POSCO Future M, a subsidiary of South Korea’s POSCO Group, has selected the Song Cong 2 Viglacera Industrial Park in Thai Nguyen Province as the site for its first large-scale battery materials facility in Vietnam. This marks POSCO’s inaugural overseas production base for cathode materials. The two parties signed an in-principle lease agreement covering 37 hectares on April 9.
A company representative noted that POSCO Future M is the only South Korean producer capable of manufacturing both cathode and anode materials, positioning it as a critical supplier to global electronics and electric vehicle manufacturers. After extensive site evaluations and technical surveys, the firm chose Song Cong 2 for its modern infrastructure and capacity for future expansion.
The project involves an investment exceeding US$400 million. Construction is slated to begin in the second half of 2026, with production expected to start in 2028. The plant’s initial capacity will be 55,000 metric tons of cathode materials per year, with phased increases planned to match rising order volumes.
Once operational, the facility will serve as a strategic supply hub for leading electric vehicle makers in the United States, the European Union, and South Korea. Establishing a local manufacturing base in Vietnam aligns with POSCO Future M’s strategy to diversify its production footprint, strengthen supply-chain resilience, and respond to growing global demand for battery components amid the shift to clean energy and electromobility.
By leveraging Vietnam’s industrial ecosystem and strategic location, POSCO Future M aims to reduce logistics costs and shorten delivery times for key markets. The project reflects a broader industry trend of battery material producers expanding internationally to meet escalating demand for high-performance components in the EV sector.
Source: VN Economy
