POSCO FUTURE M

◈ Invested 217.7 billion won to build an artificial graphite anode plant
◈ POSCO CEO Choi Jeong-woo said, “The plant realizes Korea’s goal of becoming an industrial powerhouse, secures competitiveness of battery sector, and is an important breakthrough for the future growth of the group.”
◈ Domestic production of battery materials set to strengthen competitiveness in the battery industry
◈ Successful localization of key battery materials that extend battery life and enable faster charging 

POSCO Chemical sets out on localizing the core battery materials for electric vehicles, as it breaks ground for a new plant for artificial graphite anodes.

POSCO Chemical held a sod-turning ceremony for a factory that will produce artificial graphite anodes in Donghae-myeon, Pohang on July 2, 2020. The event was attended by about 100 customers and affiliates including POSCO CEO Choi Jeong-woo, LG Chem President Kim Myung-hwan, Gyeongbuk Province Governor Lee Cheol-woo, Pohang Mayor Lee Kang-deok, POSCO Chemical CEO Min Kyung-zoon, and Head of POSCO’s New Growth Division Oh Gyu-seok.

The artificial graphite anode factory is being built with an investment of 217.7 billion won on a 78,535㎡site inside the Blue Valley National Industrial Complex in Pohang. The plant, which will be capable of producing 16,000 tons of anodes a year, is slated to be built in phases by 2023. With 16,000 tons of anodes, you can power approximately 420,000 60kWh EVs.

In the congratulatory remarks, POSCO CEO Choi Jeong-woo said, “We managed to develop and mass produce materials whose domestic production had been one of our primary challenges now that we are about to enter the era of EVs in full scale. This is a critical moment for realizing the goal of making Korea an industrial powerhouse, securing competitiveness of the domestic battery industry, and for the future growth of the POSCO Group.”

Anodes are one of the core materials in batteries and are divided into artificial graphite and natural graphite depending on the raw materials used. Artificial graphite anodes are manufactured at high temperatures, which improves crystallization and creates a more uniform and stable structure. This significantly enhances battery life and fast charging capabilities, which are important features in EV batteries.

Until now, POSCO Chemical has relied solely on imported artificial graphite anodes from Japan and China, but now they can be produced at home, which will greatly bolster the competitiveness of the Korean battery industry. Moreover, POSCO Chemical is manufacturing needle cokes, the raw material for making artificial graphite, from its subsidiary PMC Tech, achieving full localization from raw materials through to production. This will not only enable a stable supply of raw materials, but also advance the carbon material value chain and maximize added value.

This is a meaningful breakthrough as it has established a foundation for POSCO Chemical to actively react to the exponential growth of the EV market. The company has now expanded its product portfolio from high-nickel cathodes, natural graphite anodes to artificial graphite anodes, strengthening its market position as a global manufacturer of the overall secondary cell materials.

Even in the midst of economic uncertainties due to COVID-19, it is said that the company managed to secure future growth based on the POSCO Group’s R&D and preemptive investment on secondary cell businesses, which is the new growth engine for the company.

POSCO Chemical explained that it needs to continue with the investment for a timely response in the era of EVs, as the industry is anticipated to grow rapidly by over 25% on average each year, from 3 million units in 2020 to more than 9.3 million units by 2025.

The company will prepare for future demands by facilitating the development of next-generation technologies through the secondary cell R&D center, while expanding the global share and driving steep growth by continuously investing in increasing the production capacity so the company will produce 105,000 tons of natural graphite anodes, 16,000 tons of artificial graphite anodes, and 90,000 tons of cathodes annually by 2023 based on domestic production.

[Photo 1] POSCO CEO Choi Jeong-woo and participants turning the first sod at the cutting ceremony for the artificial graphite anode factory. From the left, CEO Choi Jeong-woo, LG Chem President Kim Myung-hwan, POSCO Chemical CEO Min Kyung-zoon, Head of POSCO’s New Growth Division Oh Gyu-seok. From the right, Gyeongbuk Province Governor Lee Cheol-woo, Pohang Mayor Lee Kang-deok, members of the National Assembly Kim Jeong-jae and Kim Byung-wook.

[Photo 2] POSCO CEO Choi Jeong-woo giving a congratulatory speech at the groundbreaking ceremony for the artificial graphite anode plant.