POSCO Chemical Acquires 13% Stake in Qingdao Zhongse, China

Securing Competitive Battery Material Raw Materials
by Receiving Anode Material Supply Since 2022

[Asia Economy Reporter Hwang Yoon-joo] Posco Chemical is accelerating the establishment of a value chain in the anode material business by acquiring a 13% stake in a Chinese graphite processing company.

Posco Chemical announced on the 9th that it has acquired a 13% stake in Qingdao Zhongse, a Chinese graphite processing company, and will receive spherical graphite necessary for anode material production starting from 2022.

Qingdao Zhongse is a company with an annual spherical graphite production capacity of 25,000 tons and is a subsidiary of Haida, the largest graphite raw material company in China. Spherical graphite is an intermediate raw material processed from graphite ore into a form suitable for high-quality anode material manufacturing. Ensuring uniform and stable quality from the raw material processing stage during anode material production significantly affects battery charging speed and lifespan.

Based on this investment, Posco Chemical plans to expand its anode material production capacity to 44,000 tons this year, 172,000 tons in 2025, and 260,000 tons by 2030.

According to market research firm SNE Research, due to the rapid growth of electric vehicles, global anode material consumption is expected to grow at an average annual rate of over 22%, from 273,000 tons in 2020 to 2,054,000 tons in 2030.

Posco Chemical was the first in Korea to localize anode materials in 2010, securing customers including the three major domestic battery companies as well as the US-based Ultium Cells. In particular, it has demonstrated its technological prowess by independently developing low-expansion anode materials that can increase charging speed, thereby increasing its market share.

Meanwhile, Posco Chemical began localizing pitch for anode material coating in August, and Posco secured raw materials for anode materials by acquiring a 15% stake in Black Rock Mining, which owns a graphite mine in Tanzania, in January of this year.