Set to complete 50,000-ton lithium hydroxide production system in 2027 by linking with Yulchon downstream process; pursuing lithium carbonate production for ESS and LFP batteries at Plants 3 and 4

CHANG In Hwa, CEO of POSCO HOLDINGS, personally oversees operations in Argentina to execute Triple-Core strategy: “Leaping forward as Korea’s leading resource development company to contribute to supply chain stability”

POSCO HOLDINGS has completed the upstream process of its second brine lithium plant in Argentina, laying the foundation for a lithium hydroxide production system with an annual capacity of 50,000 tons eight years after acquiring the mining lease for the Hombre Muerto salt lake in 2018.

POSCO HOLDINGS held a completion ceremony for the upstream process of its second brine lithium plant on October 6 (local time) near the Hombre Muerto salt lake, located 4,000 meters above sea level. The event was attended by CHANG In Hwa, CEO of POSCO HOLDINGS; PARK Hyun, President of POSCO-Argentina; Karina Milei, Secretary General of the Presidency; Diego Santilli, Chief of the Cabinet of Ministers; Gustavo Saenz, Governor of Salta Province; Raul Jalil, Governor of Catamarca Province; and LEE Jong Hwa, South Korean Ambassador to Argentina.

At the completion ceremony, CHANG In Hwa, CEO of POSCO HOLDINGS, said, “Since 2014, when I was head of the New Business Office, I have personally visited sites in search of salt lakes suitable for lithium development. I am deeply moved that we have overcome numerous challenges in such an extreme environment, 4,000 meters above sea level, to reach today’s completion.” He added, “With this completion, POSCO group has taken another step toward becoming Korea’s leading resource development company.” He further emphasized, “We will continue to proactively secure competitive resources, turn them into production and profit, and ensure a stable supply of the critical minerals essential to the nation’s industries.”

This completion is significant in that POSCO group, having proactively secured lithium resources, has further expanded its commercial production base. In addition, as it will be linked to the lithium production plant under construction in the Yulchon Industrial Complex in Jeollanam-do, it is expected to help revitalize Korea’s rechargeable battery industry.

The Plant 2 upstream facility, which POSCO HOLDINGS completed with a total investment of $954 million, has an annual production capacity of 23,000 tons of lithium carbonate. Combined with Plant 1’s existing capacity of 25,000 tons, the company’s total commercial production capacity in Argentina has now expanded to 48,000 tons.

Furthermore, once the lithium carbonate produced at the Plant 2 upstream facility is converted into 25,000 tons of battery-grade lithium hydroxide per year through the downstream process scheduled for completion at the Yulchon Industrial Complex in Jeollanam-do in 2027, the company will complete a brine-based lithium hydroxide production system with a total capacity of 50,000 tons.

Recognizing the growth potential of lithium, POSCO group began developing its own lithium extraction technology in 2010 and has continued to make proactive investments, including the acquisition of the Hombre Muerto salt lake in Argentina in 2018. These efforts paid off in 2024, when the company completed Plant 1 with an annual production capacity of 25,000 tons and began commercial production.

POSCO group’s resource development capabilities are backed by policy support from both the South Korean and Argentine governments. Ahead of the South Korea-Argentina summit held in July, POSCO-Argentina, POSCO group’s lithium business entity in Argentina, became the first South Korean company to obtain approval under RIGI (Régimen de Incentivo para Grandes Inversiones), the Argentine government’s incentive regime for large investments, securing benefits such as corporate tax cuts and tariff exemptions. In August, it also secured approval for a $700 million short-term credit facility from IDB Invest (Inter-American Investment Corporation), establishing a stable foundation for funding its operations.

POSCO HOLDINGS will work to bring the newly completed Plant 2 to normal operation at an early date and accelerate new investments in Plants 3 and 4 to complete a 100,000-ton brine lithium production system by 2033. Plants 3 and 4 will each have an annual lithium carbonate production capacity of 25,000 tons, enabling the company to respond to the growth of the energy storage system (ESS) market driven by the expansion of AI data centers and to rising demand for lithium iron phosphate (LFP) batteries. Through this, the company aims to complete a balanced product portfolio encompassing both lithium hydroxide and lithium carbonate.

On the day of the completion ceremony, POSCO-Argentina signed a memorandum of understanding (MOU) with the provincial governments of Salta and Catamarca to advance Plants 3 and 4. Both provincial governments agreed to cooperate on the administrative support and permits needed to move the project forward.

During the visit, CEO CHANG personally inspected Plant 2’s production facilities and completion status and reviewed plans for Plants 3 and 4 as well as areas of cooperation with the local governments, lending momentum to the expansion of the Argentina lithium business.

Under its “Triple-Core” strategy, which fosters industrial resources, strategic resources, and energy resources as the group’s core growth pillars, POSCO group aims to strengthen its business competitiveness across the value chain, from resource acquisition to development, production, and revenue generation, thereby leaping forward as Korea’s leading resource development company and contributing to the stabilization of the nation’s critical mineral supply chain.

▲ Participants pose for a commemorative photo at the completion ceremony for the upstream process of POSCO-Argentina’s second brine lithium plant on October 6 (local time). From left: BANG Seok Ju, Head of Plant Business Division at POSCO E&C; Flavia Royon, Chair of the Senate Mining, Energy, and Fuel Committee of Argentina; Fernanda Avila, Chair of the Chamber of Deputies Mining Committee; KIM Ki Soo, Head of POSCO N.EX.T Hub; LEE Jong Hwa, South Korean Ambassador to Argentina; Karina Milei, Secretary General of the Presidency; CHANG In Hwa, CEO of POSCO HOLDINGS; Diego Santilli, Chief of the Cabinet of Ministers; Gustavo Saenz, Governor of Salta Province; Raul Jalil, Governor of Catamarca Province; PARK Hyun, President of POSCO-Argentina; and Sergio Lew, Chief Industries Officer at IDB Invest.

▲ POSCO-Argentina, POSCO HOLDINGS’ lithium production subsidiary, held a completion ceremony for the upstream process of its second brine lithium plant on October 6 (local time) and signed an MOU with the provincial governments of Salta and Catamarca to advance Plants 3 and 4.

Expands supply from a single ternary product to LFP and LMO, as well as synthetic graphite anode materials… completing a “one-stop supply system” for secondary battery materials

Builds a K-battery value chain through cooperation between the two companies… enhancing global competitiveness

POSCO Future M (CEO EOM Gi Chen) will supply Samsung SDI with KRW 6 trillion worth of LFP (lithium iron phosphate) cathode materials on a long-term basis.

On the 6th, POSCO Future M signed a long-term supply contract for battery materials with Samsung SDI to enable the “one-stop supply” of secondary battery materials, including LFP cathode materials.

The formal contract sharply increases the volume to more than double what was agreed with Samsung SDI in August, when the two companies reached a large-scale, long-term supply agreement for 190,000 tons of LFP cathode materials from 2027 through 2032.

The contract signed with Samsung SDI that day is a comprehensive agreement that brings together the individual contracts for the main products POSCO Future M supplies, and is expected to serve as a foundation for managing product-specific contracts more systematically going forward. As the first integrated supply agreement between POSCO Future M and Samsung SDI, it is also anticipated to be a turning point that solidifies the two companies’ strategic partnership.

Under this contract, the two companies agreed to amend the supply contract POSCO Future M signed with Samsung SDI in 2023, expanding the products covered from NCA alone to include LFP cathode materials. They also agreed to broaden their future cooperation to include LMO (lithium manganese oxide) cathode materials and synthetic graphite anode materials, among others.

POSCO Future M expects its supply volume to rise by approximately 45% from existing levels as its supply lineup broadens from mainly NCA to LFP, LMO, and synthetic graphite, making the company a key supplier of secondary battery materials to Samsung SDI.

Going forward, Samsung SDI will be able to secure non-PFE (non-prohibited foreign entity) cathode and anode materials and stabilize its materials procurement supply chain. POSCO Future M will be able to use the confirmed volumes to improve utilization rates and to plan future facility expansion and raw material procurement with greater precision, raising not only its investment efficiency but also its business predictability.

By building a K-battery value chain through their strategic partnership, the two companies can enhance their global competitiveness in the in the ESS market as well as the electric vehicle market.

POSCO Future M is the only company in Korea with a materials portfolio that enables it to supply natural and synthetic graphite anode materials, as well as a wide range of cathode materials, including ternary materials (such as NCA and NCM), LFP, and LMO, among others. The company continues to discuss supplying cathode and anode materials to major battery makers and automakers, building on this portfolio to navigate global trade regulations.

In July, POSCO Group announced its future growth strategy, presenting a vision to build a Triple-Core system and grow into a “national supplier of critical resources.” The system spans industrial resources (steel), strategic resources (such as lithium, cathode and anode materials, and rare earths), and energy resources (LNG and renewable energy).

POSCO Future M aims to continue strengthening the competitiveness of its cathode and anode materials business by leveraging POSCO Group’s value chain, including lithium salt lakes and graphite mines, and to further solidify its position as a core strategic resources company within the group.

▲ On the 6th, POSCO Future M and Samsung SDI met at Samsung SDI’s Dongtan site to sign a long-term supply contract for battery materials to enable the “one-stop supply” of secondary battery materials, including LFP cathode materials. (From left) YOON Tae Il, Head of the Energy Materials Marketing Division at POSCO Future M, and LEE Kwang Soo, Head of the Purchasing Center at Samsung SDI

Securing Economical ‘Clean Energy’ and ‘Creating a Low-Carbon Market’ are Keys to Completing the Decarbonized Ecosystem

Expanding from the Southeastern Cluster Demonstration to the Southwestern Region… Contributing to the Green Transition of Korea’s Manufacturing Industry

On October 7, POSCO group (CHANG In Hwa, CEO of POSCO Holdings) attended the ‘Korean Green Transformation (K-GX) Strategy’ event presided over by the President and announced its plan to ‘Build a Decarbonized Industrial Ecosystem based on Steel GX,’ a K-GX signature project.

* Korean Green Transformation (K-GX) Strategy: A national strategy aimed at simultaneously achieving carbon neutrality and economic growth by promoting the green transition across all industries under three main directions: ‘New Growth Engine GX, GX for All, and Sustainable GX.’

POSCO group emphasized that Steel GX must be approached at the level of an ‘industrial ecosystem’ where clean energy, technology, markets, and policies are organically connected, going beyond the efforts of individual companies.

Accordingly, POSCO group will collaborate with the government to build an ecosystem encompassing everything from clean energy supply to the utilization of low-carbon steel, centered on ‘HyREX,’ its proprietary Korean hydrogen reduction steelmaking technology. POSCO group plans to continue its transition to a low-carbon system by promoting technological development and demonstration in phases.

In particular, POSCO group stated that the timely supply of stable and economical clean energy is essential, considering the characteristics of the hydrogen reduction steelmaking process, which operates continuously for 24 hours. The company explained that a true process transition and the success of Steel GX are only possible when supported by large-scale electricity and clean hydrogen.

Furthermore, the creation of a ‘Green Premium Market,’ where the value of low-carbon steel can be properly recognized and rewarded, was presented as an important task. A complete decarbonized industrial ecosystem can only be built when accompanied by policy support such as the standardization of low-carbon steel and the Act on the Promotion of Purchase of Green Products.

To this end, POSCO group proposed ‘TIMUP,’ a public-private cooperation system encompassing Technology, Installation, Market, Utility, and Policy. Under this framework, roles are divided: companies are responsible for developing innovative technologies and transitioning facilities, while the government supports the foundation for clean energy supply, the creation of low-carbon markets, and infrastructure development.

Additionally, POSCO group proposed the Southeastern Cluster centered around Pohang as the starting point for Steel GX. By 2028, it plans to build a HyREX demonstration facility with an annual capacity of 300,000 tons and create a steel decarbonization cluster connecting the clean hydrogen supply chain with the Pohang and Ulsan industrial complexes. Through this, the company expects an economic effect of approximately KRW 6 trillion, the creation of 14,000 jobs, and an additional carbon reduction of 560,000 tons annually in the Southeastern region alone.

After verifying the Southeastern Cluster model centered on Pohang, which will preferentially introduce the HyREX demonstration facility, POSCO group plans to gradually expand Steel GX to the Southwestern region centered on Gwangyang in the future.

LEE Ju Tae, President of POSCO Holdings, stated, “Steel has grown alongside Korea’s manufacturing industry as the ‘rice of industry’ for over half a century.” He added, “Under the government’s K-GX strategy, the public and private sectors will team up to create a decarbonized industrial ecosystem based on the creation of a low-carbon market and the supply of economical clean energy. We will fulfill our role in achieving national carbon neutrality and the green transition of the manufacturing industry while growing together with local communities.”

POSCO group plans to not only enhance the competitiveness of the steel industry but also support the green transition of high-tech strategic industries such as mobility, AI data centers, and robotics, thereby contributing to the GX of Korea’s overall manufacturing industry.

With this contract, now supplies cathode and anode materials to all three Korean battery makers… strengthening its foundation for mid- to long-term growth

Covers three years from next year through 2029, extendable by two more years upon mutual agreement

POSCO Future M (CEO EOM Gi Chen) has signed a large-scale supply contract with SK On for LFP (lithium iron phosphate) cathode materials.

Hard on the heels of last month’s long-term agreement to supply 190,000 tons of LFP cathode materials to a Korean battery maker, the company has now secured another major contract as it moves into the LFP market in earnest.

POSCO Future M has been working with SK On as a supplier of anode materials and plans to strengthen the partnership further through this contract, its first to supply SK On with cathode materials. The contract also means POSCO Future M now supplies cathode and anode materials to all three Korean battery makers, broadening its customer portfolio and putting its mid- to long-term growth on an even firmer foundation.

The contract, signed on the 22nd, is worth approximately KRW 1.1 trillion over three years, from 2027 through 2029, and can be extended by an additional two years upon agreement between the two companies.

While LFP batteries have lower power output than ternary batteries such as NCM (nickel-cobalt-manganese) and NCA (nickel-cobalt-aluminum), their strengths lie in competitive pricing and a long lifespan. With power demand recently surging due to the build-out of AI data centers, among other factors, demand for LFP batteries used in ESS is growing to ensure a stable power supply. LFP batteries are also increasingly being adopted in the electric vehicle market, particularly in entry-level models.

POSCO Future M is actively responding to customer demand by adding LFP cathode materials to its existing portfolio centered on ternary (NCM and NCA) materials. The company recently completed converting part of its high-nickel cathode material production lines at the Pohang plant to LFP cathode material production, and is set to begin mass-production supply from the end of this year. POSCO Future M plans to continue expanding production capacity by converting more lines as further orders come in.

Going forward, the company also plans to produce and supply LFP cathode materials with further improved cost competitiveness and quality by applying a new process that uses lithium from salt lakes in Argentina, drawing on raw material supply chain cooperation across POSCO group.

POSCO Future M continues to hold discussions with major battery makers and automakers on supplying cathode and anode materials, backed by a diverse product portfolio and by a supply chain and technological capabilities that can navigate global trade regulations. The company is also stepping up the expansion of its production capacity. Its moves include a KRW 1 trillion long-term supply contract for synthetic graphite anode materials, signed with a global automaker in March this year, and plans to invest approximately KRW 357 billion in a new synthetic graphite anode material plant in Vietnam. A plant to process spherical graphite, an intermediate material for natural graphite anode materials, is under construction at the Saemangeum National Industrial Complex in Jeonbuk and is scheduled to begin trial operation in early 2027, with completion and full-scale mass production planned for the second half of the year.

In July, POSCO group announced its future growth strategy, outlining a vision to build a Triple-Core system and become a “national supplier of critical resources.” The system spans industrial resources (steel), strategic resources (such as lithium, cathode and anode materials, and rare earths), and energy resources (LNG and renewable energy).

In line with this strategy, POSCO Future M aims to build on its unrivaled technology to strengthen its business competitiveness and expand its markets, and to emerge as a global leader in the cathode and anode materials business, one of the pillars of the group’s strategic resources.

A view of POSCO Future M’s Pohang cathode material plant, located in Yeongil Bay Industrial Complex 4, Pohang. The company recently completed converting part of its high-nickel cathode material production lines at the Pohang plant to LFP cathode material production, and plans to continue expanding production capacity by converting more lines as customer orders come in.

Builds a next-generation plant incorporating advanced AI and robotics technologies to strengthen its leadership in automotive steel materials

Makes strategic investment in response to the growing demand for premium and larger automotive exterior panels, producing extra-wide products for SUVs and RVs as well as lower-carbon products made with electric arc furnace materials

POSCO (President: LEE Hee Geun) is expanding its production capacity for premium automotive steel sheets to secure a leading position in the future automotive market.

On September 8, POSCO broke ground on its No. 8 Continuous Galvanizing Line (8CGL) at Gwangyang Works. The new line will have an annual production capacity of 450,000 metric tons. Attendees at the groundbreaking ceremony included PARK Seong Hyeon, Mayor of Gwangyang; LEE Hee Geun, President of POSCO; KIM Kwang Moo, Head, Strategic Investment Division; LEE Yoo Kyung, Head, Corporate Procurement Division; KO Jae Yoon, Head, Gwangyang Works; and EOM Kyung Keun, Head, Technical Research Laboratories.

“This is a strategic investment designed to strengthen our future competitiveness amid the rapidly changing global steel landscape,” said LEE Hee Geun, President of POSCO, at the ceremony. “By establishing a POSCO-developed facility specialized in automotive steel sheets—one capable of producing next-generation, high-quality products with enhanced cost and technological competitiveness—we will further reinforce POSCO’s technological leadership in the global market.”

Scheduled for completion in 2028, 8CGL will specialize in producing hot-dip galvanized steel sheets for automotive exterior panels.

Hot-dip galvanized steel sheets are coated with zinc, providing excellent corrosion resistance and a high-quality surface finish. These properties make them suitable for automotive exterior panels and home appliances. As vehicles become increasingly premium, demand continues to grow for hot-dip galvanized steel sheets that offer superior paintability, corrosion resistance and formability for automotive exterior applications.

This marks POSCO’s first investment in a new hot-dip galvanizing facility since 2017. To expand production of next-generation automotive steel sheets in line with the automotive industry’s shift toward more premium and larger vehicles, POSCO will invest approximately KRW 480 billion in 8CGL. Upon completion of the project, POSCO’s annual hot-dip galvanized steel sheet production capacity will increase to 4.95 million metric tons.

Connected to POSCO’s new electric arc furnace (EAF), 8CGL will serve as a key production hub for lower-carbon automotive steel sheets. The line will feature an ultra-high-temperature heat treatment system optimized for EAF-based steel sheets, enabling POSCO to meet growing demand from global automakers for lower-carbon steel. It will also strengthen the company’s production system for extra-wide automotive steel sheets used in the exterior panels of midsize and larger SUVs and recreational vehicles (RVs).

The new line will also enhance productivity and quality competitiveness. POSCO plans to deploy AI technologies built on more than 30 years of operational expertise. These technologies will analyze material, process and quality data in real time and control equipment accordingly, reducing quality variations and defects while improving production efficiency. POSCO will also advance AI transformation (AX) in manufacturing by using AI and robotics for high-risk tasks, such as removing impurities from high-temperature molten zinc and collecting samples.

Leveraging 8CGL, POSCO plans to further elevate its quality and service standards while securing differentiated product competitiveness. By supporting customers’ ability to respond swiftly to market changes and maintain stable production, POSCO aims to help shape the future of the mobility industry as a strategic partner committed to its customers’ success.

Meanwhile, in July, CHANG In Hwa, CEO of POSCO Holdings, announced plans to strengthen the POSCO group’s role as Korea’s leading materials company through a Triple Core strategy centered on industrial, strategic and energy resources. In steel, a core industrial resource, the group plans to reinforce its technology-driven fundamental competitiveness by strengthening market leadership, pursuing Cost Innovation and making a timely transition to low-carbon production.

As part of its strategy to strengthen market leadership, POSCO has designated mobility materials—including Giga Steel and HyperNO, a high-efficiency non-oriented electrical steel used in electric vehicle traction motor cores—among its eight core strategic products. The company also plans to intensively develop Gwangyang Works into a steelworks specializing in next-generation mobility.

▲ On September 8, POSCO broke ground on 8CGL, a hot-dip galvanized automotive steel sheet plant, at Gwangyang Works.

▲ On September 8, POSCO broke ground on 8CGL, a hot-dip galvanized automotive steel sheet plant, at Gwangyang Works.

CHANG: “Critical minerals have the potential to become a new growth pillar for bilateral industrial cooperation”… Calls for stronger supply chains combining Australian resources with Korean technology

Meets with key Australian ministers ahead of the meeting… Seeks support for POSCO group’s steel, lithium and energy projects in Australia

On 2 September, CHANG In Hwa, CEO of POSCO HOLDINGS, attended the 47th AKBC-KABC Annual Joint Meeting in Adelaide, Australia, as the Korean Chair and proposed strengthening resource supply chains by combining Australia’s resources with Korea’s advanced technologies.

Some 200 government and business leaders from both countries attended the meeting, including Australian Minister for Foreign Affairs Penny Wong, Minister for Trade and Tourism Don Farrell, and Martin Ferguson, Chair of the Australia-Korea Business Council (AKBC).

Established in 1979, the Korea-Australia Business Council (KABC) has served as a key platform for advancing economic cooperation between the two countries. Marking the 65th anniversary of diplomatic relations this year, participants agreed to use the occasion as an opportunity to take bilateral cooperation to the next level and expand the council’s role amid rapidly changing global supply chains.

In his opening remarks, CHANG said, “Critical minerals have the potential to become a new growth pillar for industrial cooperation between our two countries,” emphasizing the importance of strengthening supply chains by combining Australia’s abundant resources with Korea’s advanced smelting and processing technologies. He also called for the development of a robust energy ecosystem through greater stability in natural gas supply chains and cooperation in renewable energy, while expanding partnerships into defense, space and R&D so that the two countries can become key partners in future advanced industries.

During the meeting, participants held in-depth discussions on cooperation in three key areas: ▲steel, secondary battery materials and critical minerals ▲innovation and R&D ▲energy transition and decarbonization.

POSCO group shared the key activities of its Australia-based research institute specializing in critical resources, the group’s first overseas research institute dedicated to resources, and emphasized that bilateral cooperation should evolve into a broader technology partnership. POSCO INTERNATIONAL also explained that energy cooperation is moving beyond securing traditional resources toward jointly developing renewable energy businesses.

CHANG also engaged in private resource diplomacy on 1 September, a day before the meeting, holding consecutive meetings with Australian Minister for Industry and Innovation Tim Ayres and Minister for Trade and Tourism Don Farrell. During the meetings, CHANG reiterated the importance of resource cooperation and requested the Australian government’s support and cooperation to ensure the smooth progress of POSCO group’s steel, lithium and energy projects in Australia. He also met with Kathleen Conlon, Chair of Pilbara Minerals, and her delegation to explore ways to further strengthen cooperation in the lithium business.

CHANG’s proposal is part of POSCO group’s Triple-Core strategy. Under the strategy, POSCO group is expanding its business portfolio around three resource pillars: industrial resources such as steel, strategic resources such as lithium, and energy resources. Australia is a key partner, supplying approximately 70% of the group’s raw materials.

POSCO group has maintained wide-ranging cooperation with Australia across steel, secondary battery materials and energy. Beginning with long-term iron ore purchases in 1971, the group has imported more than 1.5 billion tons of raw materials from Australia and participated in the development of the Roy Hill iron ore mine from its early stages in 2010. In the secondary battery materials business, POSCO group operates a lithium hydroxide production plant at the Yulchon Industrial Complex in Jeollanam-do through a joint venture with Pilbara Minerals and acquired a stake in a high-quality lithium mine owned by Mineral Resources this year. In the energy sector, the group acquired Australia’s Senex Energy in 2022 and has continued to expand its natural gas business.

▲CHANG In Hwa, Korean Chair of the Korea-Australia Business Council (KABC) and CEO of POSCO HOLDINGS (left), poses for a commemorative photo with Martin Ferguson, Chair of the Australia-Korea Business Council (AKBC), at the 47th AKBC-KABC Joint Meeting held in Adelaide, Australia, on 2 September.

▲The 47th AKBC-KABC Joint Meeting was held in Adelaide, Australia, on 2 September. From the sixth person from the left in the front row: Penny Wong, Australian Minister for Foreign Affairs; CHANG In Hwa, Korean Chair of the Korea-Australia Business Council (CEO of POSCO HOLDINGS); and Martin Ferguson, Chair of the Australia-Korea Business Council.

A key outcome of public-private cooperation following RIGI approval by the Argentine government and the South Korea–Argentina summit

POSCO group’s resource-focused strategy and lithium supply chain to gain further momentum, supported by POSCO Argentina’s return to profitability in the second quarter

POSCO Holdings has secured a US$700 million (approximately KRW 1 trillion) credit facility from the Inter-American Development Bank Group (IDB Group), an international financial institution, to fund the operations of its Argentina brine lithium business.

On August 4, POSCO Argentina, POSCO Holdings’ Argentine brine lithium production subsidiary, obtained approval from IDB Invest—the private-sector arm of the Inter-American Development Bank Group (IDB Group)—for a short-term credit facility of up to US$700 million.

As part of its strategy to support critical mineral supply chains in Latin America and the Caribbean, the IDB Group provides financing for resource development projects in the region that demonstrate strong performance and competitiveness. In approving the facility for POSCO Argentina’s lithium business, IDB Invest highly recognized the project’s compliance with global ESG standards and its contribution to economic development in Latin America.

The approved facility will allow POSCO Argentina to secure working capital as needed for its first and second brine lithium plants, with the second plant scheduled for completion in the second half of the year. This is expected to further strengthen the subsidiary’s financial stability.

In addition to securing substantial working capital at competitive interest rates, POSCO Argentina is expected to benefit from meaningful tax incentives. Under the intergovernmental agreement establishing the IDB, preferential tax treatment will apply to interest payments and financial transaction taxes incurred in the borrowing process. This is expected to significantly reduce financing costs and enhance the project’s profitability and competitiveness.

POSCO Holdings views the Argentine government’s approval of the Incentive Regime for Large Investments (RIGI), together with IDB Invest’s approval of the large-scale credit facility following the South Korea–Argentina summit held on July 31, as a turning point that has reaffirmed the global competitiveness of its lithium business. The Company also sees this as a leading example of successful public-private cooperation to strengthen critical resource supply chains.

POSCO Holdings’ Argentina lithium business is gaining further momentum through strong financial performance, including POSCO Argentina’s first quarterly profit in the second quarter of 2026; public-private diplomatic efforts with the South Korean government; institutional support from the Argentine government; and access to competitive international financing.

Building on these tangible achievements and competitive strengths, POSCO Holdings will continue to advance POSCO group’s resource-focused “Triple Core” growth strategy. The strategy encompasses industrial resources, including steel; strategic resources, including lithium, cathode and anode materials, rare earth elements and rare gases; and energy resources, including LNG and renewable energy. POSCO Holdings will further strengthen its competitive lithium resource supply chain as a leading supplier of critical resources.

▲ KIM Seung Jun, Head of the Finance & IR Division at POSCO Holdings (right), and James Scriven, CEO of IDB Invest (left), pose for a commemorative photo at the signing ceremony for POSCO Argentina’s credit facility agreement at POSCO Center in Seoul on August 28.

Following projects in China, Mongolia, and New Zealand last year, the company is expanding its efforts to preserve overseas independence movement heritage and promote a culture of honoring national heroes

In partnership with the Ministry of Patriots and Veterans Affairs, POSCO INTERNATIONAL (CEO Lee Kye-In) is expanding its project this year to install PosART panels at overseas historic sites related to the Korean independence movement in countries such as Mexico, the United States, and the Netherlands. Following the installation of 64 panels at historic sites in China, Mongolia, and New Zealand last year, the company plans to install a total of 111 panels in the three countries by March next year, including both new installations and replacements of existing panels.

The project is being carried out as part of the POSCO 1% Foundation’s social contribution project, funded by voluntary donations from its executives and employees. The goal of the project is to preserve the historical value of overseas historic sites related to the Korean independence movement and raise awareness among overseas Koreans and local visitors of the history and significance of the movement.

On National Liberation Day, August 15 (local time), POSCO INTERNATIONAL and the Embassy of the Republic of Korea in Mexico held a reopening ceremony for the Merida Korean National Association Local Hall (now the Museum Commemorating the Immigration of Koreans to Yucatán) in Merida, Mexico. As part of the reopening, the company replaced the building’s entrance sign and information boards with PosART panels and enhanced the museum’s visitor information facilities.

The ceremony was attended by Lee Joo-Il, Ambassador of the Republic of Korea to Mexico; Ko Young-Hak, Head of POSCO INTERNATIONAL Mexico E-Mobility; Kim Yoon-Tae, Head of the Management Support Office at Kia Mexico Corporation; representatives from the Mexico branch of the Cultural Heritage Restoration Foundation; and members of the Korean Descendants Association in Mexico City, who gathered to reflect on the significance of the project.

The Merida Korean National Association Local Hall was used by the Mexico City branch of the Korean National Association in 1942 preserving the history of the Korean community in Mexico and the activities of the Korean National Association. It is now operated as the Korean Immigration History Museum, where visitors can learn about the early history of Korean immigration to Mexico and the Korean independence movement.

Following the project in Mexico, POSCO INTERNATIONAL will replace the entrance sign at the Yi Jun Peace Museum in The Hague, the Netherlands, in September. From the end of this year through March next year, it will also install 107 new panels at the Hung Sa Dahn Headquarters in Los Angeles, the United States, continuing its efforts to preserve overseas historic sites related to the Korean independence movement.

PosART is a high-resolution color steel plate created by applying inkjet printing technology to steel, offering over four times the resolution of conventional printed steel plates for precise designs. Its excellent durability and corrosion resistance allow it to retain its quality over extended periods in a wide range of climatic conditions, making it well suited for signage and information facilities at historical and cultural heritage sites.

“Preserving the overseas heritage of the Korean independence movement and passing on its history to future generations, especially around National Liberation Day, is a social responsibility that companies should also share,” said a POSCO INTERNATIONAL official. “We will continue to contribute to preserving independence movement heritage and promoting a culture of honoring national heroes by working with the Ministry of Patriots and Veterans Affairs and relevant organizations in Korea and abroad.”

Meanwhile, in May, approximately 24,000 executives and employees of POSCO Group across 23 countries participated in Global Volunteer Week, the Group’s flagship social contribution initiative, engaging in volunteer activities tailored to local needs, including improving housing conditions for vulnerable groups, responding to wildfires, and enhancing educational environments. In addition, the POSCO 1% Foundation continues to expand its social contribution initiatives, including a project to provide advanced assistive devices to national veterans, while contributing to stronger ties with local communities and promoting a culture of sharing.

▲ Group photo from the reopening ceremony of the Merida Korean National Association Local Hall (now the Museum Commemorating the Immigration of Koreans to Yucatán) in Mexico. From left in the back row: Ko Young-hak, President of POSCO INTERNATIONAL Mexico E-Mobility; Kim Yun-tae, Vice President of Business Support Group at Kia Mexico; Juan Durán Cong, President of the Korean Descendants Association of Yucatán; and Lee Joo-il, Ambassador of the Republic of Korea to Mexico

▲ PosART information panel installed at the Merida Korean National Association Local Hall (now the Museum Commemorating the Immigration of Koreans to Yucatán) in Mexico

▲ Group photo from the reopening ceremony of the Merida Korean National Association Local Hall (now the Museum Commemorating the Immigration of Koreans to Yucatán) in Mexico. From left in the back row: Ko Young-hak, President of POSCO INTERNATIONAL Mexico E-Mobility; Kim Yun-tae, Vice President of Business Support Group at Kia Mexico; Juan Durán Cong, President of the Korean Descendants Association of Yucatán; and Lee Joo-il, Ambassador of the Republic of Korea to Mexico

▲ PosART information panel installed at the Merida Korean National Association Local Hall (now the Museum Commemorating the Immigration of Koreans to Yucatán) in Mexico

Pohang plant production lines converted from high-nickel to LFP to meet customer demand… prototype certification underway, with mass production supply set to begin by the end of the year

Continuing supply negotiations with global battery makers and automakers based on supply chain and technological capabilities to address trade regulations

POSCO Future M officially launched its LFP cathode material business on the 6th, reaching a large-scale, long-term supply agreement with a major Korean battery maker for lithium iron phosphate (LFP) cathode materials.

The agreement, reached to preemptively address surging North American ESS demand, will see POSCO Future M supply more than 190,000 tons of LFP cathode materials to the battery maker over six years, from next year through 2032. The two companies plan to finalize the terms and sign a formal contract in the third quarter.

Leveraging POSCO group-level collaboration, the company plans to produce and supply LFP cathode materials with enhanced cost competitiveness by applying new processes that use steelmaking by-products, such as iron oxide, and lithium sourced from salt lakes in Argentina.

POSCO Future M is in the final stages of negotiating LFP cathode material supply contracts with other major customers and plans to expand production capacity in line with additional orders.

While LFP batteries have lower power output than ternary batteries such as NCM (nickel-cobalt-manganese) and NCA (nickel-cobalt-aluminum), they offer the advantages of lower cost and longer lifespan. With power demand surging recently due to the expansion of AI data centers, demand for LFP batteries for ESS applications is growing to ensure a stable power supply. LFP battery adoption is also increasing in the electric vehicle market, particularly for entry-level models.

To ensure the timely supply of LFP cathode materials to customers, POSCO Future M recently completed the conversion of portions of its high-nickel cathode material production lines at the Pohang plant into LFP cathode material production lines. The company is currently undergoing prototype certification with customers and plans to begin mass production supply by the end of this year.

The company is also continuing negotiations for cathode and anode material supply with global battery makers and automakers, leveraging its supply chain and technological capabilities to navigate trade regulations across various countries. In March, the company signed a large-scale, long-term supply contract worth approximately 1 trillion won with a global automaker for synthetic graphite anode materials, and is investing approximately 357 billion won to build a new synthetic graphite anode material plant in Vietnam to expand production capacity.

Separately, CNP New Material Technology — a joint venture between POSCO Future M and FINO-CNGR — began construction of an LFP cathode material plant at Pohang’s Yeongil Bay General Industrial Complex 4 in May, targeting mass production in 2027. The plant will expand production capacity in phases to a maximum of 50,000 tons.

▲ Aerial view of POSCO Future M’s Pohang cathode material plant located in Yeongil Bay Industrial Complex 4, Pohang. POSCO Future M is currently undergoing customer certification for prototypes after converting portions of its ternary high-nickel cathode material production lines in Pohang to LFP production lines.

Becomes the first in Asia to demonstrate compliance with a global standard in the aerospace rare gas manufacturing market.

Begins full-scale supply of high-purity xenon and krypton, expanding beyond semiconductors to lead the localization of aerospace materials and bolster the group’s strategic resources portfolio.

SEOUL, South Korea, August 6, 2026—POSCO AIR SOLUTION, POSCO group’s industrial gas affiliate, has become the first company in Asia to receive the internationally recognized AS9100D aerospace and defense quality management system certification from LRQA for the production of high-purity rare gases.

On August 6, POSCO AIR SOLUTION held a certification ceremony for the AS9100D at the POSCO Center in Seoul, attended by Kim Dae-Yeon, President of POSCO AIR SOLUTION, and Lee Il-Hyung, Representative Director of LRQA Korea.

The AS9100D certification is a global standard based on ISO 9001 that incorporates the stringent, sector-specific requirements of the aerospace and defense industries. Given the nature of these sectors — where even the slightest quality deviation can lead to critical consequences — the certification requires an advanced quality assurance system covering product safety, process consistency, full traceability, and risk management. As such, it is regarded as an essential gateway for entering the rare gas manufacturing market for aerospace and defense applications.

POSCO AIR SOLUTION’s achievement is particularly significant not only because it is the first of its kind in Asia’s rare gas manufacturing sector, but also because it marks the successful localization of rare gas production for the aerospace industry. Through this certification, the company plans to expand its business beyond its existing focus on semiconductors and displays, establishing a stable supply base for high-purity xenon and krypton, which are essential for launch propulsion systems. In doing so, POSCO AIR SOLUTION aims to further strengthen its unique position as a specialized producer of rare gas resources for future industries.

In June, POSCO AIR SOLUTION completed the construction of a high-purity rare gas production plant with an annual capacity of 130,000 normal cubic meters (Nm³)* at the Donghoan site of Gwangyang Steelworks. With this facility, the company became the first in Korea to establish a complete value chain covering everything from raw material procurement to product manufacturing for four types of rare gases, securing a stable mass production system. More recently, in electric thruster propellant technology development tests for satellites and space exploration vehicles conducted by the Korea Aerospace Research Institute (KARI), the company’s xenon (Xe) and krypton (Kr) gases demonstrated performance equivalent to imported products, proving globally competitive quality suitable for aerospace applications.

* Normal cubic meter (Nm³) is a unit used to measure flow and volume. “N” stands for “Normal,” referring to standard conditions (typically 0°C and 1 atmosphere), and “m³” refers to cubic meters.

KIM Dae Yeon, President of POSCO AIR SOLUTION, stated, “This AS9100D certification proves that our high-purity rare gas manufacturing capabilities and quality management system are at a world-class level. Based on the high quality standards required by global customers, we will establish ourselves as a trusted key supplier in the aerospace and defense rare gas market.” He added, “By ensuring the stable supply of high-quality rare gases, we will serve as a core pillar of POSCO group’s strategic resources portfolio.”

LEE Il Hyung, Representative Director of LRQA Korea, noted during the ceremony, “POSCO AIR SOLUTION’s achievement in meeting these rigorous international standards for rare gas quality is particularly meaningful as it marks a first in Asia. We expect the company to play a vital role in the future development of the global aerospace industry.”

In July, POSCO group announced its vision to become a leading supplier of key national resources by reshaping its business portfolio and establishing a “Triple Core” system encompassing industrial resources (steel), strategic resources (including lithium, rare earths, and rare gases), and energy resources (such as LNG). In particular, the group plans to foster rare and specialty gases—essential materials for the semiconductor and aerospace industries—as strategic resources, creating new growth engines and helping stabilize supply chains for the nation’s future industries.

▲ KIM Dae Yeon, President of POSCO AIR SOLUTION (left), and LEE Il Hyung, Representative Director of LRQA Korea, pose for a commemorative photograph during a certificate presentation ceremony for the aerospace and defense quality management system held at POSCO Center on August 6.