South Korea-based global battery materials provider Posco Future M, a global battery materials provider, has confirmed it will establish its first overseas manufacturing base in Thai Nguyen, northern Vietnam, marking a significant milestone in the stabilization of the global electric vehicle ( EV ) supply chain.

The move comes after the company secured its largest-ever contract for artificial graphite anode materials – a long-term supply deal valued at around 1.0149 trillion won ( US$670 million ) from an undisclosed major global automaker – with the new facility needed to fulfil this massive order.

Posco Future M, which is part of the Posco Group and provides essential components for EVs, signed the deal with the automaker on March 16. The five-year supply agreement is scheduled to run from October 1 2027 through September 30 2032.

While the specific identity of the automotive partner remains confidential due to business secrecy, the company notes, the “consecutive major contract wins reflect its supply-chain premium and technology competitiveness” and is the largest supply agreement it has secured since entering the anode material business in 2011.

The company currently supplies anode material to domestic battery manufacturers and companies, including GM, and previously signed a natural graphite anode material supply agreement with a major Japanese battery manufacturer in July 2025, followed by another deal with a global automaker in October 2025 valued at 670 billion won.

The decision to anchor this expansion in Vietnam is a pivotal move for the Korean based firm. The plant will serve as the primary production site for the artificial graphite anodes required to meet the demands of the latest contract. The company adds it has “secured the customer commitment underpinning its Phase 1 investment and plans to proceed with a Phase 2 investment to accommodate additional order volumes”.

Construction of the plant is slated to begin in the second half of 2026, with full-scale mass production targeted for 2028. The factory site is designed to support an ultimate annual production capacity of up to 55,000 tonnes.

By selecting Vietnam, Posco aims to leverage the Southeast Asian country’s strategic location and competitive cost structure. “Vietnam offers significant advantages in reducing costs across investment, electricity, labour and logistics,” the company notes, providing a hedge against the low-cost strategies of competitors.

The move also serves as a safeguard against complex international trade regulations, such as the US Inflation Reduction Act and the EU’s Critical Raw Materials Act. This win, the company shares, “is a testament to its supply-chain solutions and technological capabilities, which are fully equipped to navigate trade regulations across major markets”.

The company’s ability to secure such a high-value contract, it argues, highlights its unique position as the only producer in South Korea capable of manufacturing both cathode and anode materials. Posco has invested heavily in vertical integration, using coal- and petroleum-based coke derived from coal tar in its steelmaking process.

In addition to artificial graphite, which improves fast-charging performance and battery life, the firm states, it is expanding its portfolio to include next-generation silicon-based materials.

With the Vietnam facility set to become a cornerstone of its international operations, the company, it points out, “has established a solid foundation for sustained business growth by broadening its customer base and improving profitability”.

Building on its Vietnam investment, Posco expects to expand its mass-production base and continue growing its global order book through ongoing supply discussions with customers in South Korea, North America and Europe.