Hyundai mulls investment in Posco battery anode plant in Vietnam

Hyundai mulls investment in Posco battery anode plant in Vietnam

Posco Future M announced on November 3 that the company signed a Letter of Intent with Hyundai Motor Group to explore an equity investment worth 100 billion won ($74.4 million) in its battery anode plant in Vietnam.

Photo: Posco Future M

As reported by The Korea Herald, Hyundai Motor Group will consider taking a stake in the project and seek priority purchasing rights for its synthetic graphite anode materials. The companies also agreed to collaborate on early-stage product development and quality assessments to meet electric vehicle performance requirements.

Through the proposed collaboration, Posco Future M will speed up construction of its overseas production facility. Meanwhile, Hyundai Motor Group will secure a more stable supply of critical battery materials.

The two companies will work towards concluding investment and procurement agreements, while jointly developing and assessing the quality of artificial graphite anode materials for Hyundai Motor Group’s electric vehicles.

Posco Future M was granted an investment registration certificate and enterprise registration by Thai Nguyen authorities for its plant at Song Cong II Industrial Park on April 23.

Commercial operations are scheduled for the fourth quarter of 2028. Once operational, the plant is expected to produce up to 46,000 tonnes of artificial graphite annually, generating more than $150 million in yearly revenue.

Posco Future M has already secured customer orders for the project's initial phase and is now exploring a second investment phase to expand production.

Synthetic graphite anodes play a key role in improving battery performance and lifespan. As a result, they are increasingly important for carmakers looking for higher-performance EV batteries.

VIR