Semiconductors, quantum computers, and artificial intelligence (AI) seem to be the trend, but the importance of batteries, a core component of electric vehicles, is not overstated.
Let's analyze POSCO FutureM, a cathode material manufacturer, one of the four major battery materials.


Among the four major components of batteries, namely secondary batteries, cathode materials, electrolytes, and separators, cathode materials are key materials that determine the battery charging speed and lifespan. There are natural graphite, artificial graphite, and recently silicon graphite materials. Based on artificial graphite, the proportion of battery cell cost is approximately 13%.
Cathode Material Market
Among domestic manufacturers, POSCO Future M is the only one, but its global market share is 9th to 10th, with MS at 3%, and the rest are all Chinese companies such as BTR, Shanshan, Jichen, and Xiangtai.
The reason China is competitive is that, as a resource-rich country, 70% of the raw material graphite is produced in China, and in addition, cathode materials are supplied at the upper $2 per kg based on low electricity rates and government subsidies.
- Positive factors for stock price increases
1). The goal is to make domestic cathode materials, which are about 50% more expensive than Chinese cathode materials, competitive in price through subsidies. POSCO Future M is currently operating only a 7,500-ton production line at its Sejong Plant 2 with an annual capacity of 45,000 tons. The operating rate has plummeted from 60% in 2022 to 15%, raising concerns about the continuation of the business. However, this time, the government (Ministry of Trade, Industry and Energy) subsidy payment has become a positive factor.
2). In May of last year, the United States decided to postpone by two years the plan to not pay electric vehicle sales subsidies (USD 7,500 per vehicle) under the Inflation Reduction Act (IRA) if Chinese graphite is used (to enforce regulations on cathode materials made of Chinese graphite after two years). This is an acceptance of the demands of electric vehicle and battery cell manufacturers that it is impossible to escape from the Chinese graphite supply chain right away.
3). It is worth paying attention to the fact that L&F, a domestic cathode material company, is preparing to enter the cathode material market by building a joint venture with Mitsubishi of Japan.
The government is promoting a plan to support production subsidies for cathode materials, one of the four major battery materials. The goal is to make domestic cathode materials, which are about 50% more expensive than Chinese cathode materials, competitive in price through subsidies. The only cathode material manufacturer in Korea
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- Silicon cathode materials and next-generation batteries
Silicon cathode materials have a capacity per unit weight that is about 10 times higher than that of graphite, and silicon (Si) can store more lithium atoms than carbon (C), which increases driving distance and shortens charging time, and several companies are developing them in the country.
Lithium sulfur batteries, lithium air batteries, all-solid-state batteries, and sodium ion batteries are actively competing as next-generation batteries.
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Thanks a lot