Hyundai Motor Group weighs 100 billion won investment in POSCO Future M’s Vietnam anode-materials business; moves to secure preferential purchase rights

[Financial News] Hyundai Motor Group is considering an equity investment worth 100 billion won in the synthetic graphite anode-materials plant POSCO Future M is building in Thai Nguyen, Vietnam. Hyundai Motor Group is also seeking preferential purchase rights for the anode materials produced at the plant, which aims to begin mass production in 2028.
On the 3rd, POSCO Future M said it had signed a letter of intent (LOI) with Hyundai Motor Group to cooperate on its synthetic graphite anode-materials business in Vietnam. The LOI includes consideration of an equity investment and efforts to secure preferential purchase rights; it is not a finalized contract. The two companies will also work together on advance development of products that meet electric-vehicle performance requirements and on quality evaluations. POSCO Future M said the LOI had given it a basis to accelerate construction of global production facilities.
Construction of the Thai Nguyen plant began this year with an investment of about 357 billion won. Customer orders for the Phase 1 investment have been secured, and the company is pursuing Phase 2 investment.
Synthetic graphite anode materials are advantageous for improving batteries’ fast-charging performance and lifespan. POSCO Future M said demand has been steadily increasing as electric-vehicle performance improves. The company said supply-chain restructuring has accelerated with the introduction of the United States’ Prohibited Foreign Entity (PFE) requirements and the announcement of Europe’s Industrial Accelerator Act (IAA), making the material a key one for which supply chains need to be diversified.
POSCO Future M is working to bring the supply chain in-house across every stage of producing natural and synthetic graphite anode materials, from raw materials and intermediates to finished products. Last July, it signed a supply agreement for natural graphite anode materials with a Japanese battery maker. In October last year, it signed a 671 billion won contract for natural graphite anode materials with a global automaker, and in March this year it signed a contract worth about 1.0149 trillion won for synthetic graphite anode materials with a global automaker.
POSCO Group signed an MOU with Hyundai Motor Group last April to cooperate in steel and secondary batteries. Last July, it introduced a ‘Triple-core’ framework encompassing steel, strategic resources (lithium, cathode and anode materials, rare earths, and others), and energy resources. POSCO Future M plans to strengthen its business competitiveness with supply-chain solutions and technologies that can address trade restrictions in various countries.
[email protected] Kim Dong-ho Reporter