U.S. tariffs on Chinese graphite boost POSCO Future M’s prospects as a competitive, non-Chinese anode supplier despite weaker profits.
POSCO Future M has emerged as a key beneficiary of newly imposed U.S. tariffs targeting Chinese graphite imports, despite posting weaker financial results due to a global slowdown in electric vehicle (EV) demand. The U.S. government’s decision to levy significantly higher duties on Chinese graphite products has shifted investor focus to alternative suppliers, prominently positioning POSCO Future M as a viable option in the American market.
The South Korean battery materials manufacturer experienced a notable surge in its stock price, climbing 19.59 percent to close at 156,900 won ($113) on Friday. This rally came on the heels of the company’s announcement that its estimated operating profit for the second quarter stood at 773 million won — a sharp 71.7 percent drop compared to the same period last year. Nonetheless, the market responded positively due to the strategic implications of U.S. trade actions against China.
The U.S. Department of Commerce revealed on Thursday its preliminary decision to impose anti-dumping duties of 93.5 percent on Chinese-sourced graphite anode materials, a crucial component in EV batteries. The department accused Chinese suppliers of selling these materials in the U.S. at prices below fair market value. The final determination on both anti-dumping and countervailing (anti-subsidy) duties is scheduled for release by December 5.
Earlier, in May, two major Chinese anode suppliers had already been hit with countervailing duties as high as 721 percent. However, the latest move is expected to cast a much wider net, applying to all Chinese producers of anode materials and thereby creating substantial disruption in the supply chain.
POSCO Future M appears well-positioned to capitalize on this geopolitical shift. The company’s anode materials are derived from natural graphite sourced in Africa and synthetic graphite produced using byproducts from POSCO’s steel manufacturing operations. This supply chain independence from China makes POSCO Future M a rare non-Chinese alternative for American battery manufacturers seeking to diversify away from China.
During a recent earnings conference call, a POSCO Future M executive acknowledged the company’s historical disadvantage in pricing compared to Chinese competitors. “We have lagged behind Chinese competitors when it comes to price competitiveness in both natural and synthetic graphite,” the official stated. “But with the new U.S. tariffs in place, our products will be able to compete on price.”
As global supply chains recalibrate in response to evolving trade dynamics, POSCO Future M is increasingly being viewed as a critical player in the U.S. effort to secure a stable and diversified supply of EV battery materials.
