POSCO Future M stock: Hyundai weighs Vietnam graphite investment

POSCO Future M announced on Tuesday, November 3, that Hyundai Motor Group is considering a 100 billion Korean won equity investment in the battery-materials producer's artificial graphite anode plant in Vietnam. The companies would also discuss priority purchasing rights for materials made at the facility, according to The Chosun Daily.

Vietnam plant targets 2028 production

The proposed investment concerns a factory under construction in Thai Nguyen Province in northern Vietnam. POSCO Future M began construction this year after committing about 357 billion Korean won to the project, with mass production targeted for 2028.

Initial annual capacity is planned at 23,000 tons, with potential expansion to 55,000 tons. The first-phase output has already secured customer orders, while the companies intend to cooperate on product development and quality evaluation for Hyundai's electric vehicles.

Supply-chain diversification remains central

Artificial graphite improves charging performance and battery life but remains heavily dependent on Chinese supply chains. The proposed partnership would give Hyundai a potential priority supply arrangement and help POSCO Future M expand production outside China.

The announcement also builds on earlier cooperation between the companies in steel and secondary-battery materials. For investors, the key next steps are the final investment and purchasing terms, followed by construction progress and customer deliveries.