Jun. 6, 2025 - South Korean battery materials producer Posco Future M is set to build a spherical graphite manufacturing facility in Saemangeum, North Jeolla Province, as part of efforts to reduce dependence on China for anode materials.

The company signed an agreement on Thursday with the Saemangeum Development and Investment Agency (SDIA), North Jeolla Province, Gunsan City and the Korea Rural Community Corporation to invest 436.1 billion won ($321.3 million) in the new facility, according to North Jeolla Province.

The signing ceremony, held in Gunsan, North Jeolla Province, was attended by Posco Future M CEO Eom Gi-chen, North Jeolla Gov. Kim Kwan-young, SDIA Administrator Kim Kyung-ahn, Gunsan Mayor Kang Im-jun and other local officials.

Posco Future M's anode material production facility in Sejong

“With this new facility, we aim to respond to increasingly protectionist trends in global supply chains and contribute to the competitiveness and growth of Korea’s battery industry,” Eom said.

Spherical graphite is refined natural graphite that reaches about 95 percent purity, then is further upgraded to over 99.9 percent for use in anode production.

Upon completion in 2027, the plant will have an annual production capacity of 37,000 tons of spherical graphite, according to the company.

Of the total investment, 277.3 billion won will be funded through a rights offering scheduled for July. The investment follows Posco Future M’s board decision in April to localize the production of key battery materials.

With China currently accounting for over 99 percent of the global supply of spherical graphite, Posco Future M is seeking to lessen its dependence on Chinese sources amid growing geopolitical risks and potential US restrictions on Chinese battery materials for electric vehicles.