November 21, 2024

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Second Vice Foreign Minster Kang In-sun (second from left) speaks with an official from Posco Future M at the company’s anode materials manufacturing in Sejong on Monday. (Posco Future M)

Second Vice Foreign Minister Kang In-sun visited Posco Group’s battery materials subsidiary Posco Future M’s anode manufacturing plant in Sejong, pledging to support the facility in recovering its production levels.

While touring the site Monday, Kang said, “Natural graphite and anode materials are critical minerals with high reliance on imports, underscoring the urgent need to diversify the supply chains. The government will actively support companies, including Posco Future M, which are facing mounting challenges due to declining operating rates -- to restore them and turn this crisis into an opportunity.”

Kang serves as a chair of the Minerals Security Partnership, a global initiative launched in June 2022 aimed at securing and diversifying global supply chains for critical minerals. He is expected to voice concerns about major countries, including the US, moving toward protectionist trade policies, sources said.

The MSP currently involves 14 countries — South Korea, the US, the UK, Japan, Canada, Sweden, France, Australia, Finland, Germany, Norway, Italy, India and Estonia -- and the European Union. As the second chair after the US, the South Korean government is likely to develop concrete global cooperation strategies to foster the anode material industry with MSP member countries.

Posco Future M, the only domestic producer of graphite-based anode materials, ranks among the top ten global suppliers, excluding China. However, it recently faced a steep drop in operating rates due to aggressive pricing strategies by Chinese suppliers.

“There is a growing consensus on the need for active support and cooperation from the South Korean government and the international community for diversifying the global supply chain on anode materials. On that note, it is essential to maintain and further boost our anode manufacturing business,” stated Posco Future M.

In its efforts to expand mineral sourcing, Posco Future M signed an agreement in March with Australian mining firm Syrah Resources to procure up to 60,000 metric tons of graphite annually from Mozambique from 2025. Posco International, an energy subsidiary under Posco Group, has signed a joint investment agreement for the Mahenge graphite mine in Tanzania, securing a supply chain of up to 60,000 tons per year.

By Byun Hye-jin (hyejin2@heraldcorp.com)