Posco Future M bets on AI manufacturing push to boost productivity 30%

A production line at Posco Future M's artificial graphite anode material factory in Pohang. [Posco Future M]

Posco Future M plans to apply AI across its entire battery materials manufacturing process — from raw material procurement and production to quality management and customer collaboration — with the goal of simultaneously raising productivity and accelerating development.

The company announced Tuesday that it has established a companywide AI transformation plan under the digital innovation vision of becoming a "Battery of Things ecosystem game changer." It aims to complete the relevant systems by the first half of 2028.

At the core of the plan are process standardization and data integration. Data previously accumulated separately across production, R&D, sales, and environmental, social and governance management will be connected into a single flow and fed into AI analysis to speed up decision-making across the business.

The battery materials industry faces growing pressure to improve production efficiency and quality stability as slowing electric vehicle market growth collides with intensifying cost competition. Posco Future M's decision to make AI transformation a companywide priority reflects a drive to simultaneously cut manufacturing costs, shorten development timelines and strengthen customer responsiveness — going well beyond a simple digital upgrade.

The initiative also aligns with a group-level AI strategy. Posco Group Chairman Jang In-hwa said earlier this year that "AI is social infrastructure, and companies that move quickly on AI transformation will win," urging the entire group to accelerate the shift.

Posco Future M outlined five key directions for the push: process and system optimization through AI agents, building an integrated data hub, realizing intelligent factories, full-cycle hyperconnectivity from raw materials to finished products, and deepening R&D collaboration with customers.

A graphic outlining Posco Future M's companywide AI transformation plan. The company has presented the digital innovation vision "Battery of Things Ecosystem, Game Changer" to strengthen battery ecosystem leadership and secure manufacturing competitiveness. [Posco Future M]

Physical AI will be applied on the factory floor. AI will analyze equipment and production data to adjust manufacturing conditions and automate repetitive on-site tasks. The company expects this to raise manufacturing productivity by 30 percent.

In R&D, the company will introduce AI-driven technology trend analysis, materials design and virtual verification. The goal is to cut the product development cycle in half by reducing trial and error in the new product development process.

Quality management will also be upgraded. Using quality-analysis robots and automated systems, the company plans to double the speed at which it identifies causes and takes corrective action when quality issues arise. Given that customer certification and quality stability are critical in battery materials, faster response capability can directly translate into stronger order competitiveness.

AI simulation will be introduced in sales and order strategy as well. The company plans to use data across the entire order and marketing process — including raw material price forecasting, customer demand outlook and sales price negotiations — to strengthen its negotiating position. The flow from contract and order through production to shipment will also be monitored on an integrated basis to improve operational efficiency.

On the ESG front, AI will analyze equipment operating conditions to automatically detect inefficiencies and build a system for diagnosis and optimization. This is expected to reduce energy consumption and improve factory operating efficiency.

Posco Future M believes the manufacturing innovation drive will help build customer confidence in its quality stability and manufacturing competitiveness. The company aims to use that foundation to expand orders from existing customers and attract new ones, creating a virtuous cycle.

The company also has longer-term ambitions to expand the battery ecosystem. As battery applications broaden beyond electric vehicles to include ESS, robots and drones, Posco Future M plans to use data accumulated across product manufacturing, management and sales to identify new business opportunities.

Going forward, Posco Future M plans to embed AI agents by default in all newly developed systems to reduce the need for human intervention. It also plans to train at least one AI specialist per department this year to lead the identification and execution of AI transformation tasks at each site.

kwater@heraldcorp.com