Implementing ‘ Edge AI’ directly integrated into on-site control systems to improve manufacturing data security and productivity 

POSCO DX is pursuing the realization of an intelligent factory capable of immediate AI analysis and control on-site by utilizing domestic NPU to replace foreign GPU and reduce AI infrastructure costs.

POSCO DX (CEO Shim Min-suk) signed a business agreement with AI semiconductor startup Mobilint (CEO Shin Dong-joo) at the POSCO DX Pangyo headquarters on the 2nd to implement AX utilizing NPU. Prior to this agreement, in February, POSCO DX invested a total of 3 billion won in Mobilint through the ‘POSCO DX Corporate Venture Capital (CVC) New Technology Investment Fund,’ which it co-funded with POSCO Technology Investment.

NPU are semiconductors specialized for AI computations, such as deep learning and machine learning. Compared to GPUs, they are optimized for AI inference, offering the advantages of reduced infrastructure costs and high power efficiency. In particular, they are suitable for implementing “Edge AI” by being directly integrated into field equipment control systems, bypassing remote AI data centers or servers. This enables immediate inference without data leakage in manufacturing sites where security is critical, thereby ensuring both security and real-time performance simultaneously.

Under this collaboration, POSCO DX plans to realize an intelligent factory capable of immediate AI analysis and control at the industrial site equipment control stage by integrating Mobilint’s NPU into its in-house developed industrial control system, PosMaster. To this end, both companies will jointly pursue technology development and application to ensure that POSCO DX’s AI model algorithms deliver optimal performance in Mobilint’s NPU-based environment.

Mobilint is the only company in Korea possessing high-performance NPU technology capable of running Large Language Models (LLM) in edge environments. Mobilint’s high-performance NPU enables real-time decision-making and control utilizing vast field data generated from sensors and equipment, and is expected to contribute to accelerating the realization of POSCO Group’s intelligent factory.

POSCO DX plans to expand its edge AI technology to transition existing GPU-based AI systems to NPUs and apply them to various industrial sites, including steel and secondary battery material production facilities as well as logistics.

Cho Seok-joo, Head of the AX Convergence Research Institute at POSCO DX, emphasized, “Through this collaboration , we have been able to secure LLM-based edge AI technology essential for realizing intelligent factories.” He added, “We will develop this into a successful example of collaboration and mutual growth with a domestic startup, rather than a simple NPU supply relationship, to ensure that POSCO Group establishes itself as a company leading the paradigm shift in manufacturing AI .”

Meanwhile, POSCO Group is actively promoting the realization of safe and comfortable workplaces based on technology by expanding intelligent factories to manufacturing sites to respond promptly to the industrial paradigm shift, including AX.

▲ (From left) Cho Seok-ju, Head of POSCO DX AX Convergence Research Institute, and Shin Dong-ju, CEO of Mobilint, are posing for a commemorative photo after signing a business agreement for cooperation in the commercialization of technologies in the manufacturing, logistics, and safety sectors using AI semiconductors at the POSCO DX Pangyo headquarters.

A combination of POSCO Future M’s anode material technology and Molten’s methane-based graphite production technology expected to strengthen the raw material supply chain and cost competitiveness

Young-jun Hong, Head of the POSCO Future M Technology Research Laboratory: “We will leverage the combined technological strengths of both companies to secure differentiated competitiveness in the global market”

POSCO Future M is embarking on the development of natural graphite anode material from non-mined raw materials, in collaboration with U.S.-based Molten.

On the 11th, POSCO Future M signed a memorandum of understanding (MOU) with Molten at COEX in Seoul for the joint development of natural graphite anode material feedstock using methane gas.

The signing ceremony was attended by Young-jun Hong, Head of the POSCO Future M Technology Research Laboratory; Kevin Bush, Chief Executive Officer (CEO) of Molten; Caleb Boyd, Chief Technology Officer (CTO) of Molten; and executives and employees from both organizations.

Through this agreement, POSCO Future M will combine its anode material technology with Molten’s methane-based graphite production technology to strengthen its anode material feedstock supply chain. Under the planned arrangement, Molten will produce graphite via methane pyrolysis, which POSCO Future M will then process into spherical graphite through its subsidiary FutureGraph before producing natural graphite anode material at its Sejong plant.

Graphite produced from methane gas contains lower levels of metallic impurities than mined graphite, reducing the number of purification steps required and yielding substantial cost savings in the production of natural graphite anode material. In addition, methane pyrolysis generates hydrogen as a co-product alongside graphite, which is expected to create synergies at the POSCO Group level, including potential use of the hydrogen for power generation or as a feedstock for POSCO’s hydrogen-based direct reduction steelmaking operations.

Young-jun Hong, Head of the POSCO Future M Technology Research Laboratory, said, “We have until now relied on graphite mined from conventional sources, but by combining the raw material and advanced materials expertise of both companies, we will secure key feedstock through an entirely new approach.” He added, “We expect this to give us a differentiated competitive edge in the global market through both supply chain diversification and cost reduction.”

Molten is the world’s only company capable of producing graphite via methane pyrolysis, and is headquartered in California.

Separately, POSCO Future M is working to vertically integrate its anode-material feedstock supply chain, drawing on the POSCO Group’s broader capabilities. For natural graphite anode material, the company plans to establish a supply chain in which graphite ore is sourced from Africa and other regions through the POSCO Group and processed into spherical graphite at its subsidiary FutureGraph. For artificial graphite anode material, coal-based and petroleum-based coke derived from coal tar generated in POSCO’s steelmaking process is used as the primary feedstock.

▲ POSCO Future M and Molten signed a memorandum of understanding at COEX in Seoul on the 11th to jointly develop natural graphite anode material feedstock using methane. Pictured from left: Young-jun Hong, Head of the POSCO Future M Technology Research Laboratory; Caleb Boyd, Chief Technology Officer (CTO) of Molten.

Jin-nyeong Yoo appointed as Chair of the Board; Joo-yeon Kim appointed as new Outside Director; Jun-gi Kim reappointed as Audit Committee member

Seok-mo Jung appointed as new Inside Director; Hee-geun Lee appointed as Non-Executive Director; Ju-tae Lee and Ki-soo Kim reappointed as Inside Directors

Annual dividend for FY2025 confirmed at KRW 10,000 per share; shareholder value enhancement commitment fulfilled through 2% treasury share cancellation, achieving the three-year 6% target

POSCO Holdings held its 58th Ordinary General Meeting of Shareholders and a board meeting on March 24 at POSCO Center in Seoul, where key agenda items were approved.

In his opening remarks, In-hwa Chang, Chairman of POSCO Group, stated, “Despite challenging external conditions last year, including the expansion of global protectionism and an industrial slowdown, we strengthened the foundation for growth in our ‘2 Core’ businesses of steel and secondary battery materials.”

Chairman Chang added, “We will make 2026 a true inflection point for delivering tangible results,” outlining key initiatives for the year ahead: securing profitability through steel joint ventures in North America and India; realizing the outcomes of investments in secondary battery materials through the commencement of commercial lithium production in Argentina and earnings contributions from lithium mining operations in Australia; and expanding the value chain of infrastructure businesses, including energy and food.

He also emphasized that safety is a fundamental prerequisite for growth, highlighting the importance of establishing a worker-centered safety culture and building a safer and more efficient operational environment through the integration of AI and robotics.

All agenda items related to the appointment of directors were approved at the shareholder’s meeting. Joo-yeon Kim, former Vice President for Japan and Korea at P&G and a global marketing and management expert, was appointed as a new outside director. Jun-gi Kim, whose term as outside director had expired, was reappointed as a member of the Audit Committee.

Seok-mo Jung, Head of the Business Synergy Division, was newly appointed as an inside director. Ju-tae Lee, Head of the Corporate Strategy Division, and Ki-soo Kim, Head of POSCO N.EX.T Hub, were reappointed as inside directors. Hee-geun Lee, President and CEO of POSCO, was appointed as a non-executive director.

At the subsequent board meeting, outside director Jin-nyeong Yoo was appointed as Chair of the Board. Chair Yoo is a leading expert in advanced materials and secondary battery technologies, having previously served as Chief Technology Officer of LG Chem.

At the shareholder’s meeting, shareholders also approved the FY2025 financial statements, partial amendments to the Articles of Incorporation, and the cap on director remuneration. In addition, a year-end dividend of KRW 2,500 per share was approved, bringing the total annual dividend to KRW 10,000 per share. The Company also received approval to cancel treasury shares equivalent to 2% of total issued shares (approximately KRW 635.1 billion), thereby fulfilling its commitment to enhance shareholder value under the previously announced plan to cancel a total of 6% of treasury shares over three years (announced in July 2024).

▲ POSCO Group Chairman In-hwa Chang presides over the 58th Ordinary General Meeting of Shareholders of POSCO Holdings.

Selected a specialist in rare earth separation and refining as its first investment target, committing KRW 8 billion

Secured raw material sources in Southeast Asia, including Malaysia and Laos for a production foundation with an annual capacity of 4,500 tons

Plans to establish a joint plant with U.S.-based ReElement to complete a North American production system for rare earths/permanent magnets/traction motor cores by 2028

POSCO INTERNATIONAL is accelerating the development of a global supply chain for heavy rare earth elements, essential materials for electric vehicle (EV) traction motors.

Partnering with POSCO INVESTMENT, the company has launched its inaugural KRW 25 billion CVC fund, and the fund’s first strategic move involves an KRW 8 billion investment in a domestic specialist in rare earth separation and refining.

This fund is more than a financial vehicle as it will serve as a strategic investment platform for technological synergy and new business expansion. The fund will be managed by POSCO INVESTMENT, a venture investment specialist within the POSCO Group, and both companies plan to continuously identify promising technology companies that align with future growth strategies.

At its heart, this investment is about securing a stable supply of heavy rare earths. Elements such as dysprosium (Dy) and terbium (Tb) are essential for high-performance magnets in EV traction motors, as they allow them to stay magnetic even under intense heat. However, because production and refining are concentrated in a few countries, these materials pose a significant structural risk to the global supply chain.

The target company of this investment is a domestic specialist in rare earth separation and refining that possesses integrated process capabilities ranging from separation and refining to metallization. The company holds proprietary technology to produce heavy rare earth oxides at 99.5% purity and further reduce them into metals at 99.9% purity. Through this investment, the company intends to secure a stable supply source within the supply chain of heavy rare earths and build a stronger foundation for future business growth.

Alongside this domestic investment, the company is also making Southeast Asia as a base to strengthen its global system for raw material procurement. It plans to establish a USD 30 million joint venture with a specialized Malaysian company for separation and refining, validate an environmentally friendly mining and stable production system, and then proceed to full-scale mass production. In addition, the company is participating in a rare earth separation and refining project in Laos to expand its raw material procurement network across Southeast Asia.

These regional efforts are expected to secure an annual supply of roughly 4,500 tons of rare earth separation and refining products (approximately USD 230 million at today’s market prices) that can be secured from Southeast Asia. POSCO INTERNATIONAL intends to make additional investments in the future to expand production capacity to more than 10,000 tons.

The company is also accelerating its entry into the North American market, leveraging raw materials secured in Southeast Asia. In partnership with the U.S.-based company ReElement, it is establishing a joint rare earth separation and refining plant with an annual capacity of 3,000 tons, with full-scale production scheduled to begin in the second half of 2027. Furthermore, it plans to secure an annual production capacity of 3,000 tons for permanent magnets by 2028.

Through this series of investments, it aims to complete the full rare earth value chain—from mining to separation and refining to permanent magnet production—and integrate it with the manufacturing of traction motor core to continuously strengthen the competitiveness of its core EV parts business.

“This investment is a strategic move to simultaneously diversify our core mineral supply chain and sharpen our competitiveness in the mobility materials business,” a POSCO INTERNATIONAL official stated. “Moving forward, we will continue to leverage our CVC fund to identify promising companies with strong business synergy and secure new growth drivers for the future.”

Meanwhile, POSCO Group Chairman Chang In-hwa has consistently emphasized the importance of timely investments in core minerals to stabilize the global supply chain and capture future growth opportunities in the secondary battery materials market. Last year, POSCO HOLDINGS invested a total of KRW 1.1 trillion to expand its footprint in the lithium sector, securing additional stakes in Australian mines and Argentine brine projects. This year, commercial lithium production in Argentina has begun, and the Australian lithium mine is expected to start contributing to profits in the second half of the year, following the completion of the stake acquisition.

▲ Panoramic view of POSCO International headquarters.

Carbon nanomaterial technology to be applied to suppress battery volumetric expansion during charge-discharge cycles, preventing structural deformation and significantly extending battery life

Young-jun Hong, Head of the POSCO Future M Research Institute: “The two companies have agreed to combine their world-class technology leadership to develop advanced battery materials”

POSCO Future M has signed a memorandum of understanding (MOU) with U.S.-based Sila for the joint development of advanced battery materials.

The two companies signed the MOU on the 11th at COEX in Seoul, in a ceremony attended by Young-jun Hong, Head of the POSCO Future M Research Institute, Gleb Yushin, Co-founder and Chief Technology Officer (CTO) of Sila, and executives and employees from both organizations.

Under the MOU, POSCO Future M plans to push advanced battery material technology further by combining the company’s cathode and anode material capabilities with Sila’s silicon anode material technology.

Silicon anode materials offers up to ten times the energy storage capacity of conventional graphite-based anode materials, enabling a significant increase in EV driving range while substantially reducing charging times. By leveraging carbon nanomaterial technology, the two companies expect to address one of the longstanding drawbacks of silicon anode material: the volumetric expansion that occurs during charge-discharge cycles. This approach is anticipated to prevent structural deformation and significantly extend battery life. The companies also agreed to explore the use of POSCO Future M’s carbon material technology to improve the cost competitiveness of silicon anode material, which currently commands a premium price.

Young-jun Hong, Head of the POSCO Future M Research Institute, said, “The two companies have agreed to combine their world-class technology leadership to develop advanced battery materials,” and added, “We will continue to extend the partnership beyond technology development to the supply chain level.”

Sila is a battery materials company headquartered in California that holds proprietary technology for high-performance silicon anode materials. The company works with major automakers and battery manufacturers to increase EV driving range and reduce charging times, and operates a silicon anode material production facility in Moses Lake, Washington.

Meanwhile, POSCO Future M is showcasing the research and development activities of its partner companies, including Sila and Factorial, a collaborator on all-solid-state battery technology, in the Open Innovation zone of its exhibition at InterBattery, which opened on the 11th.

▲POSCO Future M and Sila signed a memorandum of understanding at COEX in Seoul on the 11th, pledging collaboration in the field of advanced battery materials. Pictured from left: Young-jun Hong, Head of the POSCO Future M Research Institute; Gleb Yushin, Co-founder and Chief Technology Officer (CTO) of Sila.

New plant to be established in Vietnam to fulfill orders; phased capacity expansion planned for additional orders

Expanded production capacity and stronger cost competitiveness expected to drive further global order growth

On the 16th, POSCO Future M signed a large-scale, long-term supply agreement with a global automaker to supply artificial graphite anode material.

The contract, valued at approximately KRW 1.0149 trillion, covers five years from 2027 to 2032, with provisions for extension by mutual agreement. The customer’s identity has been withheld until the conclusion of the contract for reasons of business confidentiality.

This is the largest supply agreement POSCO Future M has secured since entering the anode material business in 2011. The company currently supplies anode material to domestic battery manufacturers and companies, including GM, and previously signed a natural graphite anode material supply agreement with a major Japanese battery manufacturer in July 2025, followed by another agreement with a global automaker in October 2025 valued at approximately KRW 670 billion.

Having secured consecutive major anode material orders, POSCO Future M has established a solid foundation for sustained business growth by broadening its customer base and improving profitability.

This agreement complements the natural graphite anode material contract signed in October of last year, and POSCO Future M plans to pursue further collaboration with the same customer, extending into the cathode material and lithium business segments.

To fulfill this order, POSCO Future M has embarked on a phased expansion of its anode material production capacity. On the 5th, the company approved an investment of approximately KRW 357 billion to build a new plant for artificial graphite anode material in Vietnam. With this supply agreement, the company has secured the customer commitment underpinning its Phase 1 investment and plans to proceed with a Phase 2 investment to accommodate additional order volumes.

Building on its Vietnam investment, POSCO Future M is expected to expand its mass-production base to supply cost- and quality-competitive products to customers and continue growing its global order book.

This contract win is a testament to POSCO Future M’s supply chain solutions and technological capabilities, which are fully equipped to navigate trade regulations across major markets — achieved at a time when securing a stable anode material supply chain has become a growing priority for the EV and energy storage system (ESS) industries.

As Korea’s only graphite-based anode material producer, POSCO Future M has been at the forefront of supply chain stabilization for the domestic battery industry, beginning with the localization of natural graphite anode material in 2011 and the completion of its artificial graphite anode material plant in Pohang in 2021, thereby establishing a full-scale mass production system.

The company has also been working toward full vertical integration of its supply chain, spanning raw materials, intermediate inputs, and finished product manufacturing. For artificial graphite anode material, coal-based and petroleum-based coke derived from coal tar generated in POSCO’s steelmaking process serves as the primary feedstock. For natural graphite anode material, the company plans to establish a supply chain in which graphite ore is imported from Africa and other regions through the POSCO Group, with intermediate processing to be carried out at a spherical graphite plant currently being developed at Saemangeum.

POSCO Future M produces both natural and artificial graphite anode materials at scale, tailored to customer requirements, and has built a broad product portfolio by advancing the commercialization of silicon anode material for use in all-solid-state batteries and other next-generation applications. The company has earned broad recognition for its technological strengths through continuous process innovation aimed at improving productivity.

Leveraging these supply chain solutions and technological capabilities, POSCO Future M is currently in supply discussions with numerous customers in Korea, North America, and the EU for both cathode and anode materials. The company is committed to continuously strengthening its business competitiveness and expanding its sales, aiming to go beyond its standing as Korea’s only producer of both cathode and anode materials and emerge as a top-tier global battery materials player.

▲ Production line at POSCO Future M’s artificial graphite anode material plant in Pohang

▲ Production line at POSCO Future M’s artificial graphite anode material plant in Pohang

Company to pursue global orders in earnest, leveraging supply chain competitiveness, product portfolio, and process technology innovation

POSCO Future M is establishing an overseas plant for artificial graphite anode materials as part of its drive to expand global orders.

As trade regulations and protectionism intensify worldwide, the need to stabilize supply chains for key battery materials is becoming increasingly critical. Against this backdrop, POSCO Future M has been in ongoing discussions with multiple customers regarding artificial graphite anode material and is now making a strategic investment to scale up production capacity and strengthen its business competitiveness.

At a board meeting on the 5th, POSCO Future M approved an investment of approximately KRW 357 billion to build a new plant for artificial graphite anode materials in Thai Nguyen, an industrial city in northern Vietnam. Construction is set to begin in the second half of this year, with mass production targeted for 2028. The facility will be built on a site capable of supporting up to 55,000 metric tons of production capacity, with further expansion to proceed in phases as additional orders are secured.

Artificial graphite anode material is a key battery material well-suited to improving fast-charging performance and extending battery life. While demand for the material continues to grow steadily, heavy reliance on a limited number of countries has made supply chain diversification an urgent priority.

POSCO Future M currently operates an artificial graphite anode material plant in Pohang, Gyeongsangbuk-do Province, with an annual production capacity of 8,000 metric tons. Building on the manufacturing expertise gained through domestic operations, the company plans to produce cost-competitive products at its Vietnam facility for supply to global customers.

Vietnam offers significant advantages in reducing costs across investment, electricity, labor, and logistics, with a cost structure that remains competitive even relative to other Southeast Asian countries such as Indonesia. The country also benefits from well-developed industrial infrastructure, including a reliable power grid, and is actively cultivating favorable trade conditions with major markets, including the United States, through its export-driven economic growth strategy.

The United States last year introduced Prohibited Foreign Entity (PFE) requirements under the implementing regulations of the Inflation Reduction Act (IRA), while Europe has established targets under the Critical Raw Materials Act (CRMA) to reduce dependence on specific countries for strategic raw materials, reflecting a broader global push to restructure supply chains.

In response to these market dynamics, POSCO Future M has been working toward full vertical integration of its supply chain across the entire production process for both natural and artificial graphite anode materials — from raw materials and intermediate inputs through to finished products — and is increasingly recognized as a viable alternative for global automakers and battery manufacturers seeking to diversify their supply chains.

POSCO Future M first localized natural graphite anode material production in 2011, and went on to complete its artificial graphite anode material plant in Pohang in 2021, establishing a full-scale mass production system and playing a leading role in advancing supply chain self-sufficiency for Korea’s battery industry. The company has further diversified its anode material portfolio to cover the full product spectrum, expanding capacity for both natural and artificial graphite anode materials while also advancing the commercialization of silicon anode material, and has earned wide recognition for its technological capabilities through continuous process innovation aimed at improving productivity.

Leveraging its supply chain solutions and technological capabilities to navigate trade regulations across major markets, the company is currently in supply discussions with numerous customers in Korea, North America, and the EU for both cathode and anode materials. POSCO Future M is committed to continuously strengthening its business competitiveness and expanding its sales, aiming to go beyond its standing as Korea’s only producer of both cathode and anode materials and emerge as a top-tier global battery materials player.

▲ Production line at POSCO Future M’s artificial graphite anode material plant in Pohang.

Establishing a Collaboration Model Between Workers and Humanoid Robots to Expand Physical AI to Heavy and Heavy Industries

POSCO Group is accelerating the adoption of physical AI in manufacturing sites by pursuing a project to apply humanoid robots to steel product logistics management.

On the 3rd, POSCO Group signed an MOU at the POSCO DX Pangyo headquarters with representatives from four companies: POSCO, POSCO DX, POSCO Investment, and Persona AI, to implement industrial humanoid robots in the field.

Under the agreement, POSCO will identify potential work sites at its steelworks and assess their feasibility. POSCO DX will design and build a robot automation system and jointly develop a steelworks-specific model. POSCO Investment will support the implementation of a Proof of Concept (PoC), a small-scale preliminary test of ideas and technologies to determine their practical feasibility. Persona AI will be responsible for the development and implementation of a humanoid robot platform tailored to the steelworks industrial environment.

POSCO Group and Persona AI have agreed to begin testing Persona AI’s humanoid robot business in the logistics management of steel coils produced at the steelworks in February. Unloading rolled coils weighing tens of tons requires crane operation. The humanoid robot will collaborate with field workers to attach the crane belt to the coils. This is expected to be an example of human-robot collaboration creating a safer work environment.

Logistics work involving handling coils weighing 20 to 40 tons carries a high risk of accidents and the potential for musculoskeletal disorders due to repetitive tasks. The deployment of humanoid robots is expected to address these issues. Since last year, POSCO Group has been considering the introduction of humanoid robots in terminal logistics processes, such as transportation and material preparation, considering the characteristics of heavy construction sites. If this demonstration process confirms the mechanical safety and collaboration potential of humanoid robots with workers, the group plans to expand their deployment and apply them to various logistics sites.

Persona AI is a US-based humanoid robot startup founded in 2024 by renowned robotics engineers and industry experts. Prior to this agreement, POSCO Group invested a total of $3 million in Persona AI last year. Combining NASA’s robotic hand technology with its own precision control technology, Persona AI is developing industrial humanoid robots capable of everything from assembling fine components to handling heavy loads.

To respond promptly to the industrial paradigm shift, including AX, POSCO Group plans to expand its Intelligent Factory initiative across its manufacturing sites and create a safe and comfortable, technology-based workplace.

▲ (From the second from the left in the front row, moving right) Kyuho Chung, Head of POSCO DX Strategy Office; Minseok Shim, President & CEO of POSCO DX; Nicolaus Radford, CEO of Persona AI; Geunhwan Kim, President of POSCO Venture Capital, along with business representatives, pose for a commemorative photo after signing a Memorandum of Understanding (MOU) at POSCO DX’s Pangyo office for the on-site application of industrial humanoid robots.

Focus to deliver the steel “complete localization strategy” and tangible profits in secondary battery materials… positioning the energy business as the “Next Core”

Defined AI as a key driver that will shape the Group’s future… accelerating AX across all areas from manufacturing to office work

Chairman In-hwa Chang presented “overwhelming execution” and “creating results” as the Group’s key management themes for this year. It reflects his determination to deliver visible outcomes from future investments through bold structural transformation amid a complex crisis—and to prove those outcomes in “numbers.”

On Jan. 29, POSCO Group held its first Group management meeting of the year, chaired by Chairman In-hwa Chang, to review the Group’s business plans and major pending issues. The meeting focused on strategic measures to strengthen fundamental competitiveness by business segment and to deliver a clear performance rebound by proving management results in quantitative terms.

At the meeting, Chairman Chang cited the challenging environment—including intensifying global trade barriers and prolonged low growth—and emphasized, “To break through stagnation, we must boldly reshape the Group’s fundamentals with ‘profitability’ at the center.” He also reiterated that the Group will shift into a high-intensity emergency management mode to restore market confidence by delivering overwhelming results that exceed its management targets.

First, in the steel business, POSCO Group will reinforce a stable profit structure through structural cost innovation and expanded sales of high value-added products. This year, it will accelerate the transition to decarbonization by commencing construction of a hydrogen reduction steelmaking demo plant and completing the Gwangyang electric arc furnace, while fully rolling out the “complete localization strategy” in global markets. To that end, the Group plans to steadily advance the Louisiana steel mill project in the U.S., cooperation with Cleveland-Cliffs, and the establishment of a joint venture for an integrated steel mill in India.

For growth businesses such as secondary battery materials and infrastructure, POSCO Group will leverage favorable market conditions—such as a strong exchange-rate environment and firmer lithium prices—as strategic opportunities to accelerate clear and visible profit creation compared with last year. In secondary battery materials, the Group will fully begin commercial lithium production at POSCO-Argentina and complete the acquisition of an equity stake in a lithium mine with Mineral Resources in Australia, thereby converting its investments to date into meaningful earnings and driving tangible performance improvement.

In particular, Chairman Chang stressed that the energy business must establish itself as the Group’s “Next Core,” connecting steel and secondary battery materials. To achieve this, he said POSCO Group will continue investments to expand LNG production capacity and strengthen global trading capabilities, thereby expanding the energy business’ role as a core profit engine for the Group.

In addition, safety management innovation and faster AX (AI Transformation) were presented as key tasks for reshaping the Group’s fundamentals. Chairman Chang defined AI as a key driver that will determine the Group’s future, and said the Group will maximize enterprise-wide efficiency by adopting AI in manufacturing sites to secure a super-gap technology edge and by expanding AI adoption across office functions.

Closing the meeting, Chairman Chang said, “POSCO’s strength is finding opportunity even in a crisis and making a leap forward,” underscoring that this year will be the most critical one for the Group. He also reaffirmed, “With meticulous planning and overwhelming execution, we must turn future growth investments into concrete outcomes,” adding, “Let’s make this a year in which we clearly prove the Group’s fundamental competitiveness in numbers.”

Meanwhile, the quarterly POSCO Group management meeting is a forum to review the Group’s mid- to long-term strategy and key issues. The meeting was attended by Chairman In-hwa Chang and other Group executives, including CEOs of major business companies.

▲Chairman In-hwa Chang chairs the Group Technology Strategy Meeting held in March 2025.

Steel and LNG-centered energy businesses maintained profitability, offsetting temporary losses from major plant repairs and construction projects in Q4

This year’s investment achievements include overseas steel joint ventures and lithium mine equity acquisitions; commercial lithium production expected to drive profit rebound

73 restructuring cases completed, generating KRW 1.8 trillion in cash; additional 55 cases planned by 2028 to generate KRW 1 trillion for growth investments

POSCO Holdings announced its 2025 consolidated results, reporting sales of KRW 69.095 trillion, operating profit of KRW 1.827 trillion, and net profit of KRW 504 billion.

Despite a global economic slowdown and heightened protectionism, POSCO Holdings defended short-term profitability by leveraging solid earnings from its steel and LNG businesses, offsetting initial operating costs in the secondary battery materials segment and one-off losses in the infrastructure segment.

In particular, the company secured a long-term growth foundation through domestic and overseas steel investments and lithium mine acquisitions. This year, POSCO Holdings expects tangible results from overseas steel expansion, the commencement of commercial lithium production amid a recovering lithium price trend, resolution of one-off loss factors, and restructuring of loss-making subsidiaries.

[Steel segment]
On a separate basis, POSCO’s steel sales fell 6.8% year-on-year to KRW 35.011 trillion. However, structural cost innovations such as maximizing energy efficiency improved profitability, with operating profit rising 20.8% year-on-year to KRW 1.78 trillion, marking a successful rebound.

Although Q4 saw a temporary drop in production and sales due to rising raw material costs and major plant repairs, higher sales prices compared to the previous quarter helped defend profitability.

[Secondary battery materials segment]
POSCO Future M maintained profitability at the previous year’s level despite weak lithium prices. Newly completed plants, such as POSCO Argentina, began commercial production at the end of 2024, with initial operating costs reflected upfront, leading to a temporary decline in consolidated operating profit. The company plans to quickly offset these factors as operations stabilize.

[Infrastructure segment]
POSCO International maintained solid earnings by expanding its value chain through LNG production increases at Australia’s Senex Energy and acquiring an Indonesian palm company. POSCO E&C, despite increased plant orders, saw its losses widen due to one-off costs from construction suspensions.

POSCO Holdings noted that the temporary low point in Q4—caused by major plant repairs, costs from selling loss-making subsidiaries, and one-off construction losses—has passed. The company expects an upward trend in profits this year, driven by solid steel and LNG earnings and the start of commercial lithium production.

[Key management plans for 2026]
POSCO Holdings will execute major domestic and overseas investment plans and restructure low-profit/non-core assets to directly link them to profits.

• Steel segment: Strengthen specialized competitiveness at Pohang Works (energy steel) and Gwangyang Works (mobility steel), accelerate decarbonization with the start of construction on the hydrogen reduction steelmaking demo plant, and steadily advance overseas joint projects under the “complete localization strategy.”

• Secondary battery materials segment: Begin profitability improvement with the start of commercial lithium production in Argentina; Australia’s lithium mine equity acquisition will contribute to earnings immediately from the second half of the year.

• Infrastructure segment: Strengthen the energy value chain through LNG production expansion at Senex Energy in Australia and the acquisition of an Indonesian palm company, generating continuous additional profits.

[Restructuring plan]
POSCO Holdings will extend the restructuring of low-profit/non-core assets, initiated in 2024, through 2028, aiming to generate a total of KRW 2.8 trillion in cash to fund growth investments.

• Status: 73 cases completed by 2025, generating KRW 1.8 trillion in cash
• Plan: 55 additional cases from 2026 to 2028, generating KRW 1 trillion in cash