South Korea’s POSCO Future M plans to invest KRW357 billion ($270 million) in building a new factory in Vietnam’s Thai Nguyen province, to produce artificial graphite anode materials used in batteries.

In a Thursday press release, POSCO Future M said the investment is part of its plan to expand global orders, including customers from South Korea, North America, and the EU. Artificial graphite anode materials are a key component in lithium-ion batteries, helping improve fast-charging performance and battery life.

The plant will be built on a site capable of supporting up to 55,000 metric tons of annual production capacity, with future expansion planned in phases depending on additional orders. Construction is expected to begin in the second half of 2026, with mass production scheduled for 2028.

POSCO Future M currently operates an artificial graphite anode production plant in Pohang, South Korea with an annual capacity of 8,000 metric tons. The company plans to utilize its manufacturing experience gained from its domestic operations to the new facility in Vietnam to produce cost-competitive products for global customers.

POSCO Future M produces both cathode and anode materials used in lithium-ion batteries. The company first localized production of natural graphite anode materials in 2011 and completed its artificial graphite anode material plant in Pohang in 2021, establishing a mass production system in South Korea.

Dutch semiconductor giant Besi plans €10M to further build production facility in Vietnam