SEOUL [South Korea]: POSCO Chemical Co. announced the start of construction on its second factory for synthetic Graphite anode materials at its manufacturing complex in Pohang, South Korea. The facility is located 272 kilometers southeast of Seoul and is expected to be a major benefit to the country's industrial sector.

Electric vehicle production is set to receive a major boost next year, as plans are in place to increase the production capacity of key anode materials by 18,000 tons annually. This would be sufficient to power 470,000 EVs with up to 60 kilowatt hours of power each.

EV batteries rely heavily on anodes, which are essential components that determine the battery life span, charging speed and energy density. Synthetic Graphite is the most widely used type of anode, as it provides greater stability due to its high temperature production process, resulting in a more durable battery with faster charging capabilities.

POSCO Chemical successfully completed the construction of their 8,000-ton phase 1 synthetic Graphite anode plant in December 2021 – a major milestone for the South Korean company that had been striving to localize production of a material highly dependent on Chinese imports. It marks a new era of independence and proudly cements POSCO Chemical as the first South Korean enterprise to achieve successful localization.

POSCO Chemical is leveraging their experience in both cathode and anode production to accelerate the production of electric vehicle (EV) battery materials. This move will help support the growing demand for more sustainable, eco-friendly transportation options.

POSCO Chemical recently secured a 939.3 billion-won ($763.1 million) deal to provide artificial Graphite to Ultium Cells LLC, a joint venture between LG Energy Solution Ltd. and General Motors Co., for six years starting in 2023. In addition to this, the company also landed two cathode material provision contracts worth a combined $17.8 billion from GM.

POSCO Chemical has announced plans to significantly expand its global production capacity of anode materials by 2030. Currently, the company is producing 82,000 tons of the material and hopes to increase that number to 320,000 tons by the end of the decade.