Producing high-purity xenon, krypton, and neon with an annual capacity of 130,000 Nm³… Capable of meeting 52% of domestic semiconductor demand

POSCO Group accelerates industrial gas business… Expanding specialty gas portfolio in synergy with steelmaking operations

POSCO Group has completed the construction of a high-purity rare gas plant for the semiconductor and aerospace industries, further strengthening its competitiveness in next-generation businesses linked with its steelmaking operations.

POSCO Air Solution (CEO Kim Dae-yeon), an industrial gas affiliate of POSCO Group, held a completion ceremony for its high-purity rare gas plant at the Donghoan site of Gwangyang Works on the 17th. Held in conjunction with the Electric Arc Furnace (EAF) completion ceremony, the event was attended by approximately 100 guests, including Chang In-hwa, CEO of POSCO Holdings, government officials, local government representatives, and executives and employees of client and partner companies.

POSCO Air Solution produces high-purity products using rare gases extracted from POSCO’s oxygen plants as feedstock. Recognizing the growing importance of rare gases in the semiconductor and aerospace sectors, POSCO established a dedicated new business organization in 2021 and expanded it into the Industrial Gas Business Division in 2023 to systematically prepare for market entry. The completion of this plant enables the localization of key materials for semiconductors and aerospace that were previously entirely import-dependent, which is expected to significantly enhance supply chain stability across the nation’s advanced industries.

The newly completed plant has an annual production capacity of 130,000 Normal cubic meters (Nm³)*, capable of meeting approximately 52% of the domestic semiconductor industry’s demand for rare gases. The facility refines crude gas extracted from the oxygen plants of POSCO’s steelworks into high-purity xenon (Xe), krypton (Kr), and neon (Ne). These rare gases are essential materials widely used across advanced industries, including semiconductor lithography and etching processes, as well as aerospace and medical applications.

*Note: Normal cubic meter (Nm³) is a unit used for flow rate and volume, where “N” stands for “Normal,” representing standard conditions (typically 0°C and 1 atm), and m³ represents the volume under actual operating conditions.

In his commemorative speech, POSCO Holdings CEO Chang In-hwa stated, “Amid intensifying instability in global supply chains for key materials, it is highly meaningful that we can now directly produce and stably supply essential materials for advanced industries that will shape the nation’s future, such as semiconductors and aerospace, using our own technology.” He added, “This milestone goes beyond merely building a factory; it will serve as a reliable pillar safeguarding the supply chain security of South Korea’s advanced industries.”

With the completion of the high-purity rare gas plant, POSCO Group plans to expand its portfolio into various specialty gas businesses in synergy with its steelmaking operations. By combining POSCO’s world-class steelmaking infrastructure with its advanced gas purification technology, the company aims to not only supply the oxygen and nitrogen required for the production of steel and rechargeable battery materials but also lead the high-value-added rare and specialty gas markets.

▲ On the 17th, POSCO Air Solution held a completion ceremony for its high-purity rare gas plant. (From left) Lee Jong-geun, President of Hanyang ENG; Jeon Hyeong-yeol, Director of the Korea Aerospace Research Institute (KARI); Woo Kwang-il, Chairman of the Gwangyang Chamber of Commerce and Industry; Jeong Tae-seong, Director General of the Yeosu Regional Office of Oceans and Fisheries; Lee Hee-geun, President of POSCO; Jeong In-hwa, Gwangyang Mayor; Chang In-hwa, CEO of POSCO Holdings; Zhang Yuchun, President of Zhongtai; Wu Zhangmin, Director of Weihua Group; Park Seong-hyeon, Gwangyang Mayor-elect; Shin Seong-won, Head of POSCO Corporate Planning Headquarters; and Kim Dae-yeon, President of POSCO Air Solution.

▲ On the 17th, Chang In-hwa, CEO of POSCO Holdings, delivers a commemorative speech at the completion ceremony of the high-purity rare gas plant.

▲ Lee Hee-geun, President of POSCO; Park Seong-hyeon, Gwangyang Mayor-elect; Chang In-hwa, CEO of POSCO Holdings; and Jeong In-hwa, Gwangyang Mayor, inspect the POSCO Air Solution high-purity rare gas plant.

Developing “Haptang” (hot metal mixing) technology to secure blast furnace-level quality, aiming to produce premium steel such as automotive steel sheets

Steadfastly executing the 2050 Decarbonization Roadmap… Establishing a business structure anchored in a decarbonized production system

POSCO (Representative Director and President Lee Hee-geun) has completed the construction of a large-scale Electric Arc Furnace (EAF) with an annual capacity of 2.5 million tons in Gwangyang, South Jeolla Province, officially embarking on the production of low-carbon steel.

The completion ceremony, held at Gwangyang Works on the 17th, was attended by Prime Minister Kim Min-seok, National Assembly members Kwon Hyang-yeop and Jo Gye-won, South Jeolla Provincial Council Chairman Kim Tae-gyun, Gwangyang Mayor Jeong In-hwa, and Gwangyang Mayor-elect Park Seong-hyeon. Key POSCO executives and representatives also attended, including Chang In-hwa, CEO of POSCO Holdings; Lee Hee-geun, President of POSCO; and Kim Seong-ho, Head of the POSCO Labor Union.

POSCO commenced construction of the new EAF in February 2024 to align with domestic and international decarbonization policies and proactively respond to customers’ growing demand for low-carbon steel products. The newly completed EAF is the largest single facility of its kind in South Korea, built with a cumulative workforce of 270,000 personnel and an investment of approximately KRW 600 billion.

While the traditional blast furnace-converter method—which inputs iron ore and coal (coke) into a blast furnace to produce molten iron and refines it in a converter—enables the mass production of high-quality steel, it is highly carbon-intensive. In contrast, an EAF recycles steel scrap, reducing carbon emissions by up to approximately 75%* compared to blast furnaces.

* Note: Compared to the average of 2017–2019, POSCO’s baseline years for calculating carbon reduction. This rate may vary depending on scrap supply conditions and power generation sources (based on crude steel, Scope 1 & 2).

POSCO is also focusing on developing “Haptang” (hot metal mixing) technology to enhance the quality of EAF-produced steel. This technology refines a mixture of molten iron produced from both the EAF and the blast furnace, enabling the production of premium steel while significantly reducing carbon dioxide emissions compared to conventional blast furnace operations. By securing additional core technologies—such as the selection and classification of scrap (the primary raw material) and precise composition control during the refining process—POSCO aims to mass-produce automotive steel sheets and electrical steel sheets by 2030.

To this end, POSCO has designated EAF-produced premium steel as one of its “Eight Strategic Products” and has accelerated the development of specialized products by forming an integrated project team spanning R&D, production, and sales. In addition, the company plans to concurrently develop “bridge technologies” that contribute to carbon reduction within the existing production system, such as hydrogen-rich gas injection into blast furnaces, top-and-bottom blowing converters, and carbon-reduced raw material technologies.

Recently, domestic carbon reduction requirements have intensified with the strengthening of Nationally Determined Contributions (NDCs) and the implementation of the Phase 4 Emissions Trading Scheme (ETS), alongside the full-scale rollout of the EU’s Carbon Border Adjustment Mechanism (CBAM). POSCO aims to transition to a decarbonized production system through its proprietary hydrogen reduction steelmaking technology, “HyREX.” Until HyREX is commercialized, the newly built EAF will play a pivotal role in driving greenhouse gas reductions and strengthening the company’s low-carbon product portfolio.

During the ceremony, Chang In-hwa, CEO of POSCO Holdings, emphasized, “The EAF completed today is not merely the addition of another facility; it is a powerful declaration of our commitment to resolving the defining challenge of our era—decarbonization—and reshaping the global market.” He added, “POSCO will proactively respond to the low-carbon steel demands of our global customers and further solidify our position as a leading provider of future materials.”

Prime Minister Kim Min-seok remarked, “The completion of the EAF at Gwangyang Works is a landmark event symbolizing the future of the steel industry as it evolves into an eco-friendly sector.” He promised, “The government will support the quality improvement and supply stabilization of steel scrap, and ensure the seamless execution of the hydrogen reduction steelmaking demonstration project.” He further emphasized, “The government will exert policy efforts to ensure that the hard work and dedication of the steel industry, which has served as a reliable pillar of our economy despite challenging domestic and international conditions, bear valuable fruit.”

POSCO is also accelerating the groundwork for the commercialization of HyREX. Following the Ministry of Land, Infrastructure and Transport’s approval of the Pohang National Industrial Complex plan revision last March, the reclamation of approximately 1.35 million square meters (410,000 pyeong) of public waters near Pohang Works has gained momentum. POSCO plans to complete the development of commercialization technology by 2030 using a 300,000-ton annual capacity HyREX demonstration facility, and progressively transition to a decarbonized production system.

▲ On the 17th, POSCO completed the construction of the EAF plant at Gwangyang Works. (From left) Gwangyang Mayor Jeong In-hwa; South Jeolla Provincial Council Chairman Kim Tae-gyun; National Assembly Member Kwon Hyang-yeop; Prime Minister Kim Min-seok; Chang In-hwa, CEO of POSCO Holdings; Kim Seong-ho, Head of the POSCO Labor Union; Lee Hee-geun, President of POSCO; and Gwangyang Mayor-elect Park Seong-hyeon.

▲ Prime Minister Kim Min-seok (left) and Chang In-hwa, CEO of POSCO Holdings, greet each other at the completion ceremony of the EAF plant at Gwangyang Works on the 17th.

▲ Prime Minister Kim Min-seok (right) and Chang In-hwa, CEO of POSCO Holdings, enter the completion ceremony of the EAF plant at Gwangyang Works on the 17th.

Participating entities sign a multilateral MOU to collaborate across the entire value chain, from advanced material development to real-vehicle drive motor validation

POHANG, South Korea – June 11, 2026 – POSCO announced today that it has launched a major collaborative research initiative with domestic automakers, auto parts manufacturers, and research institutes to develop next-generation, high-efficiency electrical steel sheets designed to maximize the energy efficiency of electric vehicles (EVs).

The kickoff meeting for the national R&D project, titled “Development of 6.5% Silicon-content Wide Electrical Steel Sheet and EV Efficiency-Enhancing Core and Drive Motor Manufacturing Technologies,” was held on June 11 at the Research Institute of Industrial Science & Technology (RIST) in Pohang, marking the official commencement of this groundbreaking technological development.

POSCO is leading the project as the principal R&D institution. A total of ten organizations from the industry, academia, and research sectors are participating as joint R&D partners: Hyundai Motor Company, SL Corporation, Polepair Electric, RIST, the Korea Institute of Industrial Technology (KITECH), the Korea Automotive Technology Institute (KATECH), the University of Ulsan, Pukyong National University, and the Korea Metal Materials Research Association (KOMERA).

The primary objective of this national project—supported by the Ministry of Trade, Industry and Energy (MOTIE) and managed by the Korea Evaluation Institute of Industrial Technology (KEIT)—is to secure manufacturing technologies for “6.5% Silicon-content Wide Electrical Steel Sheets,” a key material for high-efficiency motors, and to validate its performance in actual EV drive motors to verify its impact on improving EV efficiency.

Electrical steel sheets are critical materials for electric motors. As the silicon (Si) content increases, the material reduces “iron loss” (power loss occurring during high-speed rotation), thereby significantly enhancing motor efficiency. However, higher silicon content makes the steel extremely brittle, making it exceptionally difficult to manufacture and process into thin, wide sheets. Standardizing the mass-production process for wide sheets of this high-silicon steel is a major technical hurdle that global steelmakers are fiercely competing to overcome.

Following the kickoff meeting, the participating organizations signed a multilateral Memorandum of Understanding (MOU). Under this agreement, the consortium will establish an integrated research and development system that spans the entire value chain: from raw material development and core fabrication to drive motor manufacturing and real-vehicle efficiency validation. This comprehensive approach ensures that the research goes beyond simple material development to verify the practical applicability of the new steel in actual EV drive motors.

“This collaboration represents a pivotal turning point where the steel and future mobility industries join forces to usher in the era of electrification,” said Cho Myung-jong, Head of Future Steel R&D Center at POSCO. “We will concentrate our capabilities on developing high-value-added, advanced materials and component technologies that enhance energy efficiency, while maximizing the synergy among industry, academia, and research institutes.”

Through this project, POSCO aims to strengthen the competitiveness of the domestic steel and automotive value chains, securing a leading position in the rapidly growing global EV market.

▲ POSCO, along with representatives from Hyundai Motor Company and other participating organizations of the 10-member industry-academic-research consortium, pose for a commemorative photo at the kickoff meeting for the joint development of next-generation electrical steel technology, held at the Research Institute of Industrial Science & Technology (RIST) in Pohang on June 11.

Applying proprietary DLE technology, aiming for operation by 2027 and completion of technology verification by 2028
Strengthening global resource supply chain competitiveness under the strategy of “technological superiority and securing high-quality resources”

POSCO Holdings is accelerating the strengthening of its competitiveness in next-generation lithium extraction technology by becoming the first Korean company to conduct a direct Lithium Extraction (DLE) technology demonstration in the U.S.

On June 10, POSCO Holdings signed a cooperation agreement with Anson Resources, an Australian resource development company, at the POSCO Center in Seoul to build and operate a DLE demonstration plant in the Green River region of Utah, U.S.

DLE is a technology that can economically produce lithium from low-concentration lithium brines. It is drawing significant attention as a next-generation core technology in the global lithium industry due to its higher recovery rate and shorter production period compared to traditional evaporation methods.

Under this cooperation agreement, POSCO Holdings will verify the commercial viability of the technology across the entire process of designing, constructing, and operating the DLE demo plant in the U.S. Anson Resources will provide the site, infrastructure, and brine, while handling the overall permitting process for plant construction using its local network.

POSCO Holdings has been developing DLE technology since 2016, accumulating expertise in process design and overall operations by conducting pilot tests on brines from various regions, including Argentine brines.

This demonstration is highly significant as it marks the first time POSCO Holdings is validating its independently developed DLE technology in the global market, serving as a crucial starting point to confirm the commercial viability of next-generation lithium production technology. Furthermore, by proving its technological capability to secure economic feasibility even from low-grade resources, POSCO Holdings is expected to further strengthen its technological edge in the global brine lithium development market. It is also anticipated to lay the groundwork for expanding its lithium business in North America and establish a stable lithium supply chain based on its proprietary technology.

POSCO Holdings aims to complete and operate the demo plant by 2027 and plans to establish a foundation for commercialization by completing technology verification using actual brine by 2028.

Lee Ju-tae, President of POSCO Holdings, stated, “This demonstration is a strategic investment to preemptively secure next-generation technology and dominate the global lithium market. Based on our unrivaled technological competitiveness, we will further strengthen the competitiveness of our global lithium business, including in North America.”

Meanwhile, POSCO Holdings is pursuing “preemptive acquisition of high-quality resources” along with “absolute technological superiority” as the group’s core growth strategies. By combining the acquisition of premier resources, such as Argentine lithium brines and Australian mines, with the development of next-generation lithium production technologies, the company plans to lead the realization of “Sojae-Boguk” (contributing to national development through materials) by strengthening its competitiveness in the global resource supply chain.

▲ POSCO Holdings signed a cooperation agreement with Anson Resources on June 10 at the POSCO Center in Seoul for the construction and operation of a direct lithium extraction (DLE) demonstration plant in the Green River area of Utah, U.S.
(From left) POSCO Holdings’ Lee Dae-gyun, Senior Manager; Lee Sung-won, Head of the Energy Materials Business Development Office; and Lee Ju-tae, President; Anson Resources’ Bruce Richardson, CEO; Tim Murray, Director; and Mathew Beattie, CFO.

POSCO DX is embarking on the joint development of Physical AI-based robot intelligence technology applicable to various robots for performing high-risk and high-intensity tasks in industrial sites, together with NC AI, an AI specialist company.

POSCO DX (CEO Shim Min-suk) signed a Memorandum of Understanding (MOU) for the implementation of an AI-based autonomous robot work system on the 29th at NC AI (CEO Lee Youn-soo)’s Pangyo headquarters, with the attendance of officials from both companies, including Yoon Suk-june, Head of POSCO DX’s Robot Automation Center, and Kim Min-jae, CTO of NC AI. We plan to proceed with the implementation of a robot foundation model that combines POSCO DX’s robot simulation and control technologies with NC AI’s AI models.

Under this agreement, POSCO DX plans to perform motion planning and control simulation verification for robots to be applied to industrial sites, and to configure and provide a digital twin- based virtual test environment to ensure stable operation of the robots.

NC AI is responsible for developing AI models for the Robot Foundation. By collecting and analyzing industrial site data to enable robots to understand various work situations, the company plans to enhance robots’ decision-making capabilities and operational accuracy by developing and applying Vision Language Action(VLA) models based on this data. Furthermore, it will collaborate with POSCO DX on establishing and stabilizing a digital twin-based VLA simulation environment.

It is expected that when the Robot Foundation model jointly developed by the two companies is applied, industrial robots will be able to simultaneously understand visual information and verbal instructions to interpret and judge work situations on their own. This means that by enabling flexible responses to various variable factors that frequently occur in industrial settings, such as deviations in workpiece position or differences in interfaces between equipment, robots can handle even non-standard tasks that were previously limited by the rule-based control of existing industrial robots.

Through this, VLA- based robots are expected to not only replace hazardous or repetitive tasks previously handled by human workers but also naturally establish a collaborative system with other industrial robots on-site, thereby significantly enhancing safety, precision, and efficiency in manufacturing environments.

POSCO DX is continuously advancing industrial robot automation technology, centered around its Robot Automation Center. By implementing simulation-based verification and establishing standardized models, the company is enhancing the stability and deployment speed of industrial robots. Furthermore, by developing a heterogeneous robot operation platform, it is strengthening operational efficiency through the integrated management of various robots and real-time data analysis. This collaboration is significant as it represents an attempt to advance physical AI technology in industrial robot automation to the next level by combining POSCO DX’s foundational technologies with NC AI’s advanced AI capabilities.

Yoon Suk-june, Head of the Robot Automation Center at POSCO DX, stated, “Through continuous collaboration with companies possessing specialized technology, we are internalizing core solutions such as robot control and operation platforms and elevating the level of automation technology for high-risk and high-intensity sites.” He added, “We expect this collaboration to confirm the potential for utilizing general-purpose robots in industrial settings.”

Kim Min-jae, CTO of NC AI, said, “General-purpose robot technology is rapidly evolving into next-generation AI technology applicable in various industrial environments.” He continued, “Through our collaboration with POSCO DX, we will strengthen our competitiveness in robot AI technology and jointly lead the general-purpose physical AI ecosystem targeting the global market.”

Securing a global supply chain connecting Southeast Asian raw materials to permanent magnet production in the U.S.

Held a signing ceremony in Washington, D.C., attended by senior U.S. government officials and representatives from the Embassy of the Republic of Korea in the U.S.

Targeting mass production in 2028 to proactively respond to the restructuring of the supply chain for critical minerals in the U.S.

POSCO INTERNATIONAL (CEO Lee Kye-In) is making a full-scale entry into the U.S. market for rare earth separation and purification as well as integrated permanent magnet production.

On May 21 (local time), POSCO INTERNATIONAL signed an agreement with ReElement Technologies Corporation in Washington, D.C., to establish a joint venture for rare earth separation and purification production in the United States.

The signing ceremony was attended by POSCO INTERNATIONAL CEO Lee Kye-In, ReElement CEO Mark Jensen, senior officials from the U.S. Departments of State, Commerce, and Energy, and representatives from the Embassy of the Republic of Korea in the U.S. The agreement reaffirmed the U.S. government’s commitment to building an independent supply chain for critical minerals at the national security level, while also strengthening industrial cooperation between South Korea and the U.S.

The two companies plan to jointly invest a total of USD 200 million to build a new rare earth separation and purification plant in the U.S. with an annual capacity of 6,000 tons and establish an integrated complex for the fully integrated production of permanent magnets. POSCO INTERNATIONAL will lead the management of the joint venture as the majority shareholder, while ReElement will provide its core separation and purification technologies.

Of the total project cost of USD 200 million, USD 100 million will be allocated to plant and equipment construction and initial operating funds, while the remaining USD 100 million will be allocated for future expansion based on market demand.

Last September, the two companies signed a memorandum of understanding in the presence of officials from the Ministry of Trade, Industry and Energy to launch the “Boiler Maker Project,” which, with this agreement, has now entered the full-scale implementation stage. The project holds strategic significance for South Korea-U.S. industrial cooperation in diversifying the global rare earth supply chain, which is currently heavily concentrated in a few specific countries.

Rare earths are critical materials used in advanced industries such as electric vehicle (EV) motors, robotics, and AI data centers. In particular, heavy rare earth elements such as dysprosium (Dy) and terbium (Tb) play a vital role in the production of high-performance permanent magnets. As deposits are limited and most global production is concentrated in a few regions, supply stability is directly tied to industrial competitiveness.

Accordingly, the U.S. government is implementing various policies to strengthen domestic supply chains, including the launch of the Minerals Security Partnership (MSP) and “Project Vault,” a strategic stockpiling program for critical minerals Industry experts believe companies securing local production bases early will gain a competitive edge in the U.S. market, as the shortage of rare earth separation and purification infrastructure in the U.S. is unlikely to be resolved in the short term.

The joint venture plans to produce key raw materials for permanent magnets, including neodymium (Nd) and praseodymium (Pr) oxides, as well as heavy rare earth oxides such as dysprosium (Dy) and terbium (Tb), and later expand into permanent magnet manufacturing using these materials. In the first phase, the joint venture will establish a production system with an annual capacity of 3,000 tons, followed by a second-phase expansion to increase capacity to 6,000 tons annually. Following pilot production in the fourth quarter of 2027, the companies will begin full-scale mass production in 2028.

This investment by POSCO INTERNATIONAL is expected to go beyond the establishment of a separation and purification plant and serve as a key foundation for building an integrated value chain spanning raw material procurement, separation and purification, permanent magnet production, and EV traction motor core manufacturing. In addition to pursuing investments in Southeast Asian mines to secure additional raw material sources, the company is also operating a joint raw materials task force with ReElement for management of domestic and overseas mining resources as well as recycled materials, while reviewing plans to further expand the supply chain.

“This joint venture goes beyond the establishment of a simple purification plant and marks the starting point for building a critical minerals value chain in the U.S., spanning from raw materials to final materials,” said POSCO INTERNATIONAL CEO Lee Kye-In. “The combination of the two companies’ global supply chain capabilities and innovative separation and purification technologies will create significant synergy.”

ReElement CEO Mark Jensen said, “By combining ReElement’s separation and purification platform with POSCO INTERNATIONAL’s global capabilities and industrial scale, we will build an integrated production system that addresses supply chain gaps in the market,” adding, “Both companies will work together to establish a stable supply chain that supports national security, clean energy, and next-generation advanced technologies.”

Since Chairman Chang In-Hwa took office, the POSCO Group has been strengthening supply chain stability and enhancing its competitiveness in the materials market by proactively securing high-quality global resources in critical minerals sectors, including rare earths and battery materials. In April, POSCO Holdings consecutively signed an agreement to acquire lithium brine mining rights in Argentina and another agreement to invest in a lithium mine in Australia.

Meanwhile, ReElement Technologies Corporation, an affiliate of NASDAQ-listed American Resources Corporation (NASDAQ: AREC), is a leading company in the rare earth and critical minerals separation and purification sector. Based on its proprietary separation and purification process, the company converts a wide range of raw materials, including recycled materials recovered from permanent magnets, lithium-ion batteries, and industrial, defense, and technology waste, as well as ores, brine, and coal by-products, into high-purity products. Through this process, the company supports the development of a circular supply chain that balances economic efficiency with environmental sustainability.

▲ (From left) Mike Kopp, Senior Advisor to the U.S. Secretary of Energy; Mark Jensen, CEO of ReElement; Lee Kye-in, President & CEO of POSCO International; and Park Chan-ki, Commercial Attaché at the Embassy of the Republic of Korea in the United States.

▲ (From left) Seo Yong-deok, Head of POSCO International’s North America Region; Lee Kyung-jin, Head of the Steel Business Division; Joshua Kroon, Deputy Assistant Secretary at the U.S. Department of Commerce; William Kimmitt, Under Secretary for International Trade at the U.S. Department of Commerce; Lee Kye-in, President & CEO of POSCO International; Mark Jensen, CEO of ReElement; Shane Tragethon, Vice President of International Strategy at ReElement; Park Chan-ki, Commercial Attaché at the Embassy of the Republic of Korea in the United States; and Kim Kyung-chan, CEO of POSCO-America.

Silicon nano-sizing technology and carbon composite technology substantially reduce volume expansion… overcoming the biggest barrier to commercialization

Targeting mass production and supply in 2028, taking into account market demand and evolving market conditions

POSCO Future M has secured mass-production technology for silicon anode materials and completed preparations to capture the next-generation battery market.

Silicon anode materials offer significantly higher energy density and faster charging rates than conventional graphite-based anode materials, and market demand is expected to expand rapidly, driven by high-performance, high-power batteries for applications such as electric vehicles (EVs) and robotics.

The silicon anode material developed by POSCO Future M can store more than four times the energy of graphite-based anode materials. Silicon anode materials are typically blended with graphite-based anode materials for use in batteries; in testing with a blending ratio of 20% or more, POSCO Future M’s material retained over 80% of its initial capacity after 1,000 charge/discharge cycles. This result notably surpasses the single-digit blending ratios of conventional batteries, demonstrating that the company has achieved not only high capacity but also long-term performance retention.

Volume expansion during charge/discharge cycles has long been identified as the primary challenge to the commercialization of silicon anode materials, despite their high energy storage capacity. The Technology Research Laboratory of POSCO Future M has addressed this challenge by applying proprietary silicon nano-sizing and carbon composite technologies to substantially reduce expansion, thereby securing a commercially viable solution.

“Silicon anode materials are a next-generation core material that will determine battery performance,” said Young-jun Hong, Head of the Technology Research Laboratory. “Building on our accumulated materials expertise and mass-production experience, we will deliver the best solutions to our customers while continuing to expand our competitive edge in the global market.”

POSCO Future M has secured silicon anode mass-production technology through product testing and quality verification with key domestic and international customers, and is targeting mass production and supply in 2028, taking a comprehensive view of overall market demand and evolving market conditions.

Demand is expected to gain momentum, particularly in the premium EV segment, in which extended driving range and reduced charging time are simultaneously required, with high potential for expansion into next-generation markets such as humanoid robots and urban air mobility (UAM). POSCO Future M continues to refine its technical capabilities through collaboration with Factorial, a US-based solid-state battery specialist, across both the cathode and silicon-anode material segments.

From now on, POSCO Future M plans to enhance competitiveness through advances in process technology and productivity improvements, and to build a stable supply infrastructure to meet the rapidly growing demand for silicon anode materials.

▲ POSCO Future M has secured mass-production technology for silicon anode materials — widely regarded as a next-generation core battery material — and completed preparations to capture the next-generation battery market. Pictured is the exterior of POSCO Future M’s silicon anode material demonstration plant, located in Pohang.

Secured the right to be supplied with 30% of the lithium concentrate allocated to the joint venture from the Wodgina and Mt. Marion mines, expecting dividend income and synergies with downstream processing.

Realizing the vision of “Sojae-Boguk” (contributing to national development through materials) by preemptively securing high-quality global resources, further strengthening competitiveness in rechargeable battery materials

POSCO Holdings (CEO Chang, In-Hwa) is further strengthening its supply chain competitiveness for rechargeable battery materials by signing a stake investment agreement with a top-tier Australian lithium mine to ensure a stable supply of high-grade spodumene.

On the 30th, POSCO Holdings signed a lithium mine stake investment agreement worth approximately USD 765 million (approx. KRW 1.1 trillion) with Mineral Resources, an Australian mining and mining services company, in Perth, Australia.

This agreement materializes the investment plan for Australian lithium mines announced last November. POSCO Holdings will establish a new intermediate holding company with Mineral Resources and acquire a 30% stake in it.

Through this contract, POSCO Holdings has secured the right to be supplied with 30% of the lithium concentrate produced by the joint venture (LithiumCo) from the Wodgina and Mt. Marion mines in Western Australia.

Wodgina and Mt. Marion are considered premier lithium mines in Australia. The Wodgina mine is ranked among the top 5 global mines, boasting a high concentrate grade of 5.5% and reserves of approximately 6.2 million tons (lithium carbonate equivalent). The Mt. Marion mine, with reserves of approximately 2.2 million tons, is recognized as a core asset capable of stable lithium supply based on its proven production capabilities and long operational history.

Through this stake agreement, POSCO Holdings plans to not only secure stable dividend income but also solidify its lithium value chain—from raw material mining to material production—by obtaining long-term supply rights for lithium concentrate.

Lee Ju-tae, President of POSCO Holdings, stated, “This collaboration is highly significant as it combines Mineral Resources’ mining operational expertise with POSCO Holdings’ downstream processing technology to contribute to the stabilization of the global battery material supply chain. Based on our solid mutual trust, we will continue to strengthen our long-term partnership in the global lithium market.”

Chris Ellison, CEO of Mineral Resources, remarked, “We are delighted to sign this agreement with POSCO Holdings, which marks a significant milestone in establishing a robust foundation for a partnership that will span decades. We look forward to finalizing the remaining procedures, including merger filings, and completing the transaction promptly.” He added, “This partnership is a landmark case of a major Korean company investing in the Australian lithium industry. We will concentrate all our capabilities to ensure that the Wodgina and Mt. Marion mines reach their full potential as the world’s best hard rock lithium assets.”

Following the recent acquisition of additional lithium salt lakes in Argentina and this investment agreement in Australian spodumene, POSCO Holdings is executing its strategy of “preemptive acquisition of global high-quality resources,” a key focus since POSCO Holdings CEO Chang, In-Hwa took office. The POSCO Group plans to realize its vision of “Sojae-Boguk”—contributing to national development through materials—by localizing rechargeable battery materials and strengthening raw material self-sufficiency, thereby solidifying its competitiveness in the global rechargeable battery material market.

▲ POSCO Holdings signed a lithium mine investment agreement worth USD 765 million with Mineral Resources in Perth, Australia, on the 30th. (From left) Josh Thurlow, Chief Executive of Lithium at Mineral Resources; Mark Wilson, CFO of Mineral Resources; Chris Ellison, CEO of Mineral Resources; Lee Ju-tae, President of POSCO Holdings; and Lee Sung-won, Head, and Lee Chul-kyu, Vice President, of the Energy Materials Business Development Office.

▲ A view of the Wodgina lithium mine in Western Australia, owned and operated by Mineral Resources.

Reduced settlement period from five days to three, improving fund management efficiency

POSCO INTERNATIONAL (CEO Lee Kye-In) announced on the 23rd that it issued blockchain-based digital bonds, marking the first instance among non-financial companies in Korea.

Digital bonds are securities in which the entire process of issuance, registration, trading and settlement is carried out using blockchain technology, offering enhanced security, faster settlement and greater accessibility for global investors compared with traditional bonds.

Valued at about KRW 140 billion (approximately HKD 780 million), the digital bonds issued by POSCO INTERNATIONAL were placed privately. The global financial institution HSBC served as the sole lead manager. The issuance marks the second such case in Korea, following Mirae Asset Securities, and the first by a non-financial company.

POSCO INTERNATIONAL reduced the settlement period for conventional foreign-currency bonds from five business days to three with the introduction of digital bonds. The move is expected to improve fund management efficiency by increasing the speed of capital turnover, while further expanding investor accessibility as a globally integrated business company.

Furthermore, the company expects a reduction in procurement interest rates through the “Issuance Cost Subsidy Scheme,” which Hong Kong financial authorities are providing on a temporary basis to vitalize the digital bond market.

As a global trading company centered on energy, materials, and agro businesses, POSCO INTERNATIONAL maintains a business structure in which stable foreign currency procurement is vital. Starting with this issuance, the company plans to accelerate the digitalization of finance while proactively responding to the markets of smart contracts and security token offerings (STOs, securities that divide real financial assets based on blockchain for issuance and distribution).

Meanwhile, POSCO INTERNATIONAL and HSBC held a signing ceremony for the issuance of digital bonds on the 16th at HSBC headquarters in Jung-gu, Seoul. The event was attended by Chung Kyung-Jin, Head of Corporate Strategy and Finance Group at POSCO INTERNATIONAL, and Rhee Sang-ho, CEO of HSBC Securities. Taking this issuance as an opportunity, both companies agreed to strengthen cooperation in the field of digital finance, including the introduction of blockchain and digital financial technologies, financing efficiency, and digital transformation.

“This issuance is a milestone that realizes digital transformation in the fund procurement sector following the introduction of a blockchain-based global payment system last year,” Chung Kyung-Jin, Head of Corporate Strategy and Finance Group at POSCO INTERNATIONAL, remarked at the signing ceremony. “We are actively promoting a full-scale digital transformation based on our digital transformation (DX) master plan and will proactively respond to changes in the digital finance environment, such as the STO market, to further strengthen our procurement competitiveness in the global market.”

Construction of an integrated steel mill in Odisha with an annual crude steel capacity of 6 million tons… Aiming for completion by 2031

A representative case of POSCO Group’s “Complete Localization Strategy” to preoccupy the high-growth Indian steel market

Establishing a “Virtuous Cycle Growth Model” where global profits fund domestic decarbonization transition investments

POSCO (President: Lee, Hee-geun) is embarking on a significant expansion of its global steel business by commencing the construction of an integrated steel mill* in India, a high-growth market with a population of 1.46 billion.

*Integrated Steel Mill: A steel plant equipped with the full range of processes, including ironmaking (producing molten iron), steelmaking (removing impurities), and rolling (producing finished steel products)

On the 20th (local time), POSCO signed a Joint Venture Agreement (JVA) with JSW Steel, India’s leading steelmaker, to build an integrated steel mill in India. This collaboration, built on a strong partnership between the two companies, aims to target high-profit markets within India and further strengthen the global steel supply chain.

The signing ceremony was attended by top executives from both groups, including Chang, In Hwa, CEO of POSCO HOLDINGS, Sajjan Jindal, Chairman of JSW Group, Lee, Hee-guen, President of POSCO, and Jayant Acharya, CEO of JSW Steel.

Following a direct meeting and Memorandum of Understanding (MOU) between CEO Chang, In Hwa and Chairman Sajjan Jindal in October 2024, the two companies solidified their cooperation through a HOA* in July 2025. With this final contract, the joint venture now enters the full-scale construction and execution phase. The joint venture is structured as an equal partnership, with each company holding a 50% stake.

*HOA: Non-Binding Heads of Agreement.

The new integrated steel mill will be blast-furnace-based, featuring a complete production system—from ironmaking, steelmaking, and hot rolling to cold rolling/galvanizing—capable of producing high-value-added premium steel. The facility will have an integrated production capacity of 6 million tons of crude steel. A site has been secured in Odisha, offering proximity to iron ore mines and efficient access to logistics, power, and infrastructure. The project aims for completion by 2031, following a 48-month construction period after groundbreaking.

Both companies are reviewing plans to combine POSCO’s low-carbon operational technology and Smart Factory capabilities with JSW’s renewable energy infrastructure to supply a portion of the plant’s power with renewable energy. Through this, they intend to establish a low-carbon production system that aligns with the “Green Steel Taxonomy” established by the Indian government in December 2024, the first of its kind in the world.

President Lee, stated, “Through this joint venture, we will combine POSCO’s innovative steelmaking technology with JSW Group’s strong local competitiveness. We are committed to creating future value and making a substantial contribution to the industrial development and economic growth of both nations.”

CEO Jayant Acharya commented, “This partnership with POSCO will serve as an opportunity to unite the vision and determination of both companies. We expect this to be a significant step in strengthening the Indian steel ecosystem and solidifying the national industrial value chain.”

The Indian steel mill construction project, a long-held ambition for POSCO, has finally come to fruition as the “Complete Localization Strategy” achieved tangible results following the inauguration of CEO Chang.

Since 2004, POSCO has explored entering the upstream sector in India on four separate occasions but faced challenges such as finding the right joint venture partner and securing land. However, the company successfully carried out downstream investments, including electrical steel and automotive steel sheet plants, and has accumulated extensive business experience in India by strengthening its partnership with the JSW Group, which owns India’s leading steelmaker.

A representative example of this robust partnership occurred in 2022 when the Pohang Steelworks was flooded due to Typhoon Hinnamnor. At that time, JSW Group readily provided POSCO with equipment originally being manufactured for its own hot rolling mill, significantly accelerating the recovery of POSCO’s No. 2 Hot Rolling Mill.

Driven by GDP growth, urbanization, population increases, and manufacturing expansion, India is a high-growth market where steel consumption has grown by over 10% annually in recent years. In particular, demand for high-value-added steel is expected to rise as the premium market for automotive and home appliances expands due to increasing incomes and a shift toward premium consumption patterns.

POSCO Group plans to directly overcome the crisis of global protectionism through its “Complete Localization Strategy,” which includes building the integrated steel mill in India, investing in the steel plant in Louisiana, U.S., and collaborating with Cleveland-Cliffs. Meanwhile, in Korea, the company is focusing on high-value-added products, transitioning to Intelligent Factories through the integration of AI and robotics, and developing Korean-style hydrogen reduction steelmaking to secure future growth drivers.

Notably, as CEO Chang mentioned in his 2026 New Year’s address, this investment is highly significant as it establishes a crucial bridgehead for a virtuous cycle: utilizing profits generated in global markets to fund decarbonization transition investments back in Korea.

▲ POSCO signed a Joint Venture Agreement with JSW Steel, India’s No. 1 steelmaker, on the 20th to build an integrated steel mill. (From right) Chang, In Hwa, CEO of POSCO HOLDINGS; Lee, Hee-guen, President of POSCO; Jayant Acharya, CEO of JSW Steel; and Sajjan Jindal, Chairman of JSW Group.