Posco Chemical breaks ground on artificial graphite anode facility in Pohang

Home > Business > Industry

print dictionary print

Posco Chemical breaks ground on artificial graphite anode facility in Pohang

Automatic robots manufacture artificial graphite anodes, the key material for EV batteries, at Posco Chemical's Pohang facility in North Gyeongsang. [POSCO CHEMICAL]

Automatic robots manufacture artificial graphite anodes, the key material for EV batteries, at Posco Chemical's Pohang facility in North Gyeongsang. [POSCO CHEMICAL]

 
Ground was broken for Posco Chemical’s artificial graphite-based anode facility in Pohang, North Gyeongsang, the company said Wednesday. 
 
The facility will have 10,000 tons of annual capacity, and will start production in the second half of 2024. 
 
That will boost its total capacity to 18,000 tons which is enough to make batteries for 470,000 electric vehicles (EVs). The company has already been operating an 8,000-ton facility there.
 
Graphite is a core raw material of anodes, one of four critical components to make lithium-ion batteries. 
 
Artificial graphite accounted for more than 83 percent of the total anodes market as of 2022, according to data from the Korea Trade-Investment Promotion Agency. It is known to provide longer battery expectancy and reduced charging time compared to natural graphite.

 
Posco Chemical is the first in Korea to develop artificial graphite. China currently dominates the artificial graphite market, with about 90 percent of the share. The world's six largest graphite producers are headquartered in China.
 
Posco Chemical already secured orders. It signed a 939.3 billion won ($689 million) graphite deal with Ultium Cells in December, with the supply lasting for six years starting this year. 
 
Ultium Cells is a 50-50 joint venture between LG Energy Solution and General Motors, and building three battery plants in the United States. 
 
Under the U.S. Inflation Reduction Act, buyers of EVs assembled in the United States are eligible for a $7,500 tax credit for vehicles purchased after Aug. 16, 2022. The rule extends to battery component rules, which will be introduced in March. 
 
Forty percent of critical-mineral value will have to come from the United States or countries that the United States has signed free trade agreements with to qualify for $3,750 of the credit.
 
That number increases 10 percentage points a year to reach 80 percent by 2027.
 
Fifty percent of battery-component value will have to come from the United States to qualify for another $3,750 of the tax credit. That number will increase 10 percentage points a year to 100 percent by 2029. 
 
To qualify for the subsidy, a vehicle must be completely free of Chinese-made components from 2024 and free of Chinese critical minerals from 2025. 

BY SARAH CHEA [chea.sarah@joongang.co.kr]
Log in to Twitter or Facebook account to connect
with the Korea JoongAng Daily
help-image Social comment?
s
lock icon

To write comments, please log in to one of the accounts.

Standards Board Policy (0/250자)