19 November 2024
POSCO Future M, the only domestic producer of graphite-based anode materials, pursuing diversification of raw material supply chains
Second Vice Minister of Foreign Affairs Kang In-sun visited the POSCO Future M Sejong anode material plant on the 18th, stating, “The government will actively support the recovery of operation rates.”
Vice Minister Kang visited the plant to assess the status of supply chain development for anode materials, a key component of secondary batteries, and listen to challenges faced by the industry. This comes amid growing attention to future battery industry supply chain policies following the U.S. presidential election.
Second Vice Minister Kang emphasized, “Natural graphite and anode materials are among the critical minerals with extremely high external dependence, necessitating urgent supply chain diversification. The government will actively assist companies like POSCO Future M, which are facing difficulties due to declining operation rates, to overcome these challenges and turn them into opportunities through recovery efforts.”
Vice Minister Kang also chairs the Minerals Security Partnership (MSP), which was launched in June 2022 to secure and diversify global critical mineral supply chains. South Korea will serve as MSP chair for one year starting July 1, 2024.
The MSP currently includes 14 countries (South Korea, the U.S., UK, Japan, Canada, Sweden, France, Australia, Finland, Germany, Norway, Italy, India, and Estonia) as well as the EU. South Korea plans to lead cooperation among member countries to ensure that the ongoing MSP pilot projects deliver tangible and concrete outcomes during its chairmanship.
POSCO Future M, the only domestic producer of graphite-based anode materials, ranks among the top 10 global producers outside of China by production volume. However, it has recently faced a sharp decline in operation rates due to aggressive price competition from Chinese companies, threatening its position within the top 10.
Thus, the sustained maintenance and development of POSCO Future M’s anode material business are considered essential for the localization of domestic anode materials and the diversification of global supply chains. There is growing consensus on the need for active support and cooperation from both the South Korean government and the international community.
In light of the urgent need to secure a global supply chain for anode materials, the Ministry of Foreign Affairs is expected to develop concrete global cooperation measures for fostering the anode material industry through future MSP activities.
In March this year, POSCO Future M signed a contract with Australian mining company Syrah Resources to supply up to 60,000 tons of graphite annually from Mozambique starting in 2025. Additionally, POSCO International, part of the POSCO Group, signed a joint investment agreement for the Mahenge graphite mine in Tanzania, securing an additional annual supply of up to 60,000 tons of graphite.
https://newsroom.posco.com/kr/강인선-외교부-2차관-포스코퓨처엠-음극재-공장-가동/
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