POSCO Chemical Co., a battery material unit of South Korea’s steel giant POSCO Holdings Inc., on Jan. 31 broke ground on its second plant to produce artificial graphite, a key material used as an anode in electric vehicle batteries.
The new plant, based in the Pohang Blue Valley National Industrial Complex, aims to produce 10,000 tons of the material a year from the second half of 2024. POSCO Chemical completed construction of its first artificial graphite plant in December 2021, becoming the first Korean firm to localize production of the material.
Total annual production from the two plants, 18,000 tons of graphite, can manufacture enough 60 kilowatt-hour (kWh) batteries to make 470,000 EVs, POSCO Chemical said.
Artificial graphite extends battery life expectancy and shortens charging time. Last year, the material accounted for 83% of the global anode market where Chinese companies dominate, according to the state-run Korea Trade Investment Promotion Agency (KOTRA).
POSCO Chemical’s artificial graphite contains needle cokes, key material for electrodes, provided from its subsidiary POSCO MC Materials. This boosts supply value chain within the POSCO Group, the battery material maker said.
The company is also poised to become the first Korean company to export artificial graphite. Last year, POSCO Chemical signed a 939.3 billion won ($764.3 million) deal to provide artificial graphite to Ultium Cells LLC, a joint venture between LG Energy Solution Ltd. and General Motors Co., from January 2023 to December 2028.
