South Korean battery material manufacturer POSCO Future M intends to build a production facility for artificial graphite anode materials in Vietnam. The move is in response to growing demand and increasing geopolitical risks in the global supply chain for battery raw materials.
Series production from 2028
The plant is estimated to cost around the equivalent to 243.4 million US dollars and will be built in Thai Nguyen in northern Vietnam. Construction is scheduled to begin in the second half of 2026. Series production is expected to begin in 2028. The plant will have an annual production capacity of up to 55,000 tons. According to the companyʼs plans, further expansions will follow if additional orders are secured.
New regulatory requirements
POSCO already operates a plant for artificial graphite in Pohang in South Korea with an annual capacity of 8,000 tons. The location in Vietnam was chosen in part because of the countryʼs cost structures and infrastructure. Compared to other locations, investments, electricity prices, labor costs, and logistics are considered favorable in Vietnam. Meanwhile, new regulatory requirements in major markets are changing the demands on battery supply chains. For example, in the United States, the Inflation Reduction Act (IRA) introduced regulations on “prohibited foreign entities,” while in Europe, the Critical Raw Materials Act aims to reduce dependence on individual supplier countries.
Contracts in USA and Europe?
Against this backdrop, POSCO is working to cover the entire value chain for natural and artificial graphite anode materials. POSCO Future M is currently negotiating supply contracts with battery manufacturers and automotive companies in Korea, North America, and Europe.
