POSCO Chemical’s anode material plant in Sejong City. (Photo: POSCO Chemical)

EV batteries have the potential to be an economic engine every bit as important for the nation’s economy as semiconductors.

One day EV batteries may even replace the seconders for industrial prominence, Korea’s mainstay industry. It’s plausible on the condition that core materials for the production of batteries is localized. Korea badly needs localization in the wake of Japan’s restrictions on trade in 2019.

POSCO Chemical, specializing in cathode and anode materials, has localization in mind with massive investments. Its goal is to become the world’s No. 1 secondary battery materials maker.

POSCO Chemical put into operation a first phase, anode material plant with an annual capacity of 20,000 tons in Sejong City last November. The company has begun to build a second phase, anode material plant with an annual capacity of 22,000 tons.

 The company plans to expand its annual production capacity to 105,000 tons by 2023 by building an additional plant on what is currently a parking lot. The figure is equivalent to the production of about 1.75 million EV units, each outfitted with a 600KWh battery.

Jung Dae-heon, head of the Anode Material Office at POSCO Chemical said EV car and secondary battery demand is rising faster than expected, and aggressive expansion is needed to dominate the market in advance.

Anode material is a key material for the lifespan of secondary batteries, and graphite is essential for producing anode material.

China, rich with the mineral resources, and Japan, rich with heat treatment technology, have dominated the anode material market. Even though the nation fully depended on imports 10 years ago, POSCO Chemical has seen production rising and localization standing at 50 percent.

POSCO Chemical has raised its market share by outbidding juggernauts Mitsubishi Chemical and Hitachi of Japan.
The company is taking nothing for granted. A report on the pessimistic outlook of POSCO Chemical catching up with Chinese and Japanese companies came from POSCO Group.

But POSCO Chemical’s investment in the anode material segment is based on confidence that POSCO, a latecomer, has grown into a global steelmaking leader, and calls for contributing to state through localization of materials.

Support from POSCO Chairman Choi Jeong-woo, who once served as president of POSCO Chemical, has become a boon for expanding the anode material business.

President Min Kyung-jun of POSCO Chemical said what POSCO can do best is to operate equipment efficiently and raise quality. POSCO, which has been studying coal for a long period, has acquired intrinsic technology, he added.

The plant in Sejong City has proved the competitiveness of POSCO Chemical.

A plant whose size is 138mx60 m, bigger than that of a soccer stadium, is filled with eight production lines, but few people are seen.

All processes, except ones of putting raw materials and packing, are automated, so only eight crew members are stationed there. The smart factory has led to raising production and quality, which has outrun Chinese and Japanese juggernauts.

POSCO Chemical has begun to localize artificial graphite for producing anode materials. Last month, the company disclosed a 317.7 billion investment plan to build an artificial graphite plant for producing anode material.

The plant will be set up at the state-run Pohang Blue Valley Industrial Complex. The company has entered African markets to secure natural graphite materials. It also plans to conduct M&As to acquire artificial graphite plants.

The late honorary chairman Park Tae-joon of POSCO established POSCO under the management catchphrase “Contribution to State through Steel-making.” POSCO Group is progressing under the cause of contributing to state through localizing materials.

President Min said POSCO Chemical aims to raise its share and sales in the global cathode material and anode material segments to 20 percent and 17 trillion won by 2030.