POSCO Future M has agreed to collaborate with the Hyundai Motor Group on a synthetic graphite anode material business in Vietnam. The company plans to accelerate the establishment of a local production base and expand its supply chain for non-Chinese battery materials.
POSCO Future M said Tuesday that it signed a letter of intent (LOI) with the Hyundai Motor Group to cooperate on the synthetic graphite anode material business in Vietnam. The two companies are expected to discuss specific cooperation plans, including investment scale and methods.
Hyundai Motor Group is considering an equity investment of 100 billion won in POSCO Future M's ongoing Vietnam project. Along with this, it is pursuing the acquisition of priority purchase rights for synthetic graphite anode materials produced locally.
The two companies also agreed to cooperate on the preliminary development and quality evaluation of synthetic graphite anode products tailored to electric vehicle performance.
Synthetic graphite anode material is a key material that enhances the fast-charging performance and lifespan of batteries. As battery supply chains are being restructured at an accelerated pace due to regulations such as the U.S. Prohibited Foreign Entities (PFE) rule and the European Industrial Acceleration Act (IAA), the importance of securing non-Chinese materials is growing.
This year, POSCO Future M began construction of a synthetic graphite anode material plant in Thai Nguyen, Vietnam, with an investment of approximately 357 billion won.
Mass production is targeted for 2028. The first-phase investment volume has been secured through order contracts with customers, and the company is currently pursuing second-phase investments. If the Hyundai Motor Group's investment is finalized, it is expected to bolster efforts to establish a local production base and secure stable demand sources.
The cooperation between the two companies is an extension of the memorandum of understanding signed in April last year between the POSCO Group and the Hyundai Motor Group in the steel and secondary battery sectors.
The two sides have been exploring cooperation plans in the field of future mobility materials to respond to changes in the global trade environment.
POSCO Future M is pursuing internalization of its supply chain, from raw materials for natural and synthetic graphite anode materials to intermediate materials and product production.
Following a natural graphite anode material supply contract with a Japanese battery manufacturer in July last year, the company also signed supply contracts for natural graphite anode materials worth 671 billion won and synthetic graphite anode materials worth approximately 1 trillion 14.9 billion won with global automakers.
A POSCO Future M official said, "We plan to enhance the competitiveness of our strategic resources business, which handles lithium, cathode materials, and anode materials under the POSCO Group's 'Triple Core' strategy, by expanding the non-Chinese anode material supply chain."
in INDUSTRY
