Posco Future M ships 1st cathodes made with domestic precursors to Ultium Cells

Korean battery materials makers are striving to lower their dependence on China to meet tighter US import rules

Posco Future M ships its first cathodes made with domestically sourced precursors to Ultium Cells to cut its reliance on China and meet tighter US rules
Posco Future M ships its first cathodes made with domestically sourced precursors to Ultium Cells to cut its reliance on China and meet tighter US rules
In-Soo Nam 2
2025-08-08 17:04:14 isnam@hankyung.com
Batteries

POSCO Future M Co., South Korea’s leading battery materials maker, has begun shipping cathode materials produced entirely with domestically sourced precursors, as it strives to cut its reliance on Chinese inputs and strengthen its foothold in the US electric vehicle battery market.

The affiliate of Korea’s top steelmaker POSCO Holdings Inc., said on Friday that the first batch was produced at its newly completed precursor plant in Gwangyang, South Jeolla province, which came online in June.

The materials, high-nickel NCMA, also containing cobalt, manganese and aluminum cathodes, are known for their high energy density and output.

Posco Future M ships its first cathodes made with domestically sourced precursors
Posco Future M ships its first cathodes made with domestically sourced precursors

The Korean battery materials producer will supply its products to Ultium Cells LLC – the US battery joint venture between LG Energy Solution Ltd. and General Motors Co. – one of POSCO Future M’s key clients.

The cathodes will be used in high-performance EV batteries bound for the North American market.

TIGHTER US RULES

Washington last month tightened rules under the advanced manufacturing production credit provisions of its omnibus budget bill, introducing new prohibited foreign entity (PFE) restrictions that bar the use of certain Chinese battery materials in subsidized products.

Korean battery materials makers have tried to increase the use of domestic precursors to ensure compliance.

POSCO Future M's artificial graphite anode material plant in Pohang
POSCO Future M's artificial graphite anode material plant in Pohang

According to market research firm SNE Research, more than 90% of Korea’s precursor imports came from China as of March.

POSCO Future M’s move is part of a broader push by Korean battery materials makers to diversify supply chains and localize key inputs.

The company plans to extend independent production to its cathode plant in Pohang, complementing the Gwangyang facility.

Through group affiliates, including POSCO, POSCO HY Clean Metal, POSCO Pilbara Lithium Solution and POSCO Lithium Solution, the company aims to complete a vertically integrated supply chain from raw materials such as lithium and nickel to intermediate precursors and finished cathodes.

“This will give us a competitive edge in supply chain resilience amid shifting global trade conditions,” said a POSCO Future M official.

Write to In-Soo Nam at isnam@hankyung.com
Jennifer Nicholson-Breen edited this article.
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