[Asia Economy Reporter Hwang Yoon-joo] POSCO Chemical is taking the first step toward the localization of core materials for electric vehicle batteries by breaking ground on an artificial graphite anode material plant.
On the 2nd, POSCO Chemical held a groundbreaking ceremony for the artificial graphite anode material production plant in Donghae-myeon, Pohang City. About 100 customers and business officials attended the event, including POSCO Chairman Choi Jeong-woo, LG Chem President Kim Myung-hwan, Gyeongbuk Governor Lee Cheol-woo, Pohang Mayor Lee Kang-deok, POSCO Chemical President Min Kyung-jun, and POSCO New Growth Division Head Oh Kyu-seok.
At the groundbreaking ceremony, POSCO Chairman Choi Jeong-woo said, "As the era of electric vehicles is about to fully arrive, we have directly developed and started mass production of materials that required localization. This is a very important leap for realizing an industrial powerhouse Korea, securing the competitiveness of the domestic battery industry, and the future growth of the POSCO Group."
The artificial graphite anode material plant will be built on a 78,535㎡ site within the Pohang Blue Valley National Industrial Complex with an investment of 217.7 billion KRW. The plant, with an annual production capacity of 16,000 tons, is planned to be constructed in phases, aiming for completion in 2023. The 16,000 tons of anode material can supply approximately 420,000 electric vehicles based on a 60kWh battery capacity.
Anode material is one of the core materials of batteries and is divided into artificial graphite-based and natural graphite-based types depending on the raw materials. Artificial graphite anode material is manufactured by increasing crystallinity at high temperatures, resulting in a more uniform and stable material structure compared to natural graphite products. This makes it an essential material for electric vehicle batteries, enabling long lifespan and fast-charging performance.
By localizing artificial graphite anode material, which had been entirely imported from countries such as Japan and China, the competitiveness of the domestic battery industry has been significantly enhanced. POSCO Chemical has also achieved complete localization from raw materials to processing by producing needle coke, the raw material for artificial graphite, through its subsidiary PMC Tech. This not only ensures stable raw material supply but also advances the carbon material business value chain and maximizes added value.
This business entry also holds great significance as it establishes a foundation to actively respond to the rapid growth of the electric vehicle market, which can be called a quantum jump. POSCO Chemical is expanding its portfolio to include artificial graphite anode material following high-nickel cathode materials and natural graphite anode materials, further strengthening its market position as a global comprehensive secondary battery materials company.
Despite increased global economic uncertainties due to COVID-19 and other factors, it is evaluated that POSCO Group’s research and development and proactive investment in the secondary battery materials business, promoted as a new growth engine, have enabled continued future growth.
POSCO Chemical explained that since the global electric vehicle market is expected to grow rapidly at an average annual rate of over 25%, from about 3 million units in 2020 to more than 9.3 million units in 2025, continued investment is necessary to timely respond to the future electric vehicle era.
POSCO Chemical plans to accelerate next-generation technology development through its Secondary Battery Materials Research Center to prepare for future demand. Additionally, it will continuously expand investment to increase global market share and sustain growth by increasing domestic annual production capacity to 105,000 tons of natural graphite anode material, 16,000 tons of artificial graphite anode material, and 90,000 tons of cathode material by 2023.
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