POSCO Future M begins local production of anode coating material

[Courtesy of POSCO Future M]

POSCO Future M Co. and OCI Company Ltd. jointly began their first domestic production of pitch, an essential coating material in the production of secondary cells. The annual production output is estimated at 15,000 tons, equivalent to the manufacturing capacity for 3 million electric vehicles (EVs).

P&O Chemical, a joint venture founded by POSCO Future M Co. and OCI, said in a statement that it held the official opening ceremony of its new factory to produce pitch in South Chungcheong Province on Monday.

Pitch, a carbon material made through heat treatment of residue obtained by distilling petroleum, is used to coat the surfaces of anodes, one of the critical components in battery cells.

The coating material has high resistance to high temperatures, and pitch-based anodes make the batteries highly efficient and durable. POSCO Future M had to rely on imports from China and Germany to meet pitch demand, but thanks to its partnership with OCI, the company recently became the first domestic manufacturer of the coating material. The joint venture will supply its pitch to POSCO Future M, and also plans to begin global sales.