South Korean battery materials manufacturer Posco Future M is to build an artificial graphite anode material plant in Vietnam as part of its strategy to expand global supply and diversify battery material supply chains.
The company has approved an investment of approximately KRW357 billion (around US$250–270 million) to construct the facility in Thai Nguyen, an industrial hub in northern Vietnam. Construction is scheduled to begin in the second half of 2026, with mass production targeted for 2028.
The plant will be developed on a site capable of supporting up to 55,000 tonnes of annual production capacity, with further expansion planned in phases as additional customer orders are secured.
Artificial graphite anode materials
Artificial graphite anode materials are a critical component of lithium-ion batteries, contributing to improved fast-charging performance and longer cycle life. Demand for the material is increasing, but supply is currently heavily concentrated in a limited number of countries, prompting efforts across the battery sector to diversify sourcing.
Posco Future M currently operates an artificial graphite anode plant in Pohang, South Korea, with an annual capacity of around 8,000 tonnes. The company said it plans to leverage manufacturing expertise from its domestic operations to produce cost-competitive materials at the new Vietnamese facility for supply to global customers.
Vietnam was selected due to its competitive cost base, including lower electricity, labour and logistics costs, as well as established industrial infrastructure and favourable trade access to key markets such as the United States and Europe.
The investment reflects broader industry trends, with battery manufacturers and materials suppliers seeking to localise production and reduce reliance on dominant supply regions, particularly in response to evolving regulatory frameworks in the US and Europe targeting critical materials.
Posco Future M said it is in discussions with customers across Korea, North America and Europe for both cathode and anode materials, as it looks to strengthen its position as a global supplier of battery materials.
