South Korea’s POSCO Future M has landed a 671 billion won ($470 million) contract to supply battery anodes to an unnamed US automaker, marking its largest such agreement since entering the sector in 2011.
The four-year deal, running from October 2027 through September 2031, represents 18.1% of the company’s total sales last year and could potentially extend through 2037, bringing the total value to 1.7 trillion won, according to regulatory filings released this week.
The contract reflects growing efforts by automakers to reduce dependence on Chinese battery materials ahead of stricter US sourcing requirements under the Inflation Reduction Act, which will disqualify vehicles containing Chinese graphite from federal tax credits starting in 2027.
POSCO Future M holds just 1.3% of the global anode market, ranking 11th worldwide, while Chinese suppliers dominate with more than 80% market share and occupy all top-ten positions. Industry observers note the company stands as the only major non-Chinese producer capable of manufacturing both natural and synthetic graphite anodes at scale.
The Korean materials maker plans to eliminate Chinese intermediate materials from its Sejong plant operations by 2027, positioning itself to capitalize on Washington’s escalating restrictions on Chinese battery components.
