POSCO Chemical has signed a binding agreement with Ultium Cells for a large-scale supply of artificial graphite anode material to help further expand EV battery cell production in the United States. The six-year, KRW 939.3 billion agreement calls for artificial graphite anode materials produced at the Pohang plant to be supplied to Ultium Cells, a battery joint venture between General Motors and LG Energy Solution. Artificial graphite anode material has advantages in battery charging speed and lifespan compared to natural graphite products. Traditionally most of this material has originated in China, however POSCO Chemical has localized production at its Pohang plant with an annual capacity of 8,000 tons in 2021. Since 2011, POSCO Chemical has been producing natural graphite anode material only in Korea. In particular, POSCO Chemical has internalized the entire value chain from raw materials to final production by sourcing needle coke, a raw material, from PMC Tech, a carbon material subsidiary. In addition, manufacturing costs were reduced by utilizing self-developed manufacturing technology, quality control and smart factory processes. Ultium Cells LLC launched battery cell production in Warren, Ohio earlier this year to support GM’s rapidly expanding portfolio of electric vehicles. A second U.S. battery cell plant will launch in 2023 in Tennessee, and construction of a third is underway in Michigan.