POSCO Holdings held a board meeting on May 13 and approved KRW 922.6 billion capital increase in three rechargeable battery material subsidiaries, including POSCO Future M
Aiming to strengthen future competitiveness of the rechargeable battery material business and prepare for growth after crossing the chasm — backing production expansion and financial stability of subsidiaries
Chairman In-hwa Chang personally inspected the global rechargeable battery material production site Ultium CAM in Canada — expressing expectations for its operational readiness to serve as a bridgehead for the North American market
POSCO Holdings has decided to invest a total of KRW 922.6 billion in a capital increase for its rechargeable battery material subsidiaries to strengthen their competitiveness and reinforce responsible management over the group’s core businesses.
On May 13, POSCO Holdings convened a board meeting and approved participation in capital increases by its rechargeable battery material subsidiaries: POSCO Future M, POSCO Pilbara Lithium Solution, and POSCO GS Eco Materials, with investments of KRW 525.6 billion, KRW 328 billion, and KRW 69 billion, respectively.
In preparation for full-scale market growth after the EV market chasm, POSCO Holdings aims to finalize major investment projects throughout its subsidiaries, secure future competitiveness in the rechargeable battery material sector with improved financial structures, and strengthen the responsible management of its core businesses by participating in these capital increases.
POSCO Holdings will invest KRW 525.6 billion in POSCO Future M’s capital increase and acquire 100% of the new shares allocated in proportion to its 59.7% stake. On the morning of May 13, POSCO Future M held a board meeting ahead of POSCO Holdings and approved a shareholder-allotted capital increase worth KRW 1.1 trillion to secure future growth drivers.
POSCO Future M intends to use the proceeds from the capital increase to complete ongoing investments to expand production capacity for anode and cathode materials, including a joint cathode material plant in Canada and the expansion of cathode material plants in Pohang and Gwangyang. These efforts are designed to increase the company’s manufacturing competitiveness in rechargeable battery materials.
POSCO Holdings is also injecting capital into POSCO Pilbara Lithium Solution and POSCO GS Eco Materials to establish a foundation for sustainable growth in the lithium and recycling businesses. With this capital increase, the company expects to improve the financial structure of the subsidiaries and support their stable operations.
POSCO Pilbara Lithium Solution is a joint venture between POSCO Holdings and Pilbara Minerals, with ownership stakes of 82% and 18%, respectively. The company imports lithium ore from Australia and produces lithium hydroxide in Korea for use in rechargeable battery materials.
POSCO GS Eco Materials is the holding company of POSCO HY Clean Metal, a rechargeable battery recycling firm. POSCO Holdings and GS Energy hold 51% and 49% ownership stakes, respectively.
Before this decision, POSCO Group Chairman In-hwa Chang personally visited the construction site of Ultium CAM, a joint cathode material production venture between POSCO Future M and GM in Quebec, Canada, on April 29 (local time), to review the status of the company’s global rechargeable battery material business firsthand.
Chairman Chang conducted a thorough on-site inspection, reviewing progress in all areas including production, maintenance, and quality, as well as the living conditions of local employees. He said, “Please ensure strict management of the construction schedule and full operational readiness amid rapidly changing global dynamics,” and added, “We expect this facility to serve as a foothold for entering the North American market just as the rechargeable battery material industry begins to rebound.” He particularly emphasized efficient operations across construction, raw material sourcing, and logistics through glocalization, and highlighted the use of AI to drive innovation in productivity.
Since the appointment of Chairman Chang, POSCO Group has restructured its business portfolio around the “2 Core + New Engine” strategy, focusing the group’s resources and capabilities on steel, rechargeable battery materials, and new businesses. In the rechargeable battery materials business, POSCO plans to use the EV market chasm as a strategic opportunity to enhance competitiveness by achieving early stabilization of new production facilities at home and abroad and expanding product certifications from customers to secure a stable revenue base. In parallel, POSCO is also focusing its efforts on securing high-quality resources, including lithium brine reserves in North and South America and lithium ore mines in Australia.
▲POSCO Group Chairman In-hwa Chang inspects the site of Ultium CAM, a joint cathode material production venture between POSCO Future M and GM in Canada, on April 29 (local time).