POSCO and Molten Join Forces to Develop Graphite Anode Material

POSCO Holdings Inc. PKX is advancing its battery materials strategy through its subsidiary POSCO Future M. The company is developing natural graphite anode materials using methane gas as an alternative carbon source.

POSCO Future M recently signed a memorandum of understanding (MOU) with U.S.-based Molten for jointly developing key raw materials for natural graphite anode material. The company is specifically leveraging Molten’s methane-based graphite production technology, where methane is thermally decomposed at high temperatures into hydrogen and solid carbon. This solid carbon can then be engineered into high-purity graphite suitable for lithium-ion battery anodes.

This initiative aims to replace conventional coal and petroleum-based feedstocks with methane, enabling a cleaner and potentially more cost-efficient production process for lithium-ion battery anodes. The process reduces reliance on carbon-intensive inputs and avoids many of the emissions associated with traditional graphite production methods.

The use of methane is expected to significantly lower the carbon intensity of graphite production while improving scalability, aligning with the rising demand for sustainable EV battery supply chains. The approach could also enhance cost competitiveness given methane’s relative abundance and stable supply compared with traditional raw materials. It supports efforts to diversify supply chains away from China-dominated graphite markets.

The project aligns with POSCO’s ambition to build a fully integrated battery materials ecosystem spanning raw material sourcing, refining and advanced material manufacturing. Innovations such as methane-based graphite production position POSCO Future M to strengthen its role in next-generation anode technology.

Shares of PKX are up 12.5% over the past year against the industry’s 4.1% fall.

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PKX Zacks Rank & Key Picks

PKX currently carries a Zacks Rank of #3 (Hold).

Some better-ranked stocks in the Basic Materials space are DuPont de Nemours, Inc. DD, Compass Minerals International, Inc. CMP and Carpenter Technology Corporation CRS. DD and CMP sport a Zacks Rank of #1 (Strong Buy), while CRS carries a Zacks Rank of #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for DD’s current fiscal-year earnings stands at $2.28 per share, reflecting a 36% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 6.5%.

The Zacks Consensus Estimate for CMP’s current fiscal-year earnings is pegged at 89 cents per share, indicating a 285.42% year-over-year rise. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with the average earnings surprise being 35%.

The Zacks Consensus Estimate for CRS’s current fiscal-year earnings is pegged at $10.28 per share, indicating a 37.43% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 9.23%.

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POSCO Holdings Inc. (PKX): Free Stock Analysis Report

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