POSCO Future M Co., a unit of the South Korean steel giant POSCO Group, is set to significantly increase its synthetic graphite production by the end of 2025. This strategic move comes as global demand for electric vehicle (EV) battery materials rises, spurred by China’s export restrictions and Western efforts to diversify supply chains. Synthetic graphite is a key component in EV batteries, and POSCO’s expansion positions South Korea as a pivotal player in this growing market.
The company plans to boost its production capacity to 18,000 tons by the end of 2024, up from the current 8,000 tons annually. This expansion will continue into the following year, with a planned investment of an additional 400 billion won (approximately $300 million) by the end of 2025. The announcement coincided with a visit by Kang Kyung-sung, vice minister of the Ministry of Trade, Industry and Energy, to POSCO Future M’s Pohang facility, located 260 kilometers southeast of Seoul.
This expansion is part of a broader investment strategy by POSCO. Last year, the company announced plans to invest 12.1 trillion won in its secondary battery business by 2027. POSCO Future M is also considering further investments of 3.1 trillion won in the Pohang plant, which is the only facility in South Korea producing synthetic graphite.
The Pohang complex, a designated special industrial zone for secondary batteries, encompasses the entire manufacturing cycle for these batteries. From mineral processing to producing precursors, anode and cathode materials, and recycling, the complex is a testament to South Korea’s commitment to becoming a leader in the EV battery sector.
Kang emphasized the importance of the secondary battery industry to Korea’s economy and economic security. He announced that the government will provide 5.9 trillion won in policy financing and other incentives to rechargeable battery companies this year. POSCO Future M stands to benefit significantly from these initiatives, as well as from international measures like the US Inflation Reduction Act and the European Union’s Critical Raw Materials Act, designed to counter China’s dominance in high-tech industries.
