POSCO FUTURE M

- On the 18th, she visited the POSCO Future M plant to assess the current status of the anode material supply chain establishment and listen to challenges

- POSCO Future M, the only domestic graphite-based anode material producer, is pursuing diversification of raw material supply chains

Deputy Minister of Foreign Affairs Kang In-sun visited POSCO Future M's Sejong anode material plant on the 18th and stated, "The government will actively support the recovery of operation rates."

Deputy Minister Kang made the visit amid heightened attention to the U.S. government's future policies related to the battery industry supply chain following the presidential election. The purpose was to assess the current status of establishing a supply chain for anode materials, a key component of secondary batteries, and to hear any difficulties faced by POSCO Future M.

Deputy Minister Kang stated, "Natural graphite and anode materials are among the key minerals with a significantly high dependence on external sources, making the diversification of supply chains imperative." She added, "For our companies like POSCO Future M, which are facing challenges due to declining operation rates, the government will actively support the recovery of these rates to help overcome the crisis and turn it into an opportunity."

Deputy Minister Kang is the chairperson of the Minerals Security Partnership (MSP), launched in June 2022 to secure and diversify the global supply chain for critical minerals.

The MSP, currently comprising 14 countries (South Korea, the United States, the United Kingdom, Japan, Canada, Sweden, France, Australia, Finland, Germany, Norway, Italy, India, and Estonia) and the European Union, will see South Korea assume the chairmanship for one year starting July 1, 2024, following the United States. South Korea will lead the cooperation among MSP member countries to ensure that ongoing MSP pilot projects achieve substantial and concrete results.

POSCO Future M, the sole domestic graphite-based anode material producer, ranks within the top ten globally in production volume. However, its operation rate has plummeted recently due to aggressive low-cost strategies by Chinese companies, threatening its position within the top ten.

Consequently, the localization of domestic anode materials and the diversification of global supply chains necessitate the continuous maintenance and development of POSCO Future M's anode material business. There is a growing consensus that active support and cooperation from the South Korean government and the international community are essential.

In an urgent situation where securing the global supply chain for anode materials is critical, the Ministry of Foreign Affairs is expected to derive specific global cooperation measures to foster the anode material industry through future MSP activities.

In March of this year, POSCO Future M signed a contract with Australian mining company Syrah Resources to supply up to 60,000 tons of graphite annually from mines in Mozambique, Africa, starting in 2025. At the POSCO Group level, POSCO International has entered into a joint investment agreement for the Mahenge graphite mine in Tanzania, Africa, securing a graphite supply chain of up to 60,000 tons annually.