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Korea Herald
4 days ago
- Automotive
- Korea Herald
Posco Future M advances supply chain independence with new precursor plant
Facility aims to meet rising demand for China-independent battery materials amid shifting US trade policies Korean battery material manufacturer Posco Future M officially opened its new precursor plant Tuesday in Gwangyang, South Jeolla Province, marking a key step in its efforts to build a self-sufficient supply chain. 'The completion of this precursor plant, following Posco Group's establishment of its own nickel supply chain, marks the realization of a fully self-sufficient system, from raw materials to intermediate products and the finished cathode material,' said Eom Gi-chen, CEO of Posco Future M, during the opening ceremony. 'In today's rapidly changing global supply chain landscape, the Gwangyang precursor plant will enhance the competitiveness and growth of Korea's battery industry.' The 22,400 square meter facility has an annual production capacity of 45,000 metric tons of precursor — a chemically synthesized mixture of metals used in cathode materials — enough to support battery production for 500,000 electric vehicles, the company said. The facility, which has been ramping up operations since May, was largely in operation during a media tour held the same day. The plant was filled with around 50 large metal tanks spread across the factory floor. The precursor production process involves six main steps: dissolving metals in purified water, inducing chemical reactions with catalysts to form precursor crystals, then washing, dehydrating, drying and packaging the final product. 'The reaction process is the core of precursor manufacturing, as it determines the material's density and elemental ratio, both of which are tailored to meet customer specifications,' a company official said, noting Posco Future M's flexibility in adjusting compositions to client needs. Currently, the company uses nickel, cobalt and manganese to produce precursors for NCM cathodes used in electric vehicle batteries, according to the order by Ultium Cells, a US-based 50:50 joint venture between LG Energy Solution and General Motors. 'All precursors produced at this facility are currently supplied to Ultium Cells,' the official added. The company said the timely launch was driven by growing demand from customers for China-independent supply chains, while many other battery projects have been delayed amid sluggish EV demand. The US Inflation Reduction Act disqualifies EV batteries containing materials from 'foreign entities of concern,' including China, from tax credit eligibility. This policy shift has prompted automakers to reduce reliance on Chinese suppliers, who currently dominate 90 percent of the global precursor market. To meet these evolving demands, Posco Future M said it has also secured alternative sources for raw materials used in precursor production. 'We understand the risks automakers face when their supply chains are overly concentrated in China. Regardless of cost considerations, that's where the competitiveness of our plant comes in,' said Lee So-young, head of the business strategy planning group at Posco Future M. 'As US policies continue to evolve, we're working to establish a supply chain that's less exposed to such changes, including sourcing raw materials independently of Chinese suppliers.' The plant's 10 production lines are controlled by about 10 staff members via monitors that provide a real-time overview of the process. With a high degree of automation, the company aims to enhance quality control of its cathod materials — a factor it says was more difficult to achieve when using externally sourced precursors. 'When customers request specific features, many of them cannot be achieved simply by processing third-party precursors,' Lee added. 'We believe our ability to meet those demands in both quality and cost also gives us a key competitive edge.'
Korea Herald
06-06-2025
- Business
- Korea Herald
Posco Future M invests W436b for new anode material plant in Saemangeum
South Korean battery materials producer Posco Future M is set to build a spherical graphite manufacturing facility in Saemangeum, North Jeolla Province, as part of efforts to reduce dependence on China for anode materials. The company signed an agreement on Thursday with the Saemangeum Development and Investment Agency (SDIA), North Jeolla Province, Gunsan City and the Korea Rural Community Corporation to invest 436.1 billion won ($321.3 million) in the new facility, according to North Jeolla Province. The signing ceremony, held in Gunsan, North Jeolla Province, was attended by Posco Future M CEO Eom Gi-chen, North Jeolla Gov. Kim Kwan-young, SDIA Administrator Kim Kyung-ahn, Gunsan Mayor Kang Im-jun and other local officials. 'With this new facility, we aim to respond to increasingly protectionist trends in global supply chains and contribute to the competitiveness and growth of Korea's battery industry,' Eom said. Spherical graphite is refined natural graphite that reaches about 95 percent purity, then is further upgraded to over 99.9 percent for use in anode production. Upon completion in 2027, the plant will have an annual production capacity of 37,000 tons of spherical graphite, according to the company. Of the total investment, 277.3 billion won will be funded through a rights offering scheduled for July. The investment follows Posco Future M's board decision in April to localize the production of key battery materials. With China currently accounting for over 99 percent of the global supply of spherical graphite, Posco Future M is seeking to lessen its dependence on Chinese sources amid growing geopolitical risks and potential US restrictions on Chinese battery materials for electric vehicles.
Korea Herald
24-03-2025
- Automotive
- Korea Herald
Posco Future M CEO pledges over W7.4tr in revenue by 2027
Posco Future M CEO Eom Gi-chen on Monday vowed to capture over 7.4 trillion won ($5 billion) in sales revenue by 2027, leveraging the electric vehicle supply chain's decreasing reliance on China. 'Capitalizing on the opportunities arising by the slowdown in the demand for electric vehicles, we aim to enhance productivity by 30 percent through expanding facilities and developing production process technologies to secure unmatched manufacturing competitiveness,' said Eom, during a shareholders meeting earlier in the day, in Pohang, North Gyeongsang Province, where he was officially appointed as CEO and internal director of the board. 'Our goal is to more than double sales by 2027 compared to last year and position ourselves as a Top 3 rechargeable battery materials company worldwide, thereby contributing to the growth of Posco Group,' he added. Addressing the trade war prompted by the second Donald Trump administration against Beijing, which has led to a strategic shift in EV battery material sourcing away from China, Eom underscored that Posco Future M's strong capabilities are now highly recognized. This is bolstered by a series of supply inquiries from carmakers, primarily due to the company and Posco Group's extensive raw material supply chains for lithium, nickel and graphite, among others. Posco Future M is gearing up to gain a competitive edge in the EV battery materials market with a diverse product portfolio. This includes lithium manganese-rich cathode materials and lithium iron phosphate cathodes for budget-friendly electrified vehicle fleets, which are currently under development by Korean battery manufacturers. For high-end EV batteries, the company is preparing ultra-high nickel single-crystal cathodes with over 95 percent nickel to enhance vehicle range and stability. The materials producer is also working on strengthening its foothold in the anode market worldwide, which is predominantly led by its Chinese competitors. It focuses on low-expansion natural graphite and silicon anodes designed to significantly reduce battery charging time and increase storage capacity. According to market tracker SNE Research, Posco Future M secured ninth place in terms of anode market share globally, standing out as the only Korean company to make it to the Top 10 list last year. In the shareholders meeting, former Finance Vice Minister Hur Kyung-wook was appointed as a new outside director and a member of the audit committee. Recognized for his professional expertise and years of experience in economics and finance, Hur is expected to stabilize the company's financial structure further. Cheon Seong-rae, head of the business synergy division at Posco Holdings, was appointed as a nonexecutive director.
