POSCO Holdings, Inc. PKX, through its battery materials subsidiary POSCO Future M, is advancing the development of natural graphite anode materials using non-mined raw materials in partnership with U.S.-based Molten. The companies recently signed a memorandum of understanding (MOU) at COEX in Seoul to jointly develop graphite anode feedstock produced from methane gas. 

Molten will use its methane pyrolysis process to produce graphite, which POSCO will process into spherical graphite through its subsidiary FutureGraph before manufacturing natural graphite anode materials at its Sejong plant. Graphite produced from methane contains fewer metallic impurities than conventionally mined graphite, reducing purification requirements and lowering production costs. 

The partnership could also create broader synergies for the POSCO Group, as methane pyrolysis generates hydrogen alongside graphite. The hydrogen may potentially be used in power generation and POSCO's hydrogen-based direct reduction steelmaking operations. 

Per PKX, the partnership will help diversify its supply chain and strengthen cost competitiveness in the global battery materials market. 

Separately, POSCO continues to build a vertically integrated anode-material supply chain. For natural graphite anodes, the company plans to source graphite ore from Africa and other regions through the POSCO Group and process it into spherical graphite at FutureGraph. For artificial graphite anodes, the company utilizes coal- and petroleum-based coke derived from coal tar generated during POSCO's steelmaking operations. 

Shares of PKX have gained 65.5% in the past year against the industry's 3.6% decline. 

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PKX Zacks Rank & Key Picks

PKX currently carries a Zacks Rank #5 (Strong Sell).

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