Posco invests $282 mln in battery materials plant in northern Vietnam

South Korean conglomerate Posco will invest a $282 million battery materials project in Vietnam's northern province of Thai Nguyen, marking its first overseas project in the artificial graphite segment.

Authorities in Thai Nguyen granted an investment registration certificate and enterprise registration to Posco Future M, the Vietnam arm of Posco, for a plant producing artificial graphite anode materials at Song Cong II Industrial Park.

The project represents Posco's first overseas venture in this business line since entering the sector in 2011, and is also Vietnam’s first large-scale facility dedicated to battery anode materials.

Provincial authorities fast-tracked approvals under a “green lane” mechanism shortly after initial discussions, highlighting increasing competition among Vietnamese localities to attract high-tech foreign direct investment.

Speaking at the grant ceremony on Thursday, Eom Gi Chen, CEO of Posco Future M, said that construction is scheduled to begin in the third quarter of 2026, with commercial operations targeted for Q4/2028.

Once operational, the plant is expected to produce up to 46,000 tons of artificial graphite annually, generating more than $150 million in yearly revenue and contributing an estimated $5.8 million in corporate income tax, he noted.

The facility is projected to employ more than 300 workers and supply battery materials not only across Southeast Asia but also to global markets, the executive added.

The Posco Future M leader said the investment reflects confidence in Thai Nguyen’s investment environment and industrial competitiveness.

Vuong Quoc Tuan, Chairman of the Thai Nguyen People's Committee, expressed expectations that the project would catalyze further inflows into loval supporting industries.

The provincial government also asked infrastructure developer Viglacera to ensure adequate utilities and services at the industrial park and to support the investor in accelerating construction and operations.

Posco began investing in Vietnam in 1991, with total investment of $2 billion to date.

Thai Nguyen is a major industrial hub in northern Vietnam, besides Hai Phong city and Bac Ninh province. It is also home to Samsung’s key production bases, including Samsung Electronics Vietnam Thai Nguyen (SEVT) and Samsung Electro-Mechanics Vietnam (SEMV).

In Q1/2026, Thai Nguyen lured over $5.4 billion in registered foreign investment, topping nationwide in terms of new FDI attraction, according to the Ministry of Finance.