Photo = POSCO FutureM

 

[Alpha Biz= Reporter Kim Sangjin] POSCO Future M, South Korea’s sole anode material producer, is struggling due to a price offensive from Chinese competitors, putting the nation's electric vehicle (EV) battery material industry at risk of collapse.

Concerns are growing that if battery material manufacturers, which play a key role in the EV ecosystem, falter, it could trigger a chain reaction affecting battery manufacturers and EV companies.

According to the battery industry on December 8, POSCO Future M’s Sejong Plant 2, which has an annual production capacity of 45,000 tons, is currently operating only a 7,500-ton production line. This marks a steep decline in its utilization rate from 60% in 2022 to just 15%.

The drop comes as China tightens its grip on the anode material market, a key component of EV batteries. Backed by government subsidies and low labor costs, Chinese companies have boosted their cost competitiveness, sweeping the global market.

Based on market share, POSCO Future M is the only South Korean company among the world’s top 10 anode material producers. The other nine companies are all based in China.

Industry insiders warn that if South Korea’s battery material suppliers collapse, it could lead to supply chain disruptions akin to the "urea solution crisis" the country experienced previously.

As a result, there are growing calls for concrete and effective support measures to ensure the survival of the battery industry. Proposals include purchase subsidies, tax credits, and reduced electricity rates.

 

 

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