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Photo = POSCO Future M Plant |
[Alpha Biz= Kim Jisun] Seoul, October 14 — POSCO Future M, a key secondary battery materials unit of POSCO Group, announced that it has signed a ₩671 billion (approx. $490 million) supply agreement with a global automaker for natural graphite anode materials over the next four years — the largest long-term order since the company entered the anode materials business in 2011.
According to POSCO Future M’s filing, the contract runs from October 2027 through September 2031, with an option to extend by mutual agreement. If extended by an additional six years as anticipated by industry analysts, the total contract value could reach ₩1.7 trillion (approx. $1.2 billion) over a ten-year period.
The company did not disclose the client, citing confidentiality agreements.
Strategic Significance Amid U.S.-China Supply Chain Realignment
Industry observers note that the deal underscores the growing importance of supply chain diversification among global automakers amid intensifying U.S.-China trade and technology tensions.
As Western companies accelerate efforts to “de-China” their supply chains in battery materials and critical minerals, POSCO Future M’s enhanced autonomy and vertical integration are expected to boost its strategic value.
Building a Complete Non-China Graphite Supply Chain
POSCO Future M is currently constructing a natural graphite processing plant in Saemangeum National Industrial Complex in North Jeolla Province, scheduled for completion in 2027.
The plant will process African-sourced graphite, which will then be sent to the company’s Sejong plant for final anode material production — completing what POSCO describes as a fully non-China graphite supply chain.
The newly signed contract covers anode materials derived from this African graphite supply, meaning the customer effectively secured future production capacity two years before mass production begins.
According to SNE Research, all of the world’s top 10 anode material suppliers by shipment volume last year were Chinese, with a combined market share exceeding 80%. Among non-Chinese players, POSCO Future M ranked 11th with a 1.3% share, making it the leading alternative outside China in the global anode materials market.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
