POSCO Chem to expand low-expansion anode materials output

South Korea’s POSCO Chemical Co. plans to fivefold production of low-expansion anode materials, high-value-added ingredients for electric vehicle batteries.

The unit of the country’s top steelmaker POSCO decided to ramp up output of low-expansion anode materials to 35,000 tons a year from 7,000 tons in a board of directors’ meeting on Friday.

POSCO Chemical is set to invest 105.4 billion won ($87.5 million) to convert a natural graphite anode materials plant under construction in South Korea into a production line dedicated to low-expansion anode materials. It aims to start mass production from the next year.

Low-expansion anode materials, which POSCO Chemical developed with its own technology, improve the charging speed of batteries by 15%. The materials also enhance the safety and lifespan of batteries, according to the company.

Anode materials are classified into products with natural graphite and ones with synthetic graphite. POSCO Chemical produces low-expansion anode materials with natural graphite and improves the materials’ structure to improve quality. In addition, the company cuts carbon emissions generated from production.

“We plan to develop more types of both silicon anode materials and synthetic graphite anode materials,” said POSCO Chemical CEO Min Kyung-zoon.

Write to Jeong Min Nam at peux@hankyung.com
Jongwoo Cheon edited this article.