbon nanomaterial technology to be applied to suppress battery volumetric expansion during charge-discharge cycles, preventing structural deformation and significantly extending battery life

Young-jun Hong, Head of the POSCO Future M Research Institute: “The two companies have agreed to combine their world-class technology leadership to develop advanced battery materials”

POSCO Future M has signed a memorandum of understanding (MOU) with U.S.-based Sila for the joint development of advanced battery materials.

The two companies signed the MOU on the 11th at COEX in Seoul, in a ceremony attended by Young-jun Hong, Head of the POSCO Future M Research Institute, Gleb Yushin, Co-founder and Chief Technology Officer (CTO) of Sila, and executives and employees from both organizations.

Under the MOU, POSCO Future M plans to push advanced battery material technology further by combining the company’s cathode and anode material capabilities with Sila’s silicon anode material technology.

Silicon anode materials offers up to ten times the energy storage capacity of conventional graphite-based anode materials, enabling a significant increase in EV driving range while substantially reducing charging times. By leveraging carbon nanomaterial technology, the two companies expect to address one of the longstanding drawbacks of silicon anode material: the volumetric expansion that occurs during charge-discharge cycles. This approach is anticipated to prevent structural deformation and significantly extend battery life. The companies also agreed to explore the use of POSCO Future M’s carbon material technology to improve the cost competitiveness of silicon anode material, which currently commands a premium price.

Young-jun Hong, Head of the POSCO Future M Research Institute, said, “The two companies have agreed to combine their world-class technology leadership to develop advanced battery materials,” and added, “We will continue to extend the partnership beyond technology development to the supply chain level.”

Sila is a battery materials company headquartered in California that holds proprietary technology for high-performance silicon anode materials. The company works with major automakers and battery manufacturers to increase EV driving range and reduce charging times, and operates a silicon anode material production facility in Moses Lake, Washington.

Meanwhile, POSCO Future M is showcasing the research and development activities of its partner companies, including Sila and Factorial, a collaborator on all-solid-state battery technology, in the Open Innovation zone of its exhibition at InterBattery, which opened on the 11th.

▲POSCO Future M and Sila signed a memorandum of understanding at COEX in Seoul on the 11th, pledging collaboration in the field of advanced battery materials. Pictured from left: Young-jun Hong, Head of the POSCO Future M Research Institute; Gleb Yushin, Co-founder and Chief Technology Officer (CTO) of Sila.

New plant to be established in Vietnam to fulfill orders; phased capacity expansion planned for additional orders

Expanded production capacity and stronger cost competitiveness expected to drive further global order growth

On the 16th, POSCO Future M signed a large-scale, long-term supply agreement with a global automaker to supply artificial graphite anode material.

The contract, valued at approximately KRW 1.0149 trillion, covers five years from 2027 to 2032, with provisions for extension by mutual agreement. The customer’s identity has been withheld until the conclusion of the contract for reasons of business confidentiality.

This is the largest supply agreement POSCO Future M has secured since entering the anode material business in 2011. The company currently supplies anode material to domestic battery manufacturers and companies, including GM, and previously signed a natural graphite anode material supply agreement with a major Japanese battery manufacturer in July 2025, followed by another agreement with a global automaker in October 2025 valued at approximately KRW 670 billion.

Having secured consecutive major anode material orders, POSCO Future M has established a solid foundation for sustained business growth by broadening its customer base and improving profitability.

This agreement complements the natural graphite anode material contract signed in October of last year, and POSCO Future M plans to pursue further collaboration with the same customer, extending into the cathode material and lithium business segments.

To fulfill this order, POSCO Future M has embarked on a phased expansion of its anode material production capacity. On the 5th, the company approved an investment of approximately KRW 357 billion to build a new plant for artificial graphite anode material in Vietnam. With this supply agreement, the company has secured the customer commitment underpinning its Phase 1 investment and plans to proceed with a Phase 2 investment to accommodate additional order volumes.

Building on its Vietnam investment, POSCO Future M is expected to expand its mass-production base to supply cost- and quality-competitive products to customers and continue growing its global order book.

This contract win is a testament to POSCO Future M’s supply chain solutions and technological capabilities, which are fully equipped to navigate trade regulations across major markets — achieved at a time when securing a stable anode material supply chain has become a growing priority for the EV and energy storage system (ESS) industries.

As Korea’s only graphite-based anode material producer, POSCO Future M has been at the forefront of supply chain stabilization for the domestic battery industry, beginning with the localization of natural graphite anode material in 2011 and the completion of its artificial graphite anode material plant in Pohang in 2021, thereby establishing a full-scale mass production system.

The company has also been working toward full vertical integration of its supply chain, spanning raw materials, intermediate inputs, and finished product manufacturing. For artificial graphite anode material, coal-based and petroleum-based coke derived from coal tar generated in POSCO’s steelmaking process serves as the primary feedstock. For natural graphite anode material, the company plans to establish a supply chain in which graphite ore is imported from Africa and other regions through the POSCO Group, with intermediate processing to be carried out at a spherical graphite plant currently being developed at Saemangeum.

POSCO Future M produces both natural and artificial graphite anode materials at scale, tailored to customer requirements, and has built a broad product portfolio by advancing the commercialization of silicon anode material for use in all-solid-state batteries and other next-generation applications. The company has earned broad recognition for its technological strengths through continuous process innovation aimed at improving productivity.

Leveraging these supply chain solutions and technological capabilities, POSCO Future M is currently in supply discussions with numerous customers in Korea, North America, and the EU for both cathode and anode materials. The company 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

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

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.

Synergistic Benefits Expected from POSCO Future M’s Materials Technology and Factorial’s Network of Automakers in Korea, Europe, and North America

Explosive Growth in All-Solid-State Battery Applications Expected in Next-Generation Mobility as well as Physical AI Markets, including Humanoids

POSCO Future M is investing in Factorial, a US-based all-solid-state battery company, to lead the future battery market.

POSCO Future M signed an investment agreement with Factorial Inc. on January 7th and completed the investment payment on 26th. This further strengthens their partnership, following the MOU signed by the two companies in November of last year for the development of all-solid-state battery technology.

Through this investment, POSCO Future M plans to prepare for the explosive growth of the all-solid-state battery market, while Factorial will secure a stable supply of high-quality all-solid-state battery materials and strengthen its battery manufacturing competitiveness.

Hong Young-Jun, Head of Technology Research Laboratory, stated, “Both companies have developed materials technology through a close and continuous partnership. This further developed partnership will enable us to secure unrivaled competitiveness in line with the rapidly growing all-solid-state battery market.”

Factorial, a leader in the all-solid-state battery industry headquartered in Massachusetts, is pursuing an IPO on the US stock market. In Korea, it operates a pilot plant for all-solid-state batteries in Cheonan, South Chungcheong Province, and is actively expanding its business.

Factorial’s all-solid-state battery platform, Solstice, is known for its superior energy density and safety. Based on this leading technology, it has established partnerships with major automakers in Korea, Europe, and North America. The combination of Factorial’s network competitiveness and POSCO Future M’s materials technology is expected to generate synergy in the future partnership between the two companies.

All-solid-state batteries, which utilize solid electrolytes instead of conventional liquid electrolytes, offer superior energy density and safety, drawing attention as a game changer in the battery market. POSCO Future M has been conducting sample testing of all-solid-state battery cathode materials with Factorial, and among many materials suppliers, POSCO Future M’s materials have been evaluated as superior in terms of quality, including output characteristics.

The all-solid-state battery materials currently being developed by POSCO Future M are expected to find significant applications in next-generation mobility, such as autonomous electric vehicles and urban air mobility (UAM), as well as in physical AI markets, such as humanoids and robotics.

According to global market research firm Statista, the physical AI market is projected to grow from $5 billion (approximately 7 trillion won) in 2020 to $64.3 billion (approximately 94 trillion won) in 2030, at a compound annual growth rate of 23.3%. Morgan Stanley projects the global humanoid market to reach $5 trillion (approximately 7,000 trillion won) by 2050, exceeding the semiconductor market by six times by 2025.

POSCO Future M possesses material design and coating technologies optimized for all-solid-state batteries. As part of the POSCO Group, the company is continuously expanding its portfolio of all-solid-state battery materials, including sulfide-based solid electrolytes and silicon and lithium metal anode materials with superior energy storage capacity.

▲ An employee at POSCO Future M’s Technology Research Laboratory in Sejong operates pilot equipment for cathode material trial production.

▲ Aerial view of POSCO Future M’s Pohang cathode material plant

Accelerating business development with the completion of the joint venture agreement following last week’s board approval

POSCO Future M is accelerating its LFP cathode material business to meet rapidly growing demand in the ESS market for mid- to low-cost battery materials.

POSCO Future M has signed a joint venture agreement (JVA) with CNGR and FINO, CNGR’s Korean subsidiary, for lithium iron phosphate (LFP) cathode materials. The signing ceremony, held on the 23rd at FINO’s headquarters in Anyang, Gyeonggi-do Province, was attended by Tae-il Yoon, Head of POSCO Future M’s Energy Materials Marketing Division, Liu Xingguo, Vice President of CNGR, Zhu Zongyuan, Vice President of CNGR, Dong-hwan Kim, CEO of FINO, and Dai Zhufu, CEO of CNP New Material Technology.

POSCO Future M established CNP New Material Technology in 2024 as a joint venture with CNGR and FINO to strengthen collaboration in the secondary battery materials business with CNGR and has continued discussions since then. Following board approval of the proposal on the 15th to build an LFP cathode material plant through this joint venture, the company completed the contract signing on the 23rd, accelerating its LFP cathode material business.

With the joint venture agreement in place, POSCO Future M will proceed with the construction of an LFP cathode material plant at Pohang’s Yeongil Bay General Industrial Complex 4. The company aims to break ground in 2026 and begin mass production in 2027, with plans to expand its annual capacity to a maximum of 50,000 tons starting with this investment.

While LFP batteries have lower output than ternary batteries, their cost and lifespan advantages have driven increased adoption across various applications, including ESS and entry-level electric vehicles. This agreement enables POSCO Future M to fully launch its LFP cathode material business to respond to rapidly growing market demand and to strengthen collaboration with CNGR and FINO across all business areas, including production, technology, and marketing.

Separately from this agreement, POSCO Future M plans to convert portions of its existing high-nickel product production lines at the Pohang cathode material plant into LFP cathode material production lines to secure early entry into the LFP market, with supply beginning in the second half of 2026.

▲POSCO Future M signed a joint venture agreement (JVA) with CNGR and FINO for LFP cathode materials on the 23rd. (From left: Dong-hwan Kim, CEO of FINO; Tae-il Yoon, Head of POSCO Future M’s Energy Materials Marketing Division; Zhu Zongyuan, Vice President of CNGR; Dai Zhufu, CEO of CNP New Material Technology)