POSCO Strengthens Battery Material Business... Acquires 15% Stake in Australian Mining Company

[Asia Economy Reporter Hwang Yoon-joo] POSCO is investing in the Mahenge graphite mine in Tanzania, Africa, to strengthen its anode material business, one of the core materials for secondary batteries (electric vehicle batteries).

On the 17th, POSCO announced that it will acquire a 15% stake in Australian mining company Black Rock Mining, which owns the Mahenge mine, for $7.5 million. As a result, POSCO will secure a permanent offtake right for the fine powder used for anode materials produced at the Mahenge mine.

Additionally, POSCO will have the right to appoint one director to Black Rock Mining.

POSCO is investing in graphite mine stakes in Africa and Australia to build a value chain for secondary battery materials. All graphite, the raw material for anode materials, is currently imported from China. To diversify graphite supply, POSCO plans to reduce its dependence on Chinese raw materials to below 50% in the mid to long term.

Meanwhile, POSCO Chemical, which is responsible for the battery materials business within the POSCO Group, currently operates an anode material production system with an annual capacity of 44,000 tons and plans to expand production capacity to 120,000 tons by 2023 and 260,000 tons by 2030.

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