Posco Future M Company, the battery materials subsidiary of South Korea’s steel and chemicals group Posco Holdings Inc, announced plans to produce spherical graphite in South Korea, as it looks to strengthen its battery materials supply chain and reduce its dependence on supplies from China. The company said it currently imports all its graphite needs from suppliers located in China.
The company said it plans to establish a new subsidiary, tentatively named Carbon New Materials Company Ltd, to oversee production of high-purity spherical graphite, a key material used in battery anodes due to its high energy density.
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Posco Future M confirmed its board has approved a KRW 396 bn (US$ 278 million) investment to build a production facility. While a final decision on the plant’s location has yet to be announced, it is likely to be located next to the company’s battery anode materials production facility in Sejong, South Korea. The company is set to become the first to produce spherical graphite in the country.
South Korea’s reliance on China for battery-grade graphite has raised alarm bells in Seoul, particularly after China recently introduced export controls on rare earths that are used by the semiconductor industry.
Reports suggest Posco Future M has secured supplies of non-Chinese natural graphite, from Australia’s Syrah Resources, Black Rock Mining, Faru Graphite and NextSource.
