POSCO Future M is collaborating with Hyundai Motor Group on a synthetic graphite anode project in Vietnam.
On November 3, POSCO Future M announced that it has signed a letter of intent (LOI) with Hyundai Motor Group for investment in the synthetic graphite anode business in Vietnam. As part of this agreement, Hyundai Motor Group is considering a 100 billion won equity investment and aims to secure priority purchase rights for synthetic graphite anodes.
Previously, POSCO Group signed a memorandum of understanding with Hyundai Motor Group in April last year to explore mutual cooperation in the steel and secondary battery sectors, aiming to secure a leading position in the future mobility materials market while adapting to changes in the global trade environment and industrial paradigms.
This LOI signing provides POSCO Future M with a solid foundation for building global production facilities, allowing for accelerated construction efforts. Hyundai Motor Group is expected to establish a stable battery material supply chain in the global market based on the priority purchase rights.
The two companies plan to collaborate on the development and quality evaluation of synthetic graphite anode products that meet the performance requirements of electric vehicles.
Synthetic graphite anodes are advantageous for enhancing battery fast-charging performance and lifespan. Demand for these materials has been steadily increasing as electric vehicle performance continues to advance.
In this market environment, POSCO Future M has commenced construction of a synthetic graphite anode plant in Thai Nguyen, Vietnam, with an investment of approximately 357 billion won this year. The company has completed customer contracts for the first phase of investment, targeting mass production by 2028, and is currently pursuing the second phase of investment.
In July of last year, POSCO Future M signed a supply contract for natural graphite anodes with a major Japanese battery manufacturer. In October of the same year and in March of this year, it secured supply contracts for natural graphite anodes worth 671 billion won and synthetic graphite anodes worth approximately 1.01 trillion won, respectively, with global automakers.
A representative from POSCO Future M stated, "As the only supplier of both anodes and cathodes in Korea, we will enhance our business competitiveness based on supply chain solutions and technologies that can respond to trade regulations in various countries, further solidifying our position as a core enterprise for strategic resources within the group."
* This article has been translated by AI.
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