Latest news with #PoscoFutureM
Korea Herald
2 hours ago
- Business
- Korea Herald
Posco Future M, China's CNGR team up for global ESS push
Posco Future M has teamed up with China's CNGR to produce cathode materials for lithium iron phosphate batteries, initially targeting the fast-growing global energy storage systems market. According to Posco Future M on Monday, Yoon Tae-il, head of its energy materials business division; CNGR Vice Chairman Zhu Zongyuan; and Li Bin, CEO of FINO, CNGR's South Korean subsidiary, signed a memorandum of understanding Friday in Seoul. Under the agreement, the three companies will collaborate to establish production facilities and carry out promotional activities for LFP cathode materials. CNP New Material Technology — a joint venture in which CNGR holds a 51 percent stake, FINO 29 percent and Posco Future M 20 percent — will lead the project. Established in 2024, the partnership began with the goal of producing precursors, intermediate materials used in manufacturing battery cathodes. It is currently building a precursor production facility in Pohang, North Gyeongsang Province, with mass production slated for 2026. Industry watchers expect CNP New Material Technology's LFP cathode materials to be aimed at the European market, given regulatory hurdles in the top two markets — the US and China. China, the world's largest ESS market, is already facing intensifying price competition among domestic players, while North America — the second-largest market — is working to limit Chinese influence in its clean energy sector. According to market tracker SNE Research, as of 2023, China and North America accounted for 45 percent and 30 percent of global ESS demand, respectively, followed by Europe at 12 percent. An official from Posco Future M said, 'As we are currently at the MOU stage, it is premature to confirm any details.'
Korea Herald
3 days ago
- Automotive
- Korea Herald
Posco Future M starts supply of Korea-made battery precursors to US Ultium Cells
Posco Future M completed its first shipment of Korean-made cathode materials to the US for Ultium Cells — a battery joint venture between LG Energy Solution and General Motors — qualifying the batteries for US electric vehicle energy tax credits. Cathode materials are a key component of EV batteries, directly influencing the cells' overall capacity, energy density and safety. This milestone marks the first time cathode materials, previously heavily reliant on China, have been manufactured entirely with Korean-sourced materials. High-nickel, cobalt, manganese and aluminum cathode materials are known for high energy density and output. Although details on the supply volume remain undisclosed, the NCMA materials will be used in high-performance EV batteries manufactured by Ultium Cells to target the US, the world's second-largest EV market after China. The cathode materials, shipped on July 26, were produced using precursors from a newly completed plant in Gwangyang, South Jeolla Province, which boasts an annual capacity of 45,000 units. These precursors, made from nickel, cobalt and manganese, were then combined with lithium to create the final product. With this initial shipment, Posco Future M also plans to expand production at its Pohang plant in North Gyeongsang Province. 'While these products remain subject to the 15 percent US tariff on Korean imports, the impact can be offset by the Advanced Manufacturing Production Credit under the US Inflation Reduction Act,' said a source familiar with the matter on condition of anonymity. Under the IRA, which incentivizes US production of key battery and clean energy components, EV battery manufacturers are eligible for an AMPC credit of up to $35 per kilowatt-hour for battery cells and up to $45 per kilowatt-hour for battery modules. The credit is available for production and sale through 2031, having been recently moved up by one year. The cathodes produced by Posco Future M meet the IRA regulations that require battery components to be manufactured within the US or in a US FTA partner country such as Korea. On the other hand, battery makers using Chinese-made cathodes are ineligible for AMPC incentives, as the recently enacted One Big Beautiful Bill Act classifies China as a 'Prohibited Foreign Entity.' Posco Future M stated, 'Our self-sufficient supply chain is expected to provide a significant competitive advantage over competitors, even in the face of shifting geopolitical dynamics.' In June, Posco Future M, along with Posco Group affiliates, including Posco, Posco HY Clean Metal, Posco Pilbara Lithium Solution and Posco Lithium Solution, established a fully integrated supply chain that spans from raw materials such as lithium and nickel to precursors and cathode materials. Meanwhile, Posco Future M is also intensifying its efforts to reduce dependence on China, particularly in the graphite supply chain. The company is developing natural graphite anode materials by securing graphite ore from non-Chinese sources, such as African countries, while promoting raw material localization through domestic production of intermediate spherical graphite.
Wall Street Journal
18-07-2025
- Business
- Wall Street Journal
Battery-Material Stocks Soar After U.S. Unveils Chinese Graphite Tariffs
Global battery-material stocks jumped after the U.S. moved to impose hefty duties on graphite imported from China. The Commerce Department will impose preliminary duties of 93.5% on Chinese graphite imports, after determining the materials were unfairly subsidized. Graphite is a key component of batteries used in electric vehicles. The anti-dumping measure is likely to benefit non-Chinese companies overseas, as U.S. buyers seek alternative suppliers. South Korean battery-material stocks rallied, with Posco Future M, an affiliate of steelmaker Posco, jumping 20%. Australian suppliers also rallied, led by Syrah Resources. U.S.-traded shares of battery-tech firm Novonix, which operates a synthetic graphite facility in North America, gained 8%. 🔎 Read more:
Korea Herald
18-07-2025
- Automotive
- Korea Herald
Korean battery-makers under cost pressure as US targets Chinese graphite
Korea's battery industry is bracing for a sharp rise in US manufacturing costs as Washington moves to slap a 93.5 percent anti-dumping tariff on Chinese graphite, with many global supply chains still heavily dependent on China. According to a Bloomberg report on Thursday, the US Department of Commerce has issued a preliminary ruling to apply anti-dumping duties on imports of the key anode material used in electric vehicle batteries. Once imposed, imported Chinese graphite with 90 percent or higher carbon purity — whether natural, synthetic or blended — could face effective tariff rates of up to 160 percent, considering existing countervailing duties. A final determination is expected by Dec. 5. Chinese companies supply over 90 percent of the world's graphite, which makes up about 95 percent of the anode in EV batteries. The new US tariffs could nearly double the material cost in the US. Battery anodes account for about 7 percent of an EV battery's cost, and media reports say the new tariffs could add $1,000 to US-made battery prices, potentially pushing up EV prices. The resulting uncertainty adds pressure to Korean battery-makers expanding their US production lines to qualify for incentives, such as EV tax credits, under the Inflation Reduction Act and the Advanced Manufacturing Production Credit. LG Energy Solution, Korea's largest battery-maker, currently operates three plants in the US, including two through a joint venture, and is constructing four more. Samsung SDI operates two US-based plants, and SK On is building two joint venture factories in addition to its existing US plant. The industry is already under pressure as it awaits a possible early termination of IRA tax incentives this September, which adds further uncertainty to their performance. Shares of Korean battery material producers surged in early Friday trading amid expectations of growing demand for a China-independent anode supply chain. Posco Future M, Korea's leading battery materials supplier, saw its stock price jump by as much as 24 percent on the benchmark Kospi, before settling at 156,300 won ($112) as of 12:15 p.m., up 19 percent from the previous day's close. The company ranked 11th in the global anode market last year with a 1.3 percent share, trailing 10 Chinese firms. Posco Future M reportedly operated its anode production facilities at only around 30 percent capacity by the end of the year, as low-cost Chinese products continued to undercut prices.
Korea Herald
18-07-2025
- Automotive
- Korea Herald
Posco Future M looks to new plant for rebound after sluggish Q2
Korean battery material producer expects a turnaround as Gwangyang precursor plant enters full-scale production in the second half of the year Posco Future M posted a sharp drop in second-quarter profit and swung to a net loss, hit by slowing demand for EV battery materials, though the company pointed to a potential rebound in the second half of the year as new production ramps up. According to a regulatory filing on Friday by the Korean battery material producer, it logged 660.9 billion won ($474.7 million) in revenue and 770 million won in operating profit in the April to June period this year, down 27.8 percent and 71.7 percent, respectively, from the same period last year. The company reported a net loss of 33.5 billion won in the second quarter after posting a 48.9 billion won net profit in the first quarter. Posco Future M's energy materials division was hit hardest, with quarterly revenue falling 37.6 percent from the previous quarter to 315.4 billion won, and the unit posting an operating loss of 25.5 billion won as the global EV market showed signs of slowing. According to the company, sales of high-nickel cathode materials decreased from the previous quarter while sales of natural graphite anode materials increased among overseas clients. Posco Future M said the decrease in sales led to a dip in its plant operation rate, dampening overall profitability. Posco Future M said it expects to see profitability improve as its precursor plant in Gwangyang, South Jeolla Province, is set to enter full-scale mass production in the second half of this year. Precursors are key substances used in the production of cathode materials, one of the main components of lithium-ion batteries. The company held an official opening ceremony for the Gwangyang plant last month. According to the firm, the new plant has an annual production capacity of 45,000 metric tons of precursor, which is enough to produce batteries for 500,000 EVs. In addition to the precursor plant entering full-scale production, Posco Future M is projected to benefit from the US government continuing to raise the pressure on China-dependent supply chains by announcing a maximum 721 percent tariff on Chinese anode producers and a preliminary anti-dumping tariff of 93.5 percent on imported Chinese graphite. 'As Posco Future M has a production capacity that can meet demand for non-Chinese EV battery materials, both cathode and anode,' said a battery industry official. 'The intensifying trade war between the US and China will give (Posco Future M) an advantage in securing contracts in Western countries.'
