POSCO to Invest Over $400 Million to Build Battery Material Plant in Thai Nguyen

Against the backdrop of the global clean energy supply chain reshaping rapidly, POSCO Future M, part of the POSCO Group in Korea, has officially chosen the Song Cong 2 Viglacera Industrial Park in Thai Nguyen province as the site for Vietnam’s first large-scale battery-material plant. It will also be POSCO’s first overseas production base for cathode active material.

Land lease agreement signed

The land lease agreement signing ceremony at Song Cong 2 Viglacera Industrial Park took place on April 9, 2026. At the event, a POSCO Future M representative said the group has been one of the world’s leading steel producers since 1968, and has expanded internationally and developed further in energy, components and automotive equipment, and batteries.

Project scope and timeline

POSCO Future M is the only Korean unit capable of producing both cathode and anode materials simultaneously, serving as a key link in the global supply chain of leading electronics and EV manufacturers.

After surveys and studies, POSCO Future M decided to select Song Cong 2 Viglacera Industrial Park to build the group’s first battery-material plant in Vietnam. The project covers 37 hectares with a total investment of over USD 400 million. Construction is scheduled for the second half of 2026, with production starting in 2028.

The plant will have a capacity of 55,000 tons per year and will expand in phases as orders come in. POSCO Future M said the facility will be a key battery-material supply center for leading EV groups in the US, EU and Korea.

Rationale: supply chain urgency and scaling plans

POSCO Future M said the need to secure battery-material supply chains is increasingly urgent. In this context, the company has engaged with many customers on artificial graphite anode materials and is pursuing a strategic investment to scale up production and boost competitiveness.

Why Song Cong 2 Viglacera

POSCO Future M’s investor representative highlighted Vietnam’s advantages in production costs and logistics compared with regional peers such as Indonesia. The representative cited favorable geology, stable power supply, large-scale capacity, and modern infrastructure of Song Cong 2 Viglacera as key factors supporting the group’s global supply-chain expansion.

Viglacera’s representative said Song Cong 2 Viglacera has an area of 296 hectares and a strategic location along the Hanoi–Thai Nguyen Expressway and Belt 5. The company said this creates a logistics corridor that helps firms connect quickly with electronics and automotive manufacturing networks in Vietnam’s northern region.

Industrial park momentum and investment backdrop

Just over a year after construction began, Song Cong 2 Viglacera has attracted projects including high-tech, semiconductor, PCB, and module initiatives, forming part of the Samsung semiconductor supply chain in the region.

Viglacera said its 18 industrial parks in Vietnam have attracted more than USD 20 billion of high-quality capital from world-leading technology groups such as Samsung, Amkor, Hyosung, Hana Micron, Foxconn, BYD, THK, and Canon.

In the era of a green economy, Viglacera said it is committed to providing clean land and smart, green infrastructure, ready to support enterprises joining the global production network.