Posco Future M's 300-millimeter-diameter electrodes (Posco Future M)

Posco Future M, the materials unit of Posco Group, said Thursday it has completed production technology for graphite electrodes, which are an essential material in steelmaking that Korea has solely relied on imports for so far.

The carbon-based electrodes are used in melting metal scraps or refining them during the steelmaking process in an electric furnace, as they are inserted into the furnace and produce heat via an electric current.

Larger poles with higher electrode density increase electricity capacity and enhance production efficiency. With the latest breakthrough, Posco is now capable of producing electrodes that are 300 millimeters in diameter.

Korea imports over 30,000 tons of graphite electrodes a year, mostly from China and India. Concerns have been raised that local manufacturers could face difficulties amid geopolitical risks and supply chain disruptions.

Posco added that demand for graphite electrodes is also on the rise globally, as an increasing number of coal furnaces are being replaced by electric furnaces as part of the industrywide efforts to reduce carbon emissions.

“The latest breakthrough comes amid public-private consensus and close cooperation on the localization of graphite electrodes,” said an official of Posco Future M. “We expect to contribute to stabilizing the Korean steel industry’s supply chain for key materials and raising its global competitiveness.”