On the 12th of December, POSCO Future M announced a significant breakthrough in the localization of its electrode rod manufacturing technology, a crucial component in the steel production process. This achievement comes at a time when the domestic steel industry has been heavily reliant on imports, sourcing over 30,000 metric tons of electrode rods annually from countries like China, Japan, and India. The localization of this technology is expected to bolster the domestic steel sector, enhancing its self-sufficiency and competitiveness.
Electrode rods are vital carbon materials used in the refining process during steelmaking. They play a critical role in melting iron scrap with electricity to produce molten metal or in removing impurities from the molten metal created in the furnace. The effectiveness of these rods lies in their ability to convert electricity into thermal energy, with larger diameters and higher electrode densities translating to increased power and improved production efficiency. Therefore, the development of high-quality electrode rods is essential for optimizing steel production.
POSCO Future M's success in localizing electrode rod manufacturing technology stems from its involvement in a national project called "Development of Artificial Graphite Electrode Rod Technology of 300mm or More." This initiative, part of the carbon industry base development project launched by the Ministry of Trade, Industry, and Energy in 2020, spanned an extensive research and development period of four years and nine months. The collaboration included various institutions, such as the Pohang Institute of Industrial Science (RIST), which contributed to product and process development and the establishment of manufacturing facilities.
The project also saw contributions from POSCO MC Materials, POSTECH Accelerator Research Institute, and Kumoh Institute of Technology, which focused on enhancing raw material properties, optimizing manufacturing processes, and creating prototypes. This collaborative effort highlights the importance of teamwork in advancing technology and addressing industry challenges.
Historically, the steel industry has faced significant challenges due to reliance on foreign electrode rod supplies. In 2017, a shortage of Chinese electrode rods nearly caused shutdowns for small and medium-sized steelmakers. Additionally, in 2019, Japanese export regulations to Korea led to a decline in electricity efficiency due to a lack of high-quality electrode rods. These incidents underscored the vulnerability of the domestic steel sector and the pressing need for localized production capabilities.
With the successful localization of electrode rod manufacturing technology, POSCO Future M is now considering the commercialization of market-specific electrode rods. This move is expected to further strengthen the domestic steel industry's supply chain resilience and reduce dependence on imports. Moreover, the company plans to enhance collaboration with POSCO, which has recently begun constructing an electric furnace plant at Gwangyang Works, aimed at developing a low-carbon steel production process.
Cho Yong-ho, head of POSCO Future M's basic materials business division, emphasized the critical importance of this localization effort. He stated, "We agree on the need to localize electrode rods that depend on total imports and cooperate closely to secure high-quality electrode rod manufacturing technology. We expect it to be a turning point for stabilizing the material supply chain and securing global competitiveness in the domestic steel industry." This sentiment reflects a broader commitment within the industry to innovate and adapt to changing market conditions while ensuring sustainability and efficiency in steel production.
