Seoul:POSCO Future M Co. announced that Hyundai Motor Group is contemplating an investment in its artificial graphite anode material plant located in Vietnam. This initiative involves securing priority purchase rights.
According to Yonhap News Agency, the plan was formalized through a letter of intent signed by both companies. Hyundai Motor Group is considering a 100 billion won (approximately US$74.5 million) investment as part of the project's second phase, which would grant them priority purchase rights.
The Vietnamese authorities have approved POSCO Future M's project, marking it as the company's first overseas production base for this specific battery component. This strategic move aims to ensure Hyundai Motor Group a stable supply of battery materials necessary for global markets.
The demand for artificial graphite, crucial for enhancing battery fast-charging performance and lifespan, is increasing. However, the supply remains limited to a few countries, highlighting the need for diversification in sourcing. POSCO Future M recently secured a significant contract in March, amounting to 1.01 trillion won, to supply artificial graphite anode materials to a global automaker.
POSCO Future M operates as the battery materials division of POSCO Holdings Inc., a leading steelmaker in South Korea.