Posco Future M secures Vietnam approval for anode plant

Posco Future M has secured regulatory approval for its synthetic graphite anode project in Vietnam, clearing the way for full-scale overseas expansion as it moves to strengthen its global battery materials supply chain.

The company said Thursday it received an investment registration certificate from Thai Nguyen Province during the Korea-Vietnam Business Forum in Hanoi, marking the completion of key approval procedures required for foreign investment.

With the approval in place, Posco Future M plans to begin construction of its first-phase plant later this year at the Song Cong 2 Industrial Complex, with mass production targeted for 2028. The company will invest about 357 billion won ($240 million) in the initial phase and has already secured customers for the output, with additional capacity expansion to be considered as new orders are secured.

The project marks Posco Future M’s first overseas production base for anode materials, a key step toward diversifying its manufacturing footprint and enhancing cost competitiveness.

Synthetic graphite anodes — critical materials that improve fast-charging capability and battery lifespan — are seeing steady global demand growth. However, supply remains heavily concentrated in a limited number of countries, making diversification increasingly important amid rising trade barriers and protectionist policies.

Posco Future M has been expanding supply discussions with multiple global customers while accelerating efforts to build a more resilient supply chain. Vietnam has emerged as a strategic production hub, offering advantages in power, labor and logistics costs, as well as a favorable trade environment with key markets such as the US.

Thai Nguyen Province, a major industrial cluster in northern Vietnam, provides proximity to Hanoi and access to the port city of Hai Phong, enabling efficient sourcing of raw materials and export of finished products. The region is also home to a growing base of foreign manufacturers, supporting talent availability and industrial synergies.

Leveraging manufacturing expertise accumulated in Korea, Posco Future M plans to produce cost-competitive synthetic graphite anodes in Vietnam for supply to global automakers and battery makers.

The company has been steadily building its anode materials business since localizing natural graphite production in 2011 and establishing a synthetic graphite production system in Pohang in 2021.

Amid accelerating global supply chain realignment — including new regulatory frameworks in the US and Europe — Posco Future M is pushing to internalize its supply chain across raw materials, intermediate processing and final production. This strategy positions the company as a potential alternative supplier for global customers seeking to diversify away from concentrated supply sources.

The company has also been broadening its customer base. Last year, it signed a supply agreement with a major Japanese battery maker, followed by additional contracts with global automakers worth 671 billion won for natural graphite anodes and about 1.01 trillion won for synthetic graphite anodes.

Posco Group, which has operated in Vietnam since opening a Hanoi office in 1991, plans to expand its footprint beyond steel into battery materials, reinforcing economic cooperation between the two countries while strengthening its presence in Southeast Asia’s fast-growing industrial ecosystem.