Posco Future M, Hyundai Motor Group join hands on artificial graphite anode materials with W100b equity investment under review

Posco Future M announced Tuesday that it will discuss investment and cooperation plans with Hyundai Motor Group for its artificial graphite anode material project in Vietnam.

The two companies signed a letter of intent (LOI) Tuesday to cooperate on the Vietnam artificial graphite anode material project. Under the agreement, Hyundai Motor Group will review a 100 billion won ($74.6 million) equity investment in Posco Future M's Vietnam venture and seek to secure preferential purchase rights for the material. The two companies also plan to cooperate on the advanced development and quality evaluation of artificial graphite anode products tailored to electric vehicle performance requirements.

The companies said the LOI will allow Posco Future M to accelerate construction of its global production facilities, while Hyundai Motor Group expects to build a stable battery material supply chain backed by those preferential purchase rights. Posco Group signed an MOU with Hyundai Motor Group in April last year to pursue mutual cooperation in the steel and secondary battery sectors, and the two sides have been exploring ways to work together since.

Artificial graphite anode material improves rapid-charging performance and battery lifespan, and demand has grown steadily as electric vehicle capabilities advance. The material has emerged as a key component requiring supply chain diversification as global supply chains are restructured more rapidly, driven by the introduction of Prohibited Foreign Entity requirements in the United States and the announcement of the Industrial Acceleration Act in Europe.

Posco Future M broke ground on an artificial graphite anode material factory in Thai Nguyen, Vietnam this year, investing about 357 billion won in the project. The company has completed customer supply contracts for its first-phase investment, with mass production targeted for 2028, and is currently pursuing a second phase. It signed a natural graphite anode material supply contract with a Japanese battery maker in July last year, a 671 billion won natural graphite anode supply contract with a global automaker in October last year, and an approximately 1.01 trillion won artificial graphite anode supply contract with another global automaker in March this year.

In July, Posco Group unveiled its future growth strategy, announcing plans to build a "triple core" framework encompassing industrial resources (steel), strategic resources (lithium, cathode and anode materials, rare earths and others) and energy resources (LNG, renewable energy). Posco Future M said it will strengthen its position as the group's core strategic-resources company by enhancing business competitiveness through supply chain solutions and technological capabilities that can respond to trade regulations across different countries.