POSCO Future M to diversify battery materials, avoid supply chain risk

Natural graphite Anodes [Courtesy of POSCO Future M]

South Korea’s POSCO Future M is ramping up its efforts to secure the battery material technology that will play a central role in its recently established technology strategy center. The company aims to diversify the range of cathode and anode materials, core elements in secondary batteries, as a strategic measure to mitigate potential supply chain risks.

According to industry sources on Wednesday, POSCO Future M is diversifying its portfolio of anode materials, ranging from premium to mid- to low-cost products, targeting both the premium and affordable segments in the electric vehicle battery market.

Following the first mass production of single-crystal cathode materials for high-performance EVs in Korea, the company is now driving the commercialization of manganese-rich high-voltage mid-nickel-lithium phosphate (LFP) cathode materials for mid- to low-priced EVs.

In pursuit of the “dream battery,” or solid-state batteries, POSCO Future M collaborates with battery manufacturers to jointly develop cathode materials. Given the solid state of the electrolyte in solid-state batteries, the surface treatment technology for cathode materials plays a crucial role.

As the sole manufacturer of anode materials in Korea, POSCO Future M has set a goal to lead the market by establishing an anode material supply chain and a comprehensive production system. Plans include expanding the production of natural graphite with a low expansion rate and localizing graphite raw materials to address the U.S. Inflation Reduction Act (IRA). Dependency on China for natural graphite remains high, and prompted POSCO International, a fellow POSCO Group subsidiary, to develop graphite mines in Tanzania in order to expand its role in graphite processing.

POSCO Future M also plans to develop an eco-friendly and cost-effective new processing method for synthetic graphite.