Posco Future M Company, the battery materials subsidiary of South Korea's Posco Holdings, announced plans to invest KRW 357 billion (US$ 239 million) in a new facility in Vietnam for the production of artificial graphite anode materials for electric vehicle (EV) batteries, following reports of a KRW 1 trillion (US$ 670 million) five-year supply contract with an unnamed global automaker. Artificial graphite anodes are key battery components that help speed up charging performance and extend battery life.
Posco confirmed that the new facility will be built in Thai Nguyen, an industrial city in the north of the country, which is expected to “enhance its quality and cost competitiveness, while expanding production capacity as its global orders continue to increase.”
The company confirmed that it has been in ongoing discussions with multiple customers regarding the supply of artificial graphite anode materials and is now “making a strategic investment to scale up production capacity and strengthen its business competitiveness.”
Construction of the new plant is scheduled to begin in the second half of this year, with mass production targeted for 2028. The company confirmed that the facility will be built on a site capable of supporting production of up to 55,000 metric tons per year, with expansion to be carried out in phases as additional orders are secured.
Posco said in a statement: “As trade regulations and protectionism intensify worldwide, the need to stabilise supply chains for key battery materials is becoming increasingly critical. While demand for the material continues to grow steadily, heavy reliance on a limited number of countries has made supply chain diversification an urgent priority.”
The company currently operates an artificial graphite anode material plant in Pohang, in South Korea’s Gyeongsangbuk-do province, with an annual production capacity of 8,000 metric tons. It expects that the knowledge and expertise gained through its existing domestic plant will help it “produce cost-competitive products at its Vietnam facility for its global customers.”
Posco said Vietnam offers significant cost advantages compared with many other countries in the region, from initial investment to ongoing costs such as electricity, labour, and logistics, with a “cost structure that remains competitive even relative to other Southeast Asian countries, such as Indonesia. The country also benefits from well-developed industrial infrastructure, including a reliable power grid, and is actively cultivating favorable trade conditions with major markets, including the US, through its export-driven economic growth strategy.”
