Posco Chemical's Min Kyung-jun Hints at New North American Anode Material Plant... "Outline Within the Year"

Meeting with reporters right after the 2nd Battery Industry Day event
Anode material sector, which had no overseas factories yet despite aggressive investment in cathode materials,
Overseas expansion materializes... "In talks with customers including the Big 3 North American automakers"

Minkyung Jun, CEO of POSCO Chemical. Photo by POSCO Chemical

Min Kyung-jun, CEO of POSCO Chemical, hinted at the establishment of an anode material factory targeting the North American electric vehicle market.

On the afternoon of the 1st, after the 'Battery Industry Day' event hosted by the Korea Battery Industry Association at the JW Marriott Hotel in Seocho-gu, Seoul, Min said in response to a reporter's question about whether they are considering expanding the North American anode material factory, "Yes. There is not much time left to start production by 2026," adding, "If the outline is not finalized within this year, it will not be possible. We plan to promote investment in expanding the anode material factory in North America through a joint venture (JV) within this year."

Anode material is a key component that determines battery charging speed and lifespan. The weight ratio of each raw material in a battery cell is 32% cathode material, 20% anode material, and 18% electrolyte. Based on anode material sales, POSCO Chemical ranks fifth globally, following Putailai (China), Showa Denko (Japan), BTR (China), and Shanshan (China).

POSCO Chemical is currently the only domestic battery company producing both cathode and anode materials, which are core battery materials. In the case of cathode materials, they have secured orders worth over 21 trillion KRW from GM, a North American automaker. To meet this demand, they are expected to establish a supply system combining 60,000 tons per year from the Gwangyang plant and 30,000 tons per year from the Canadian plant, totaling 90,000 tons. On the other hand, anode material factories produce and supply from locations such as Sejong and Pohang, but no overseas factories have been pursued yet.

Min stated, "We need to hurry to meet future anode material production targets," adding, "We are currently in discussions with the three major U.S. automakers and battery companies regarding anode material expansion." The three major U.S. automakers are GM, Ford, and Stellantis.

The U.S. Inflation Reduction Act excludes tax credit benefits entirely if electric vehicle battery minerals or components from 'concerned countries' such as China and Russia are included. The Act specifies that battery minerals such as aluminum, graphite, lithium, and nickel must be mined or processed in countries that have free trade agreements (FTA) with the U.S. or recycled in the North American region to receive up to half of the maximum subsidy ($3,750, approximately 5.31 million KRW). The required ratio to qualify for subsidies starts at 40% next year, increases to 80% by 2027, and reaches 100% by 2029.

In the global battery supply chain restructuring process, the value of anode materials produced by POSCO Chemical is expected to rise. Since most anode material producers are Chinese companies, the Inflation Reduction Act restricts their entry into the North American battery market. Min said, "Our customers are currently struggling with anode materials," adding, "The required quantity is large, so POSCO Chemical alone cannot cover it, and we will consult with customers such as automakers and battery companies."

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