POSCO Future M, Hyundai Motor Group explore Vietnam anode investment
A rendering of POSCO Future M's artificial graphite anode material plant under construction in Thai Nguyen Province, Vietnam / Courtesy of POSCO Future M
POSCO Future M said Tuesday that it had signed a letter of intent with Hyundai Motor Group to explore investment and business cooperation in its artificial graphite anode material project in Vietnam, aiming to strengthen the global battery supply chain.
Under the agreement, Hyundai Motor Group will consider an equity investment of around 100 billion won ($74.6 million) in the project and seek preferential purchasing rights for the materials.
The partnership builds on a memorandum of understanding signed by the two groups in April last year to expand cooperation in steel and secondary battery materials amid changes in global trade conditions and industrial trends.
The agreement is expected to give POSCO Future M a stronger footing for expanding its overseas production base and accelerate construction of its planned Vietnam plant. Hyundai Motor Group, meanwhile, aims to secure a stable supply of battery materials for its global operations.
The two companies also plan to cooperate on developing artificial graphite anode materials tailored to electric vehicle (EV) performance requirements and evaluating their quality.
Artificial graphite anode materials help improve battery charging speed and lifespan, with demand rising as EV performance requirements become more demanding. They are also gaining importance in supply chain diversification amid global restructuring, including the introduction of U.S. Prohibited Foreign Entity requirements and the European Union's Industrial Accelerator Act.
POSCO Future M broke ground this year on an artificial graphite anode material plant in Thai Nguyen, Vietnam, with an investment of approximately 357 billion won. The facility is scheduled to begin commercial production in 2028. The company has secured customer supply agreements for the first phase and is pursuing a second-phase investment.
The company is also working to build an integrated supply chain spanning raw materials, intermediate materials and finished products for both natural and artificial graphite anodes, positioning itself as an alternative supplier for global automakers and battery makers seeking to diversify their sourcing.
POSCO Future M has continued to expand its customer base through supply agreements with global battery makers and automakers. In July last year, it signed a natural graphite anode material supply deal with a major Japanese battery manufacturer, followed by a 671 billion won natural graphite anode supply contract with a global automaker in October and a roughly 1.015 trillion won artificial graphite anode supply deal with another global automaker in March this year.
POSCO Group unveiled its future growth strategy in July, outlining plans to build a “triple-core” business structure encompassing industrial resources such as steel, strategic resources including lithium, cathode and anode materials and rare earths, and energy resources such as liquefied natural gas and renewable energy.
POSCO Future M aims to strengthen its position as Korea's only supplier of both cathode and anode materials by expanding supply chain solutions and technological capabilities to address trade regulations in major markets.