Choi Jung-woo: "Batteries, the Rice of Future Industries... Market Larger Than Memory Semiconductors in 5 Years"

Choi Jung-woo, CEO of POSCO, is delivering a commemorative speech at the groundbreaking ceremony of the artificial graphite anode material production plant held on the 2nd in Donghae-myeon, Pohang City.

[Asia Economy Reporter Hwang Yoon-joo] Choi Jung-woo, chairman of POSCO, once again expressed strong determination regarding the battery materials business, which is being promoted as a new business.

At the groundbreaking ceremony for the POSCO Chemical artificial graphite anode factory held on the 2nd at the Pohang Blue Valley National Industrial Complex, Chairman Choi said, "The battery market can grow larger than the memory semiconductor market," adding, "This is a very important leap for the material independence of Korean industry, for our battery companies, and for the future of the POSCO Group."

He also stated, "The POSCO Group must find new growth engines in key battery materials such as anode materials, cathode materials, and lithium," urging acceleration in the localization of 'artificial graphite anode materials,' which POSCO Chemical is leading.

Anode materials are one of the four key battery materials, accounting for about 12% of the battery cost. In particular, artificial graphite is a core material that can extend battery life due to its higher structural stability compared to natural graphite products, resulting in less structural deformation such as battery swelling caused by charging and discharging. Natural graphite anode materials, which use graphite mined from natural deposits, currently cost around $5,000 to $6,000 per ton, while high-end artificial graphite anode materials reach up to $10,000 per ton.

POSCO Chemical localized natural graphite anode materials in 2010 and is preparing for full-scale production. POSCO Chemical plans to complete the artificial graphite anode factory by 2023 with an investment of 217.7 billion KRW. The factory will have an annual production capacity of 16,000 tons, enough to supply approximately 420,000 electric vehicles based on 60kWh batteries.

Regarding the significance of the groundbreaking ceremony for the artificial graphite anode factory, Chairman Choi emphasized, "Ahead of the full-scale electric vehicle era, we have developed and mass-produced all processes from artificial graphite raw materials by ourselves for this essential core material that needed localization," adding, "Beyond the localization achievement of key battery materials, we have now achieved remarkable growth as a strong player recognized in the global market."

He continued, "All processes established here will be built as a state-of-the-art smart factory that integrates POSCO Group’s capabilities in materials, manufacturing, construction, and ICT, providing customers with the best products through high efficiency and quality, supporting success."

This content was produced with the assistance of AI translation services.