POSCO Chemical Expands Production Capacity of Artificial Graphite Anode Materials

Construction of Phase 2 of the Artificial Graphite Anode Material Plant with an Annual Capacity of 10,000 Tons Begins at Pohang Blue Valley National Industrial Complex

Artificial graphite anode materials are being manufactured using automated robots at the first phase plant of POSCO Chemical, completed in December 2021. Photo by POSCO Chemical

[Asia Economy Reporter Jeong Dong-hoon] POSCO Chemical is expanding its production capacity of artificial graphite anode materials.

POSCO Chemical announced on the 1st that it began construction of the second phase plant for artificial graphite anode materials with an annual capacity of 10,000 tons at the Pohang Blue Valley National Industrial Complex in Gyeongbuk the day before.

POSCO Chemical completed the first phase plant with an annual capacity of 8,000 tons of artificial graphite anode materials in December 2021, successfully localizing the production for the first time in Korea. Once the second phase plant, scheduled for completion in the second half of next year, is established, the total production capacity will reach 18,000 tons. This amount can supply approximately 470,000 electric vehicles based on 60 kWh batteries.

Currently, the global anode material market for electric vehicles is led by artificial graphite. This is because it has advantages such as extending battery life and reducing charging time compared to natural graphite. According to the Korea Trade-Investment Promotion Agency (KOTRA), as of last year, artificial graphite accounted for 83% of the global anode material market, with Chinese companies occupying most of the market.

POSCO Chemical manufactures artificial graphite using needle coke processed from coal tar, a byproduct of the steelmaking process. Needle coke is supplied by its subsidiary, POSCO MC Materials. POSCO secures the steelmaking byproduct market, and POSCO Chemical ensures a stable supply of raw materials, thereby enhancing resource circulation and completing the value chain within the group to increase synergy.

Based on this value chain competitiveness, POSCO Chemical signed a supply contract worth approximately 939.3 billion KRW in December last year with Ultium Cells, a battery joint venture between US-based GM and LG Energy Solution, for artificial graphite anode materials. The supply period is six years, from 2023 to 2028.

This is the first overseas export case of artificial graphite anode materials following localization, and POSCO Chemical plans to complete the second phase plant on schedule to smoothly supply the contracted volume.

Additionally, in response to the continuously increasing global demand and the battery industry's expansion of non-China material supply chains following the implementation of the US Inflation Reduction Act (IRA), POSCO Chemical plans to secure a leading position in the artificial graphite anode material market proactively.

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