Consolidated revenue of KRW 3.6999 trillion with operating profit of KRW 700 million
Revenue and profitability declined due to cathode material price decreases and reduced anode material sales; high-nickel cathode materials’ share of sales expanded
Company declares an emergency management system in preparation for post-chasm growth; CEO Eom Gi-chen stresses a “thorough investment review focused on profitability and strengthening innovative manufacturing competitiveness”
Strengthening R&D for mid-range cathode materials, including high-voltage Mid-Ni, LMR, LMFP, and high-value-added anode materials such as low-expansion natural graphite and Si-C
Accelerating development of next-generation battery materials… targeting 2028 mass production of cathode materials for solid-state batteries, dry electrode cathode materials, and lithium metal anodes
POSCO Future M has announced its 2024 consolidated financial results, reporting revenue of KRW 3.6999 trillion and an operating profit of KRW 700 million. Revenue decreased by 22.3%, while operating profit declined by 98.0% compared to the previous year.
The battery materials business recorded revenue of KRW 2.3399 trillion, with an operating loss of KRW 36.9 billion.
In the cathode materials business, sales volume increased slightly year-over-year, primarily in high-value-added, high-nickel products, driven by growing global electric vehicle sales and the launch of supply for new EV models. However, revenue decreased by 30.4% to KRW 2.1856 trillion due to significant price declines in key raw materials such as lithium and nickel. Profitability also reduced due to KRW 43.6 billion in inventory valuation losses on certain products and raw materials.
The anode materials business saw a decline in natural graphite anode sales volume due to competition from low-cost Chinese products, while sales prices fell in line with dropping graphite raw material costs. The artificial graphite anode segment also recorded inventory valuation losses due to high initial manufacturing costs, resulting in a 30.4% year-over-year revenue decrease to KRW 154.3 billion and a shift to an operating loss.
The basic materials business recorded revenue of KRW 1.3600 trillion and an operating profit of KRW 37.6 billion. While the refractories segment saw increased profits due to greater converter repairs, the chemicals and lime segments experienced reduced profitability due to higher fixed costs.
POSCO Future M recorded a net loss of KRW 231.3 billion after recognizing impairment losses to proactively reflect business conditions and enhance asset soundness.
Meanwhile, POSCO Future M is implementing an emergency management system to prepare for post-chasm growth.
With market demand contracting and global policy uncertainties at unprecedented levels, including the inauguration of a new administration in the key U.S. market, POSCO Future M plans to secure business competitiveness and prepare for future growth through a proactive crisis response.
CEO Eom Gi-chen shared the emergency management plan with all executives following last month’s management meeting on the 17th, strengthening their commitment to enhancing manufacturing and business competitiveness and overcome the crisis. During the meeting, CEO Eom emphasized, “Focus on strengthening manufacturing competitiveness and securing innovative operational capabilities, continue reviewing investment projects to prepare for the company’s future while boldly adjusting non-core assets, and thoroughly examine key management agenda items from a profitability perspective.”
Additionally, POSCO Future M plans to diversify its product portfolio through manufacturing innovation and strengthened R&D. Beyond premium high-nickel cathode materials, the company aims to expand its global market presence through the development of mid-range new products such as high-voltage Mid-Ni, LMR, and LMFP cathode materials, as well as high-value-added products like low-expansion natural graphite anodes and high-capacity silicon-carbon composite (Si-C) anodes.
POSCO Future M is also actively developing next-generation battery materials in collaboration with POSCO Holdings POSCO N.EX.T Hub, Research Institute of Industrial Science & Technology (RIST), and POSTECH. The company is proactively responding to customer demands by developing materials for future battery technologies, including cathode materials for solid-state batteries—considered a game-changer for the future battery industry—as well as dry electrode cathode materials and lithium metal anodes. The company is conducting tests with over three domestic and international customers, targeting mass production by 2028 for solid-state battery cathode materials. Meanwhile, dry electrode cathode materials and lithium metal anodes are also undergoing customer testing in preparation for 2028 mass production.