POSCO Future M Accelerates Graphite Industry Chain Layout: Technology Breakthroughs and Strategic Cooperation Drive Global Competitiveness

South Korea’s steel giant POSCO Group’s battery materials subsidiary POSCO Future M has recently achieved major progress across its graphite value chain—from localizing ultra-high-power graphite electrode technology for steelmaking to securing a KRW 1 trillion anode supply deal and partnering on methane-derived synthetic graphite. These milestones strengthen its leadership in both traditional industrial carbon materials and next-generation battery materials.

On December 12, 2024, POSCO Future M announced it had successfully localized the manufacturing technology for 300mm-diameter high-quality ultra-high-power graphite electrodes, a critical component in steel production. The breakthrough was widely reported by South Korea’s top economic media including Maeil Business Newspaper and Hankyung. Previously, South Korea’s steel industry could not domestically produce these electrodes and imported more than 30,000 tons annually from China, Japan, and India.

The localization was completed through a national project launched in 2020 by South Korea’s Ministry of Trade, Industry and Energy (MOTIE) to develop artificial graphite electrode technology for diameters ≥300mm. POSCO Future M led the consortium, with the Research Institute of Industrial Science & Technology (RIST) in charge of product/process development and plant construction; POSCO MC Materials, POSTECH Accelerator Research Institute, and Kumoh National Institute of Technology contributed to raw material performance, process optimization, and prototype development. After 4 years and 9 months of R&D, the technology was fully domesticated.

In the same day, POSCO in South Korea sent a congratulatory letter to Shandong Hwapeng Precision Machinery Group Co., Ltd. It stated: “The 300mm ultra-high-power graphite electrodes produced using Hwapeng Group’s HP-H(H)KC-SG Series High Efficient Preheating Kneading Cooling System For Special Graphite and HP-CEP Series Carbon Extrusion Press have been successfully tested in steelmaking furnaces. Hwapeng Group’s equipment performed excellently and was indispensable. We sincerely thank all Hwapeng Group colleagues for their years of cooperation and strong support.”

Shandong Hwapeng Precision Machinery Group reaffirmed its commitment to customer value, promising to continue providing high-quality products and services to global clients.

In parallel with its steel materials breakthrough, POSCO Future M scored a landmark deal in electric vehicle (EV) battery materials. On March 16, 2026, the company announced a long-term supply agreement for artificial graphite anode materials with a global automaker, valued at KRW 1,014,945,300,000 (approximately USD 675 million). The five-year contract runs from October 1, 2027, to September 30, 2032, marking a major long-term commitment from a leading automaker.

As POSCO Group’s core arm for new energy, POSCO Future M focuses on R&D and manufacturing of key battery materials including cathodes, anodes, and lithium salts. The large-scale, long-duration contract secures stable future revenue and reinforces its global competitiveness and customer loyalty in the anode market. Artificial graphite remains a mainstream choice for power battery anodes due to high capacity, long cycle life, and strong safety.

Industry analysts noted the five-year agreement underscores leading automakers’ proactive supply chain planning to secure stable battery materials for their EV transition. Long-term partnerships between material suppliers and automakers have become an industry trend, improving visibility and resilience across the value chain

To further upgrade its anode material technology, POSCO Future M has also partnered with Molten Industries Inc., a U.S. startup, to produce high-purity natural graphite from methane. The collaboration aims to reduce reliance on mined natural graphite for EV battery anodes.

Molten has developed a pyrolysis process that decomposes methane into hydrogen and graphite via resistive heating, with a pilot facility in West Oakland, California. Compared to mined graphite, methane-derived graphite contains fewer metallic impurities, greatly simplifying purification and lowering anode production costs. POSCO Future M will process the graphite into spherical graphite for battery anode applications

From localizing high-end graphite electrodes for steelmaking to winning a trillion-won anode supply contract and pioneering methane-based graphite production, POSCO Future M has built a comprehensive graphite value chain covering traditional industrial and new energy applications. Supported by global demand for green steel and EVs, POSCO’s integrated strategy will strengthen its market leadership while driving technological advancement and industrial cooperation worldwide.