[Bojo, Battery] "Independence from China"... Anode Materials Triggering the Graphite War

Anode Materials Determining Secondary Battery Charging Speed and Lifespan
Graphite: Affordable and Easily Accessible, a Dominant Material
80% of Global Graphite from China... Rise of Silicon-Based Materials

Editor's Note'Bojo, Battery' is a series that takes a closer look at the battery industry, which has emerged as the center of next-generation advanced industries. It examines the agile movements, strategies, and conflicts among governments and companies worldwide vying to dominate the battery manufacturing ecosystem. We will also cover the technological competition to create safer and longer-lasting batteries. Our goal is to provide a 'support' function that enhances and assists readers' and investors' understanding of the battery industry. We will share battery stories that are easy to approach.

The most important material in batteries is undoubtedly the cathode active material. As important as it is, its types are also diverse. The mixture of lithium, cobalt, nickel, manganese, aluminum, and others varies greatly. Currently, lithium-ion dominates, but sodium and sulfur are gaining attention as next-generation cathode materials.

Conversely, there is still one material made from a single raw material: the anode active material. The material used for anodes is graphite. Metal-based anode materials such as lithium can also be used. However, graphite has an overwhelming advantage in terms of availability and price, making the formula 'anode material = graphite' unlikely to change. Therefore, the competition for securing graphite supply chains and developing next-generation anode materials among countries is fiercer than the competition in cathode material development.

The only company producing anode materials domestically in Korea is POSCO Future M. Originally producing refractory materials with high durability at high temperatures like a blast furnace in a steel mill, POSCO Future M entered the anode material business for the first time in Korea in 2011. POSCO Future M merged with the cathode material company POSCO ESM in 2019, marking the beginning of POSCO Future M's battery material business with anode materials.

Anode materials in secondary batteries store lithium ions from the cathode and release them to allow current to flow through the external circuit. The performance of anode materials determines the charging speed and lifespan of secondary batteries.

Graphite, the raw material for anode materials, is a mineral composed of pure carbon with high heat resistance and electrical conductivity. It is especially used as an anode material because of its regular layered structure, which makes it easy to store lithium ions. Currently, countries producing graphite include China, Mozambique, and Brazil, with China producing over 80% of the world's graphite supply.

Unlike natural graphite mined from nature, there is also artificial graphite made by applying high heat to by-products such as coke and pitch from the steelmaking process. Artificial graphite has lower density and electrical conductivity compared to natural graphite and is relatively more expensive. However, its crystal structure changes less during repeated charging and discharging, resulting in a lifespan 2 to 3 times longer than natural graphite.

In particular, artificial graphite is attracting attention from many countries and companies because it is free from supply chain risks dependent on mining regions.

Korean battery companies still largely depend on China for graphite, the anode material. According to the Ministry of Trade, Industry and Energy, Korea imported $241 million worth of artificial and natural graphite for secondary battery anode materials in 2022. Of this, 94% was imported from China, indicating a high dependency. This is a weakness as companies are vulnerable to local conditions in China.

Last year, China designated graphite as a controlled export item, making supply chain diversification a hot topic. Battery companies are now working to secure independent supply chains.

LG Energy Solution plans to receive 2,000 tons of natural graphite from Australian graphite specialist Syrah starting in 2025 and is jointly developing artificial graphite with Australian battery material and equipment company Novonix. Samsung SDI also plans to receive up to 10,000 tons of natural graphite anode material annually from Syrah starting in 2026.

SK On will receive natural graphite from its U.S. anode material partner Westwater Resources starting in 2027. After signing a memorandum of understanding with Syrah for natural graphite supply, it is also jointly developing anode materials with Urbix.

POSCO Future M currently mass-produces 74,000 tons of natural graphite in Sejong and 8,000 tons of artificial graphite anode materials in Pohang. In Pohang, artificial graphite production capacity is planned to expand to 18,000 tons within this year and increase to 370,000 tons annually by 2030. It is also researching next-generation materials such as silicon-based and lithium metal anode materials.

The battery industry is paying attention to silicon anode materials as substitutes for graphite. Silicon anode materials have higher capacity per unit than graphite anode materials and are environmentally friendly. According to the Korea International Trade Association, in 2022, 73% of lithium-ion battery anode materials used only graphite, while anode materials including silicon accounted for 27%. Following the trend of many battery companies switching to silicon anode materials, the proportion of graphite anode materials is expected to decrease to 53% by 2035.