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.

Jeong-hu Hong, Lead Researcher Today, secondary battery materials are drawing attention as key drivers of future industries such as electric vehicles and energy storage systems. Among them, cathode materials are especially important, accounting for more than 35% of the total cost of the four major battery components—cathode, anode, electrolyte, and separator. This is because cathode materials determine not only a battery’s capacity and output but also its ability to store and release electrical energy.
At the Cathode Material Development Group, POSCO Future M Technology Research Institute, we conduct research on cathode materials, the core of EV batteries, and develop new technologies to bring them into commercial use.

Do-hyeop Park, Principal Researcher Cathode materials can be simply defined as a “source of lithium.” They are produced by combining lithium with precursors made of various metals such as cobalt, manganese, and nickel. The battery’s name, performance, and stability all depend on which metals are used. Batteries such as Lithium Cobalt Oxide (LCO), Nickel Cobalt Manganese (NCM), Lithium Iron Phosphate (LFP), and Lithium Manganese Rich (LMR), among many others using different metal combinations, are currently being developed. Our team, in particular, focuses on the development of LMR cathode materials. Recently, General Motors (GM) and Ford announced plans to launch electric vehicles using LMR batteries in 2028 and 2030, respectively, drawing significant attention to LMR in the global automotive market. Our team is fully committed to advancing LMR batteries, which are poised to become game-changers in the electric vehicle industry.

Gwang-eun Jeong, Principal Researcher Among the lithium-ion batteries currently used in electric vehicles, LFP batteries are the most widely adopted. These batteries are predominantly developed technologically by China. While these are highly stable and cost-effective, their energy density is somewhat limited. For instance, at -10°C, their performance drops to only 60–70% of full capacity. To overcome these limitations, a newly developed LMR battery has been introduced. LMR batteries significantly reduce the use of costly cobalt and nickel, while increasing the proportion of more affordable manganese. With higher energy density than LFP, they enable greater battery capacity and performance, significantly extending the driving range of electric vehicles. Moreover, unlike LFP batteries, which are difficult to recycle, LMR batteries offer superior recyclability and high lithium recovery rates.

Jeong-hu Hong, Lead Researcher The LMR battery demonstrates outstanding competitiveness not only in terms of cost and performance but also in sustainability. Of course, despite its many advantages, there are challenges that must be addressed before mass production can be realized. To prevent performance degradation, various technological advancements are required, including maintaining stable average voltages and developing surface coating techniques for cathode materials to suppress unnecessary gas generation. In China, a large-scale LFP mass production system is already in place, making a swift transition to LMR production challenging. As a result, innovative research and development are even more crucial. Our team, after an intricate R&D process, has successfully completed the development of LMR cathode materials and is now focusing on establishing techniques for mass production.

Do-hyeop Park, Principal Researcher We divided the R&D process into laboratory and pilot production stages. In the laboratory stage, we rapidly and accurately explored the basic characteristics and optimal combinations of cathode materials under specific process conditions. Through creativity and experimentation, we successfully identified the best material combinations, reducing costs while enhancing the performance of LMR cathode materials.

Ju-hyeon Yang, Principal Researcher As Do-hyeop Park mentioned, cathode production involves a calcination process, where various metal precursors such as nickel, cobalt, manganese, and aluminum are combined with lithium sources at high temperatures. During this process, we selected a variety of precursor candidates, evaluated their key physical properties, and identified the most promising materials for experimental application. By applying accumulated technical knowledge and analyzing the effects of variables throughout the development process, we successfully optimized LMR cathode materials, evaluating their initial battery capacities and lifespans. Through continuous refinement of material design, process conditions, and experimental testing, we were also able to assess the feasibility of mass production.

Jin-eun Kim, Principal Researcher This is not the end. Even if promising results are achieved in the laboratory, the performance of the developed cathode material may not be fully realized under conditions similar to those of mass production. Therefore, during the pilot stage, we adjusted loading amounts, production volumes, and sintering furnace conditions on lines that closely resemble actual mass production, repeatedly experimenting to identify the optimal production conditions.

Ji-su Kim, Principal Researcher In the laboratory stage, cathode materials can be sintered in quantities of 100 to 200 grams; however, customers occasionally request samples ranging from kilograms to tons. This means that during the pilot stage, cathode materials must be produced stably at the same performance level as those from the laboratory to allow customers to properly verify mass production feasibility. From our perspective, securing the optimal conditions for cathode material production made this stage particularly important.

Jeong-hu Hong, Lead Researcher Together with our team members, we conducted full-scale R&D to enhance the safety of the LMR process. Pilot lines require meticulous adjustment of conditions, as even slight process changes can significantly impact cathode performance. By repeatedly verifying various conditions and applying laboratory-designed firing processes to actual equipment, we achieved stable pilot production of cathodes with performance comparable to that secured in the laboratory, passing customer evaluations and finalizing the technology. Thanks to this work, we were able to secure optimal pre-mass production conditions and improve economic efficiency.

Gwang-eun Jeong, Principal Researcher I remember being quite flustered when we received a request from a customer to deliver pilot samples within just ten days. We had to simultaneously respond to the customer and optimize the material. In that situation, I decided to stay calm and divide roles among the team: I communicated with the customer to gather requirements, while Do-hyeop Park focused on optimizing experimental conditions. Thanks to everyone diligently working in their respective roles, we successfully met the customer’s requested delivery date and ensured proper material quality.

Do-hyeop Park, Principal Researcher At that time, with very little time remaining until the pilot sample delivery, it was challenging not only to produce samples but also to refine the material simultaneously. That’s when Gwang-eun Jeong, our team’s “maestro,” who perfectly coordinates our efforts, efficiently allocated roles. Thanks to this, we managed to produce the samples on time without any issues. It would have been impossible to accomplish this alone.

Jin-eun Kim, Principal Researcher There were moments during the pilot phase when performance fell short of expectations. Although the goals had been achieved in the lab, results in the pilot phase differed significantly, which was perplexing. We then collaborated to meticulously review each process step by step to identify the cause. By theoretically analyzing with Jeong-hu Hong and conducting repeated experiments with adjusted mixing times and sequences, we observed remarkable improvements in performance!

Jeong-hu Hong, Lead Researcher Currently, the global battery market’s core materials and component supply chains remain heavily concentrated in China, making the establishment of independent supply chains a critical task. Our foremost goal is to successfully commercialize LMR batteries with a stable supply chain and robust technical expertise. Moving forward, we plan to actively pursue research and development to create better batteries across multiple aspects, including enhancing material stability, securing cost competitiveness, and improving charge/discharge performance. To achieve this, I will collaborate closely with relevant departments such as production, quality, and sales. Ultimately, our team aims to join forces to successfully mass-produce LMR, a next-generation battery material, and become a future growth engine for the POSCO Group!

Achieved a self-sufficient system spanning ‘raw materials, semi-finished products, and cathode materials’ amid global policy changes

Secured POSCO Group’s supply chain for high-purity nickel sulfate, a key precursor raw material, following lithium

POSCO Future M has completed its Gwangyang precursor plant with an annual production capacity of 45,000 tons.

Through this achievement, the company has secured the in-house capability to produce precursors, a key raw materials for cathode materials, thereby strengthening its supply chain competitiveness.

POSCO Future M held the completion ceremony for its precursor plant at the Yulchon Industrial Complex in Gwangyang, Jeollanam-do Province, on the 10th.

The event was attended by approximately 70 officials, including POSCO Future M President Gi-chen Eom, POSCO Holdings Business Synergy Division Head Seong-rae Cheon, Gwangyang Mayor In-hwa Jeong, Gwangyang City Council Chairman Dae-won Choi, and Gwangyang Bay Area Free Economic Zone Authority Commissioner Chung-gon Koo.

In his commemorative address, POSCO Future M President Gi-chen Eom stated, “Following the establishment of POSCO Group’s nickel supply chain, the completion of this precursor plant has achieved a self-sufficient system spanning ‘raw materials, semi-finished products, and cathode materials.’ Amid global supply chain policy fluctuations, the Gwangyang precursor plant will contribute to strengthening the competitiveness and growth of Korea’s battery industry.”

POSCO Future M’s Gwangyang precursor plant was constructed on a total area of 22,400㎡ (approximately 6,800 pyeong) within the existing Gwangyang cathode material plant site, with an annual production capacity of 45,000 tons of precursors. This represents sufficient volume to manufacture batteries for 500,000 electric vehicles. All precursors produced here will be used for cathode material manufacturing for Ultium Cells.

A precursor is a general term for the stage before a substance becomes the desired structure; in the battery industry, it refers to the material stage before becoming cathode material. Precursors consist of nickel (Ni), cobalt (Co), manganese (Mn), and other elements, and are sent to cathode material plants where they combine with lithium (Li) to become cathode materials.

With this plant completion, POSCO Future M can now directly produce large quantities of precursors, enabling more rigorous cathode material quality control. Precursors are considered a critical factor determining cathode material performance, as their characteristics change according to raw material composition and production methods, with impurity management being crucial.

Through precursor self-sufficiency, POSCO Future M has strengthened its supply chain competitiveness even amid global policy changes. According to energy market research firm SNE Research, Korea’s dependence on Chinese imports for precursors exceeded 90% as of March this year. Using Chinese precursors means that batteries sold in the U.S. market starting this year are subject to Foreign Entity of Concern (FEOC) regulations and cannot receive IRA tax credits. While recent U.S. House tax reduction bill initiatives have created significant policy uncertainty regarding IRA tax credits, regulations on Chinese supply chains are strengthening with the addition of prohibited foreign entity requirements, making precursor supply chain independence essential.

In this context, POSCO Future M has further enhanced its supply chain competitiveness by receiving nickel, a key precursor raw material, from within the POSCO Group. Specifically, POSCO processes non-Chinese nickel raw materials into high-purity nickel sulfate, supplying it to POSCO Future M’s precursor plant. Additionally, POSCO HY Clean Metal supplies nickel sulfate recovered through recycling to POSCO Future M.

Previously, the POSCO Group achieved independence in its lithium supply chain. POSCO Future M is expected to gain advantages over competitors through stable lithium supply from POSCO Pilbara Lithium Solution using Australian ore, POSCO Lithium Solution utilizing Argentine brine, and POSCO HY Clean Metal extracting raw materials from waste batteries.

Meanwhile, POSCO Future M is actively pursuing regional job creation through expanded investment in Gwangyang. The company operates both its Gwangyang cathode material plant and precursor plant, employing approximately 700 employees. Construction is also underway on a dedicated high-nickel NCA single-crystal cathode material plant with an annual capacity of 52,500 tons on nearby land, contributing to employment creation in the local construction industry, with additional hiring planned for plant operation personnel after completion.

In the future, POSCO Future M plans to accelerate its leap toward becoming a global top-tier secondary battery materials company by further strengthening its supply chain competitiveness in response to market changes and customer demands, while concentrating its capabilities on research and development and product portfolio expansion.

▲Ceremony participants lighting a sphere representing precursors at the POSCO Future M Gwangyang precursor plant completion ceremony (from fourth from left: Gwangyang Mayor In-hwa Jeong, POSCO Future M President Gi-chen Eom, POSCO Holdings Business Synergy Division Head Seong-rae Cheon, POSCO Future M Labor-Management Council Representative Young-hwa Kim).

▲POSCO Future M President Gi-chen Eom delivering his commemorative address at the Gwangyang precursor plant completion ceremony.

Aiming to strengthen future competitiveness of the rechargeable battery material business and prepare for growth after crossing the chasm — backing production expansion and financial stability of subsidiaries

Chairman In-hwa Chang personally inspected the global rechargeable battery material production site Ultium CAM in Canada — expressing expectations for its operational readiness to serve as a bridgehead for the North American market

POSCO Holdings has decided to invest a total of KRW 922.6 billion in a capital increase for its rechargeable battery material subsidiaries to strengthen their competitiveness and reinforce responsible management over the group’s core businesses.

On May 13, POSCO Holdings convened a board meeting and approved participation in capital increases by its rechargeable battery material subsidiaries: POSCO Future M, POSCO Pilbara Lithium Solution, and POSCO GS Eco Materials, with investments of KRW 525.6 billion, KRW 328 billion, and KRW 69 billion, respectively.

In preparation for full-scale market growth after the EV market chasm, POSCO Holdings aims to finalize major investment projects throughout its subsidiaries, secure future competitiveness in the rechargeable battery material sector with improved financial structures, and strengthen the responsible management of its core businesses by participating in these capital increases.

POSCO Holdings will invest KRW 525.6 billion in POSCO Future M’s capital increase and acquire 100% of the new shares allocated in proportion to its 59.7% stake. On the morning of May 13, POSCO Future M held a board meeting ahead of POSCO Holdings and approved a shareholder-allotted capital increase worth KRW 1.1 trillion to secure future growth drivers.

POSCO Future M intends to use the proceeds from the capital increase to complete ongoing investments to expand production capacity for anode and cathode materials, including a joint cathode material plant in Canada and the expansion of cathode material plants in Pohang and Gwangyang. These efforts are designed to increase the company’s manufacturing competitiveness in rechargeable battery materials.

POSCO Holdings is also injecting capital into POSCO Pilbara Lithium Solution and POSCO GS Eco Materials to establish a foundation for sustainable growth in the lithium and recycling businesses. With this capital increase, the company expects to improve the financial structure of the subsidiaries and support their stable operations.

POSCO Pilbara Lithium Solution is a joint venture between POSCO Holdings and Pilbara Minerals, with ownership stakes of 82% and 18%, respectively. The company imports lithium ore from Australia and produces lithium hydroxide in Korea for use in rechargeable battery materials.

POSCO GS Eco Materials is the holding company of POSCO HY Clean Metal, a rechargeable battery recycling firm. POSCO Holdings and GS Energy hold 51% and 49% ownership stakes, respectively.

Before this decision, POSCO Group Chairman In-hwa Chang personally visited the construction site of Ultium CAM, a joint cathode material production venture between POSCO Future M and GM in Quebec, Canada, on April 29 (local time), to review the status of the company’s global rechargeable battery material business firsthand.

Chairman Chang conducted a thorough on-site inspection, reviewing progress in all areas including production, maintenance, and quality, as well as the living conditions of local employees. He said, “Please ensure strict management of the construction schedule and full operational readiness amid rapidly changing global dynamics,” and added, “We expect this facility to serve as a foothold for entering the North American market just as the rechargeable battery material industry begins to rebound.” He particularly emphasized efficient operations across construction, raw material sourcing, and logistics through glocalization, and highlighted the use of AI to drive innovation in productivity.

Since the appointment of Chairman Chang, POSCO Group has restructured its business portfolio around the “2 Core + New Engine” strategy, focusing the group’s resources and capabilities on steel, rechargeable battery materials, and new businesses. In the rechargeable battery materials business, POSCO plans to use the EV market chasm as a strategic opportunity to enhance competitiveness by achieving early stabilization of new production facilities at home and abroad and expanding product certifications from customers to secure a stable revenue base. In parallel, POSCO is also focusing its efforts on securing high-quality resources, including lithium brine reserves in North and South America and lithium ore mines in Australia.

▲POSCO Group Chairman In-hwa Chang inspects the site of Ultium CAM, a joint cathode material production venture between POSCO Future M and GM in Canada, on April 29 (local time).

As competition to develop all-solid-state battery technology has become more intense worldwide, POSCO Group is also actively researching and developing raw and key materials for all-solid-state batteries. POSCO N.EX.T Hub is where R&D is carried out. So! Announcer Hyun-jung Choi went to POSCO N.EX.T Hub Senior researcher Oh-min Kwon, an expert in all-solid-state batteries, and talked about all-solid-state batteries, which become more fascinating as you learn more about them. Anyone curious about the all-solid-state battery core material business that the POSCO Group is preparing should pay close attention. It starts right now!

What is the difference between all-solid-state batteries and lithium-ion batteries?

Do you know what type of rechargeable battery is most commonly used in electric vehicles today? It is a lithium-ion battery. Among the components of lithium-ion batteries, the electrolyte, which helps lithium ions move smoothly between the cathode and anode, is made of liquid. Since the liquid electrolyte contains a flammable organic solvent, there is a high risk of fire or explosion in high-temperature environments or external impact situations.

The separator acts as a shield that prevents direct contact between the cathode and anode, and the lithium-ion battery separators are made of polymer, which is the main material of vinyl bags that we see everywhere in our daily lives. Just as vinyl bags shrink and disappear when heated, the lithium-ion battery separator can also be damaged when heated, and it causes a short circuit* between the cathode and anode.

*Short circuit: A phenomenon in which two points in an electric circuit are connected due to poor insulation between the two points

All-solid-state batteries replace the liquid electrolytes used in conventional lithium-ion batteries with a solid electrolyte. Unlike the polymer separator of a lithium-ion battery, which is made of polymer with low rigidity, the solid separator is made of ceramics with high rigidity. Moreover, it is non-volatile and has a high flash point, so it maintains its shape well even when heated, which keeps it safe from fire.

Improved safety simplifies the heat management system, such as the external case or cooling device in the battery, so it features higher energy density in the battery pack unit. Improved energy density can significantly increase the range of electric vehicles driving on a single charge. In addition, it makes it possible to use materials such as lithium metal anodes, silicon anodes, and silver/carbon nanocomposite anodes, which were previously unusable due to high risk in lithium-ion batteries. The energy density is expected to increase by nearly 10 times compared to existing graphite anode materials. That explains why all-solid-state batteries have become the next-generation batteries for the transition from internal combustion engine vehicles to electric vehicles.

For those who cannot understand by explanation alone, Senior researcher Kwon brought all-solid-state battery samples produced by the POSCO Group and conducted a performance test. First, before we see the results! Let’s look at the specifications of POSCO Group’s all-solid-state batteries more closely.

Specifications of POSCO Group’s all-solid-state batteries

He connected the cathode and anode to a battery that looked like a thin piece of paper at first glance, made it light up, and then cut the surface of the battery with scissors. Will the light still be on even if it is cut?

Like magic, the light does not go out even when the battery is cut in half. The secret behind this is that the solid electrolyte of the all-solid-state battery, with high rigidity, acts as a separator and remains intact even with external shocks. If the inside of the battery was filled with a liquid electrolyte, the separator would have been damaged and caused the electrolyte to leak and be oxidized, and the battery would eventually stop functioning properly. That is why everyone recognizes all-solid-state batteries to be the next-generation battery leader.

So, what are the types of solid electrolytes for all-solid-state batteries? The solid electrolytes used in all-solid-state batteries are divided into three types: sulfide, polymer, and oxide. Sulfide solid electrolytes have the highest potential for commercialization in electric vehicles since their relatively soft characteristics form a wide interface between the electrode and electrolyte, resulting in high lithium-ion conductivity. Therefore, it has gained the attention of many companies worldwide.

Three key raw materials are needed to make a solid electrolyte: lithium sulfide, phosphorus pentasulfide, and lithium chloride. These three raw materials are mixed evenly to form an argyrodite (a rare mineral of silver, germanium, and sulfur) by synthesis. What is important is for the synthesis to form the appropriate solid electrolyte particle size. The solid electrolyte is completed by controlling the particle size through the crushing* and disintegration** processes.

*Crushing: The process of breaking a solid object into small pieces
**Disintegration: The process of separating clumped particles into the original individual particles

Status of POSCO Group’s all-solid-state battery material business

Did you know that POSCO Group is focusing its business on sulfide solid electrolytes to take a leading position in the all-solid-state battery market? POSCO Holdings is developing high-ion conductive materials and technology to form moisture-stable solid electrolytes. The internal testing of the prototype showed that it can achieve a battery performance equivalent to that of lithium-ion batteries.

In February 2022, it acquired a 40% equity share of Jeongkwan Co., Ltd., a display material and part specialist, to establish a joint venture called POSCO JK Solid Solutions, and completed the construction of a factor capable to producing 24 tons of sulfide-based solid electrolyte per year. The plant recently applied a new process technology and is preparing a phased expansion of the production capacity to 7,200 tons. It is currently conducting an all-solid-state battery test with various customers.

▲POSCO Group’s lithium production demonstration plant and brine storage facility in Argentina.

POSCO Group is the only Korean company that produces lithium brine, ore, hydroxide, and carbonate. Moreover, POSCO Group is actively researching and developing high-value-added lithium compounds. Since lithium compounds such as lithium sulfide and lithium chloride are essential to produce solid electrolytes, POSCO Group, which has lithium production infrastructure, is considered to have considerable competitiveness in the sulfide-based electrolyte business.

All-solid-state batteries will overcome the limitations of lithium-ion batteries, and solid electrolyte is their key material. In addition to solid electrolytes, POSCO Group also has the competitiveness to mass-produce lithium metal anode materials, which are important materials for all-solid-state batteries. With our differentiated competitiveness, we plan to leap forward as an innovative company in the rapidly changing rechargeable battery material market. If you want to know more, please watch the full version of the video on YouTube.

▼Check out POSCO Group’s solid electrolyte technology competitiveness in the video!

Planning to Establish a Lithium Production Plant with an Annual Capacity of 30,000 Tons… Evaluating Optimal Plant Sites Including Korea

Diversifying Lithium Sources Following Argentina’s Brine Lithium and Australia’s Pilbara Minerals’ Ore Lithium

POSCO Holdings has joined forces with Hancock Prospecting, an Australian mining company, to strengthen the supply chain for lithium used in Rechargeable battery materials.

▲POSCO Holdings and Australian mining company Hancock Prospecting signed a business agreement on lithium cooperation via a video conference connecting Korea and Australia. From left: POSCO Holdings’ Jun-hyung Kim, Head of Rechargeable Battery Materials; Hancock’s Daniel Wade, Business Development Manager; Hancock’s CEO Garry Korte; and POSCO Holdings’ Lee Seong-won, Head of Lithium Business Team.

On December 9, POSCO Holdings and Hancock Prospecting formalized their collaboration by signing a business agreement on lithium cooperation. The signing ceremony was conducted via video conference between Korea and Australia, with attendance from POSCO Holdings’ Jun-hyung Kim, Head of Rechargeable Battery Materials (Senior Executive Vice President), and Garry Korte, CEO of Hancock Prospecting, among other senior executives from both companies.

Under the agreement, POSCO Holdings and Hancock Prospecting will pursue a lithium business venture with an annual production capacity of 30,000 tons. The two companies will jointly evaluate optimal sites for establishing the lithium production plant, considering multiple countries, including Korea. Subsequent stages will specify detailed aspects such as investment amounts.

Through this collaboration, POSCO Holdings aims to secure an additional stable supply chain for lithium raw materials, free from regulations imposed by the Foreign Executive Order Committee (FEOC) of the United States, by leveraging Hancock’s diverse mining assets. Additionally, POSCO Holdings will enhance its lithium value chain—from lithium mining and brine extraction to lithium hydroxide production, cathode materials, and recycling—strengthening the group’s overall lithium infrastructure.

Jun-hyung Kim, Head of Rechargeable Battery Materials, stated, “POSCO Holdings has built a long-standing partnership with Hancock Prospecting based on mutual trust. In this lithium business collaboration, we will explore the optimal business framework and achieve successful outcomes.”

Hancock Prospecting, headquartered in Perth, Western Australia, specializes in mining and primarily generates revenue from iron ore operations. The company is diversifying its business into lithium, natural gas, and rare earth elements. Since 2010, POSCO Group has expanded its collaboration with Hancock Prospecting, starting with a 12.5% investment in Hancock’s Roy Hill iron ore mine. In 2022, POSCO International and Hancock jointly acquired Senex Energy, an Australian natural gas company, further broadening the scope of their partnership across the POSCO Group.

POSCO Holdings is leveraging the opportunity presented by the Rechargeable battery market’s stagnant growth to secure premium lithium resources from mines and brine sources actively. This strategic move aims to expand the resource supply chain and enhance business capabilities to capture a leading position in the lithium market as conditions improve. As of 2024, POSCO Holdings has secured a lithium production capacity of 68,000 tons annually, with the completion of facilities producing 25,000 tons of brine lithium in Argentina and 43,000 tons of ore lithium.

Prime Minister Duck-soo Han said, “This marks a pivotal turning point for POSCO Group as it strides toward becoming a global leader in the lithium industry. The government will not spare any efforts in providing full support to the sector”

Chairman In-hwa Chang said, “POSCO Group will ensure resource sovereignty not only in steel but also in rechargeable battery materials. By securing a diverse range of lithium resources, we are paving the way to become a global top-tier lithium company through a stable domestic supply”

By building a domestic supply chain for lithium hydroxide, a key material for rechargeable batteries, POSCO has made it possible to reduce delivery times and logistics costs. POSCO Pilbara Lithium Solution will provide up to 30,000 tons per year to POSCO Future M and has signed a three-year agreement with SK On for up to 15,000 tons

POSCO Group has completed a production system capable of producing 43,000 tons of lithium hydroxide annually for rechargeable batteries, localizing a key mineral essential for the rechargeable battery industry and establishing a stable supply chain.

POSCO Pilbara Lithium Solution, a subsidiary of POSCO Group, completed the construction of its second lithium hydroxide plant, based on ore, on November 29 at the Yulchon Industrial Complex in Jeollanam-do. This milestone, achieved just one year after the completion of the first plant in November last year, establishes a total lithium production system with an annual capacity of 43,000 tons. This output represents a scale sufficient to support the production of approximately 1 million electric vehicles.

POSCO Pilbara Lithium Solution, established in 2021 as a joint venture between POSCO Holdings and Australian mining company Pilbara Minerals, imports raw lithium ore from Australia to produce lithium hydroxide for rechargeable battery materials in Korea.

▲ POSCO Group completed construction of POSCO Pilbara Lithium Solution’s second lithium hydroxide plant in the Yulchon Industrial Complex in Jeollanam-do on November 29. From the left, Korea Development Bank Chairman Seog-hoon Kang, Pilbara Minerals outside director Steve Scudamore, Australian Ambassador to Korea Jeff Robinson, POSCO Group Chairman In-hwa Chang, Prime Minister Duck-soo Han, South Jeolla Province Governor Young-rok Kim , National Assemblyman Hyang-yup Kwon, and Ministry of Trade, Industry and Energy Industrial Policy Director Seung-Yeol Lee.

The completion ceremony was attended by Prime Minister Duck-soo Han, South Jeolla Province Governor Young-rok Kim, Lawmaker Hyang-yup Kwon, Director General for Industrial Policy Seung-Yeol Lee from the Ministry of Trade, Industry and Energy, Chairman of the Korea Development Bank Seog-hoon Kang, Gwangyang Mayor In-hwa Jeong, global battery company representatives, POSCO Group Chairman In-hwa Chang, POSCO Pilbara Lithium Solution CEO Kyung-seop Lee, Australian Ambassador to the Republic of Korea Jeff Robinson, and Pilbara Minerals Independent Director Steve Scudamore.

Prime Minister Duck-soo Han remarked, “The completion of this lithium plant will be a groundbreaking turning point for POSCO Group in its journey to becoming a global leader in the lithium industry. The government will spare no effort in supporting rechargeable battery companies through comprehensive measures, including infrastructure, R&D, taxation, financing, and more.”

Australian Ambassador to the Republic of Korea Jeff Robinson said, “The comprehensive completion of POSCO Group’s lithium plant is a testament to the trust and collaboration built between Korea and Australia over many years. It is a significant milestone for both nations in the joint development of the rechargeable battery material industry.”

Chairman In-hwa Chang stated, “Amid changes in the global regulatory environment, POSCO Group has ensured a stable domestic supply of lithium, a key mineral for rechargeable battery materials, thereby opening the path to material sovereignty. Building on its leadership in steel, the group has also contributed to national prosperity in the rechargeable battery materials sector and will grow into a leading global lithium company in the future.”

In 2018, POSCO Holdings proactively acquired a 4.75% stake in Pilbara Minerals and signed a 20-year contract for the stable supply of lithium ore mined from Pilbara Minerals’ Pilgangoora mine. This measure secures a reliable raw material supply chain. Additionally, the two companies strengthened their long-term partnership by investing in POSCO Pilbara Lithium Solution, with POSCO Holdings holding an 82% stake and Pilbara Minerals owning 18%.

POSCO Pilbara Lithium Solution applied two distinct lithium extraction technologies to its plants: the first plant, completed in November last year, uses a proprietary lithium extraction technology developed by POSCO Group, while the second plant uses a commercially proven technology operated by other global companies. POSCO Group’s proprietary lithium extraction method, based on the principle of electrodialysis, offers advantages such as the recovery and reuse of byproducts during production and minimal byproduct generation. In contrast, the commercial extraction technology is universally used by leading lithium producers in Australia, China, and other countries, providing proven reliability. By operating both plants, POSCO Group aims to strengthen its technical foundation to flexibly expand its business in response to future changes in the business environment.

Moreover, the lithium hydroxide produced by POSCO Pilbara Lithium Solution is processed entirely within free trade agreement (FTA) member countries, as it uses Australian raw materials and is refined in Korea, making it free from geopolitical risks. Unaffected by changes in the regulatory environment for raw materials used in rechargeable batteries in countries such as the U.S. and the EU, it is easy to explore both domestic and international markets, leading to the successful securing of supply contracts from the early stages of operation.

POSCO Pilbara Lithium Solution plans to supply 20,000 tons of lithium hydroxide annually to POSCO Future M, the Group’s cathode material producer, starting from this amount and increasing it to a maximum of 30,000 tons in the future. On November 22, POSCO Pilbara Lithium Solution signed its first long-term contract with SK On to supply up to 15,000 tons over three years. In the future, POSCO Group aims to leverage business advantages such as shorter delivery times and reduced logistics costs from domestic lithium hydroxide production to expand its customer base both domestically and internationally.

By combining the 25,000 tons of lithium hydroxide from the first phase of its brine lithium plant in Argentina, completed earlier this year, with the 43,000 tons from its newly completed ore-based lithium plants, POSCO Group has established an annual production capacity of 68,000 tons, further strengthening its raw material capabilities for the rechargeable battery industry. Additionally, the Group is accelerating efforts to lead in next-generation materials and other innovative technologies.

The trends in POSCO Group’s flagship business area are explained by experts in an easy-to-understand manner. In Part 4, we review the issue concerning “all-solid-state batteries,” which are expected to be next-generation batteries, with Principal Researcher Jae-beom Park at the POSCO Research Institute.

Batteries are mainly divided into primary and rechargeable batteries. Primary batteries, including dry cells and mercury batteries, cannot be recharged after use. On the other hand, rechargeable batteries can be recharged and used multiple times, so they are more environmentally friendly and economically efficient. There are many types of batteries, but the most commonly used rechargeable battery is the lithium-ion battery (LIB).

Compared to other rechargeable batteries, lithium-ion batteries are used in various applications that take advantage of their superior features in all aspects, including lifespan, ease of charging, discharge rate, and costs. In particular, they are widely used in electric vehicles and mobility devices that require long operating range on a single charge due to their high energy density.

However, even LIB, which is considered the most ideal commercial rechargeable battery to date, requires continuous improvement and supplementation in terms of energy density, price, and stability. To understand why, it is necessary to look at how LIB works.

The four core components of an LIB are cathode material, anode material, electrolyte, and separator. Among them, the electrolyte acts as an important medium that helps lithium ions move smoothly between the anode and cathode materials. Since one of the main components of the electrolyte is a flammable organic solvent, there is a risk of fire or explosion in high-temperature environments or external impact situations. To solve this problem, the performance of materials such as anode and cathode materials or electrolytes can be improved, but the ultimate solution is to change the battery type. Post-LIB or next-generation batteries, such as all-solid-state batteries, lithium-sulfur batteries, and sodium-ion batteries, have emerged as solutions, and all-solid-state batteries, which are called dream batteries for dramatically improved energy density and stability, have recently received the spotlight worldwide.

The biggest difference between all-solid-state and lithium-ion batteries is the form of the electrolyte. An all-solid-state battery replaces liquid electrolyte in an LIB with a solid powder. The replacement not only changes the shape but also other LIB materials significantly. It eliminates a separator that prevents direct contact between the anode and cathode during the movement of lithium ions, as the solid electrolyte acts as a separator.

Stability

All-solid-state batteries have many advantages, and stability is the leading example. Since the electrolytes in LIBs are made of flammable organic solvents (liquid), there is a high risk of fire or explosion when the separator that blocks contact between the anode and cathode materials melts due to heat or is damaged for various reasons. However, the solid electrolyte of an all-solid-state battery acts as a separator and more effectively blocks contact between the anode and cathode materials. Therefore, it reduces the risk of fire or explosion. Moreover, the risk of leakage or oxidation due to temperature change or external impact is lower. This means reduced maintenance costs due to excellent ease of use and durability.

Higher energy density

Improved safety helps simplify battery external cases and cooling devices and naturally achieves higher energy density. If the cooling system components can be minimized, the remaining space can be used for battery cells. It will allow improved energy density per battery pack. Moreover, lithium, which has the largest energy capacity among the candidates as an anode material, can theoretically increase the energy density by up to nearly 10 times compared to conventional graphite-based anode materials. Therefore, if we can solve the safety problem of the lithium metal anode material, which is called the ultimate, next-generation anode material, and commercialize it, we can expect to dramatically improve energy density.

Coping with temperature change better

Another big advantage of changing liquid electrolytes to solids is their lower sensitivity to temperature, which allows them to operate over a wider range of temperatures. Conventional lithium-ion batteries mainly operate smoothly between -10°C and 40°C because the ion conductivity* decreases significantly at low temperatures below -10°C, and the risk of thermal runaway increases at high temperatures. On the other hand, all-solid-state batteries operate without problems in a wide temperature range of -40°C to 100°C. Therefore, they can improve the risk of battery discharge in winter or fire caused by high temperatures and can also significantly reduce the need for cooling devices to dissipate heat.
*Ionic conductivity: The degree to which ions contribute to equivalent electrical conductivity in an infinite dilution state

Simplified processes and cost reduction

While conventional lithium-ion batteries have a monopolar structure in which a cell has one electrode, all-solid-state batteries can be converted into a bipolar structure in which multiple electrodes are connected in series in a cell. The bipolar structure increases the voltage of the battery by stacking multiple electrodes in a cell, thus increasing the output. Moreover, we simplify processes, increase space utilization, and reduce costs by minimizing the BMS* for external material cooling systems.

*Battery Management System (BMS): A system that monitors the battery status and controls it to maintain the optimal conditions for use

Solid electrolytes used in all-solid-state batteries are largely divided into organic and inorganic types. The sulfide-based type is most likely to be commercialized for electric vehicles, and has attracted the attention of many companies. Sulfide-based materials are relatively soft and form a wide interface* between the electrode and electrolyte, resulting in high lithium ion conductivity.

Various structures depend on the presence of a crystalline structure, even within sulfide-based materials. In particular, solid electrolytes with a structure of LGPS (Li₁₀GeP₂S₁₂) or argyrodite (Li₆PS₅CL), a rare sulfide mineral containing germanium, are known to be able to implement ionic conductivities similar to or higher than the ionic conductivities of general liquid electrolytes (5–10 mS/cm).

*Interface: The boundary between two spatial regions occupied by different substances or physical states of matter

※ Ionic conductivity : LGPS (Li₁₀GeP₂S₁₂) 12~25mS/cm, Argyrodite(Li₆PS₅CL) 2~12mS/cm

Many companies are actively conducting R&D to create a more perfect all-solid-state battery. While it varies by company, ternary cathode materials* are likely to be the most active cathode material. For anode materials, a transition has occurred from the commonly used graphite-based materials to silicon-based materials, and eventually to lithium metal anodes, which offer higher energy density per volume and weight. Therefore, the material composition of an all-solid-state battery with high commercialization potential is the ternary cathode-sulfide solid electrolyte-lithium metal anode.

*Ternary cathode material: A cathode material in which other elements are added to lithium cobalt oxide (LCO), which is mainly used as a cathode material, for a total of three elements. It is divided into nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminum (NCA).

Leading companies have already announced plans to commercialize all-solid-state batteries by 2027, and they plan to mass produce them by 2030 at the latest. The fact that the original patent related to the composition of sulfide-based argyrodite solid electrolyte, which is considered to have the most commercialization potential, will expire in 2028 is also expected to affect the timing of commercialization.

The University of Siegen in Germany filed a PCT patent application for a sulfide-based source patent in 2008. The patent was later transferred to another company, which now holds the intellectual property rights. When the patent expires in 2028, 20 years from the date of application, many companies are likely to begin mass production of solid electrolytes.

Some companies are also preparing semi-solid-state batteries. Semi-solid-state batteries use gel-type electrolytes that are an intermediate form between liquid and solid. They are being developed to complement the shortcomings of liquid and solid electrolytes and leverage their advantages. Since they can utilize most of the processes of conventional lithium-ion batteries, the technology can be considered a stepping stone before the full-scale transition to all-solid-state batteries.

In addition to technical issues to overcome, such as low ion conductivity and high interface resistance, other important challenges include securing mass production and price competitiveness similar to that of lithium-ion batteries.

The price of the solid electrolyte for all-solid-state batteries is USD 1000/kWh, and excluding other materials, the price significantly exceeds the current price of lithium-ion batteries. This is because lithium sulfide, the core of solid electrolytes, is currently manufactured in labs and pilot lines, and the economy of scale, where the average prices drop as production increases, has yet to be realized.

However, the hope is that, except for some electrolytes that contain rare earth elements such as germanium, the raw material price of general solid electrolytes is around USD 10/kg. In other words, if the production volume can be increased with improved processes, the market price is expected to drop to USD 30/kWh. Reducing the price of solid electrolytes and lithium sulfide and overcoming technical issues are important prerequisites for popularizing all-solid-state batteries.

To secure competitiveness in the solid electrolyte business, a key material for all-solid-state batteries, POSCO Group took a 40% stake in Jeongkwan Co., a display materials and parts company, established POSCO JK Solid Solutions as a joint venture in February 2022, and completed the construction of a product plant capable of mass producing 24 tons of sulfide-based electrolytes per year. POSCO JK Solid Solutions is currently preparing for a gradual expansion to eventually increase production volume to 7,200 tons and is conducting tests on all-solid-state battery products with key customers.

Overseas, POSCO invested equity in ProLogium Technology, an all-solid-state battery manufacturer established in Taiwan in 2006, and has expanded the supply chain for all-solid-state battery materials after signing a joint research agreement. Moreover, it is considering various business plans to secure the supply chain for lithium sulfide (Li2S), a key raw material for sulfide-based solid electrolytes.

POSCO Group also has the competitiveness to mass-produce lithium metal cathode materials, which are as important as solid electrolytes in all-solid-state batteries. Since it owns a salt lake in Argentina with high purity and low impurities, it has the advantage of increasing the purity and removing impurities using lithium as an anode material. POSCO is recognized as having the world’s top level technology for lithium purification.

Lithium metal manufacturing requires an ultra-thin and wide production process to economically apply to rechargeable batteries for electric vehicles. The roll-to-roll process, POSCO’s original technology accumulated through rolling and plating processes, is ideal for making the lithium anode ultra-thin and wide. To secure differentiated competitiveness, POSCO plans to apply the process to lithium metal production. It is currently providing samples and conducting tests of lithium metal products using the electroplating method.

POSCO Group is building a full lineup by concentrating its differentiated technologies to secure competitiveness in raw materials for all-solid-state batteries, considered representative next-generation batteries. It plans to continue its efforts to create new added value by responding to the changing global market environment.

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!