Largest Contract Since Entering the Anode Material Business
POSCO Future M has signed its largest-ever contract to supply natural graphite anode materials to a global finished vehicle manufacturer. This achievement is seen as a tangible result of the so-called 'de-China' strategy aimed at reducing reliance on China.
On October 14, POSCO Future M announced through a public disclosure that it had signed a contract worth 670 billion won to supply natural graphite anode materials to a global automotive company. The supply period is set for four years, from 2027 to 2031, with the possibility of extension through further negotiations. The company stated, "The counterparty is a new global customer," and added, "We are withholding disclosure for business confidentiality reasons."
This contract marks the largest since POSCO Future M entered the anode material business in 2011. After supplying the three major domestic battery companies-LG Energy Solution, SK On, and Samsung SDI-the company has now expanded its clientele to include global finished vehicle manufacturers, which is seen as strengthening both export diversification and the foundation for business growth.
The anode material market is virtually dominated by Chinese companies. According to SNE Research, a secondary battery market research firm, Chinese companies accounted for 95% of the global anode material market share in the first half of this year. Korean companies' share remains at about 2.8%, but they are effectively regarded as the only 'non-Chinese' alternative.
This contract is particularly significant as it was signed amid escalating U.S.-China tensions. The 'One Big Beautiful Bill (OBBBA),' signed by U.S. President Donald Trump in July, includes provisions restricting the use of Chinese battery raw materials within the United States. Starting next year, if the proportion of Chinese raw materials exceeds 40%, companies will be excluded from incentives such as tax credits. After 2030, the proportion of non-Chinese materials must exceed 85%. In addition, the Chinese government has announced plans to restrict exports of key battery materials, further increasing supply chain instability for the global automotive and battery industries. The need to diversify supply sources, especially in the anode material sector where dependence on China is high, is increasingly emphasized both inside and outside the industry.
POSCO Future M, together with the POSCO Group, has been working to internalize an independent supply chain covering every stage from raw materials to material production. The company is importing graphite ore from Africa, processing it into intermediate materials at the spherical graphite plant currently under development in the Saemangeum National Industrial Complex in North Jeolla Province, and establishing a system to produce finished products at the Sejong anode material plant. The Saemangeum spherical graphite plant is scheduled to begin operations in 2027.
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