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| POSCO International's headquarters in Songdo, Incheon / Courtesy of POSCO International |
By Kim Jae-heun
POSCO International has entered the secondary battery materials business in support of its parent firm's effort to specialize in eco-friendly materials, a company official said Monday.
The trading firm signed a long-term supply contract with FARU Graphite in Tanzania, a subsidiary of Australian mining company Black Rock Mining, to receive 750,000 tons of natural graphite over the next 25 years after investing $10 million (13.2 billion won).
FARU Graphite has a graphite mine in Mahenge, Tanzania, which is the world's second-largest by reserves. The Mahenge mine currently has a 25-year mining life. POSCO International plans to secure a supply of natural graphite during the period and provide it to POSCO FutureM, the group's secondary battery producer.
"We are making every effort to secure key minerals at a time when major countries around the world are establishing supply networks that break away from China. The company will continue to invest in the stable procurement of raw materials for secondary battery materials and contribute to the expansion of the group's presence in the sector," a POSCO International official said.
Graphite is a key material used to make anode materials for secondary batteries. It stores lithium ions created from a secondary battery's anode and emits them again to generate electric current.
With the rapid growth of the electric vehicle (EV) market, the demand for graphite is also increasing quickly. By 2035, its demand is expected to reach 6.5 times the mineral's 2022 global supply.
POSCO International plans to expand its business in the secondary battery raw materials sector in response to the group's growing EV industry. The company is also focusing on recycling waste batteries.
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