Proposed investment would secure priority access to synthetic graphite anodes as EV supply chains diversify
Posco Future M has signed a letter of intent with Hyundai Motor Group to explore a 100 billion won ($74.4 million) equity investment in its synthetic graphite anode materials project in Vietnam, the South Korean battery materials maker said Tuesday.
Under the agreement, Hyundai Motor Group will consider taking a stake in the project and seek priority purchasing rights for its synthetic graphite anode materials. The companies also agreed to collaborate on early-stage product development and quality assessments to meet electric vehicle performance requirements.
The proposed partnership would help Posco Future M accelerate construction of its overseas production facility while giving Hyundai Motor Group a more stable supply of critical battery materials.
Posco Future M began construction of a synthetic graphite anode materials plant in Thai Nguyen, Vietnam, in March, with an investment of approximately 357 billion won. The facility is scheduled to begin mass production in 2028.
The company has already secured customer orders for the first phase of the project and is pursuing a second phase of investment to expand production.
Synthetic graphite anodes help improve battery fast-charging performance and lifespan, making them increasingly important as automakers seek higher-performance EV batteries.
Demand for diversified supplies is also growing as the US tightens sourcing requirements involving prohibited foreign entities and Europe advances industrial policies to strengthen domestic supply chains.
The latest agreement builds on a broader partnership between Posco Group and Hyundai Motor Group. The two companies signed a memorandum of understanding in April 2025 to expand cooperation in steel and rechargeable batteries amid shifting global trade conditions.
Posco Future M has been expanding its customer base and strengthening its graphite supply chain. In July 2025, it signed a natural graphite anode supply agreement with a major Japanese battery maker.
It subsequently secured a 671 billion won natural graphite anode materials contract with a global automaker in October 2025, followed by a roughly 1.01 trillion won synthetic graphite anode materials deal in March 2026.
The company is also working to integrate raw material sourcing, intermediate processing and finished-product manufacturing across its natural and synthetic graphite operations, aiming to offer automakers and battery manufacturers alternatives as they diversify supply chains.
The strategy aligns with Posco Group's "Triple-core" growth plan unveiled in July, which focuses on industrial resources such as steel, strategic resources including lithium and battery materials, and energy resources such as liquefied natural gas and renewables.
As South Korea's only producer of both cathode and anode materials, Posco Future M aims to strengthen its position as the group's core battery materials supplier by expanding its global production network and reducing supply chain risks.
yejinlim@heraldcorp.com
