Global protectionism and armed conflicts have intensified geopolitical risks, amidst which resource dominance and energy supply chains are fast becoming essential projects directly linked to national security. In this shifting global dynamics, POSCO group seeks to enhance its competitive profile by building supply chains across steel, materials, and resources and extending its reach to include lithium, LNG, and rare gases. In a recent interview with 3PRO TV, Dr. CHANG In Hwa, CEO of POSCO HOLDINGS, shares his insights on the missions and strategy of the business group in an age that augurs massive realignment of the global supply network.

PART 01

CHANG In Hwa The two most significant shifts that occurred during the past five years are AI Transformation (AX), driven by the uptake of AI, and the Green Transformation (GX)*. These developments are likely to continue in the years ahead. In addition, the fragmentation of global supply chains has emerged as a key global issue, which was aptly discussed during the World Economic Forum (WEF) in Davos. This is not a challenge faced by Korea alone, but a global phenomenon that has been aggravated by the Russia-Ukraine war and the US-Iran conflict. When supply chains that deliver resources and materials are disrupted, all industries may suffer the impact. Ultimately, how we respond to supply chain fragmentation will shape the future of national economies, the global economy, and the survival of private businesses.

*Green Transformation (GX): A strategy to reform economic and social systems to become more environmentally sustainable, to reduce greenhouse gas emissions and address the climate crisis.

▲ CHANG In Hwa, CEO of POSCO HOLDINGS, presents the group’s business portfolio strategy at the ‘CEO Investor Day’ event organized on July 2.

CHANG In Hwa As a business group, POSCO values not only the growth of its own operations, but also the impact we project onto other economic activities. What was presented at Investor Day is the new direction to be sought by POSCO group. Previously, we served other domestic industries by supplying steel; going forward, we wish to offer a wider variety of materials that will serve future industries, such as AI and robotics. To that end, we seek to stretch the scope of our business portfolio to include Strategic Resources, represented by lithium, as well as Energy Resources. My vision for POSCO group is to sustain our heritage as the backbone of national industrialization by continuing to serve as a vital base that supports the Korean society.

CHANG In Hwa “Guardian” appropriately captures the role that POSCO group seeks to fulfill. The very first batch of molten iron was produced at POSCO using iron ore acquired through a long-term supply agreement signed with Hamersley, an Australian mining company. Additionally, by binding a 20-year agreement, we have secured reliable LNG supply from Indonesia’s Tangguh region, helping to strengthens our competence. In Korea, we don’t simply import energy and mineral resources; we take extra steps to add value to these commodities. Hence, we make additional investment and process them into value-added products. This is where POSCO group outshines its peers with unrivaled capabilities. Because these operations require massive CAPEX, every decision must be backed by technologies proven through strong R&D skills. It is my firm belief that POSCO group is the de facto No. 1 company among Korea’s process industries.

CHANG In Hwa We were the first among Korean companies to sign a contract with Tangguh LNG. We have our own LNG infrastructure, including storage tanks and port facilities. To deliver on our business diversification strategy, we acquired energy companies—Daewoo International and Hanwha Energy.

In the interest of reliable energy supply, LNG needs to be given greater consideration. In the past, LNG had only a handful of users, namely Taiwan and Japan. But the Russia-Ukraine war unveiled that PNG, albeit inexpensive, does not offer the best energy solution. The world is now beginning to feel the need shift to LNG-based natural gas supply.

Our business consumes LNG, but we do more. We also transport, spot trade and invest in midstream operations with the goal to assist in making LNG dependable and reliable in Korea. Additionally, LNG turns into power very quickly. With soaring power demand triggered by advances in the AI industry, LNG offers the ideal solution to compensate for the limitations of nuclear, coal-fired and renewable energy sources.

Australia is a living example. Given the abundance of wind and solar resources, Australia initially aimed to shift to a renewable energy-based power system. But they had to change their mind. Due to the intermittency issue, additional investments became inevitable. Ultimately, they chose to use LNG as an interim “bridge” energy source. This example illustrates the vital role of LNG in national energy policies and to balance the energy mix.

PART 02

CHANG In Hwa“Irreplaceable” has deep resonance; I like what it implies. Materials draw the boundaries and limitations of what industries and economies can and cannot do. For example, once steel became widely available in the aftermath of the Industrial Revolution, the trajectory of industrial development was transformed. Likewise, in the rechargeable battery industry, lithium is the key material that determines the cadence of growth. Lithium is lightweight and allows electrons to transit quickly, making it the ideal battery material. That is why lithium occasionally breeds resource nationalism.

In line with these dynamics, POSCO group is extending its reach even farther than lithium to include rare earths and rare gases. Rare earths is particularly important. China has previously weaponized it  and countries reacted to the risk by building strategic stockpiles. We are moving beyond global resource risk mitigation; we are building a complete business value chain that begins from resource acquisition and extends into separation, purification and finished product manufacturing.

Let’s not leave out rare gases. Xenon, krypton, helium, and neon are indispensable gases for the semiconductor industry. Xenon is particularly crucial to the etching process applied to stacked devices, such as HBM. Along with krypton, xenon is vital to semiconductor manufacturing. Should their supply be disrupted, the entire industry can be exposed to significant risk.

POSCO operates oxygen plants as part of the Steel Works facility. POSCO Air Solution operates a plant to perform separation and purification to produce rare gases. Through this process, we can cover approximately 50% of current domestic rare gases demand. Furthermore, xenon is used in the aerospace industry. Due to its high atomic mass and ionization efficiency, the gas is deemed ideal for manufacturing space propellants, such as satellites and rockets. Its strategic value is expected to grow.

PART 03

CHANG In Hwa I joined POSCO group through RIST. When I made my first visit to the steelworks, I was struck by the slogan displayed at the main gate: “Resources are limited, creativity is unlimited.” The phrase left a lasting impression on me. I immediately recognized the monumental importance of creativity and technology at POSCO.

*RIST (Research Institute of Industrial Science & Technology): POSCO group’s specialized applied research institute, established in 1987.

To expand into the global market, we focused on developing automotive steel, which consist of products that require the most advanced technologies. It took about five years to enter the markets. Today, we supply to key global OEMs, including Toyota, GM, and Mercedes-Benz. I should note that each automaker requires their own specifications. How are we able to meet the widely varying needs? That is precisely where we have been able to prove our technological worth as well as our ability to design and control the manufacturing process. What distinguished us as Global No. 1 is none other than our technology.

PART 04

CHANG In Hwa In the process industry, AI is a vital component that consolidates accumulated knowhow and unspoken knowledge* to fine-tune operations for the desired outcome. As a business group, POSCO has been integrating AI for 10 years; we have encoded implicit data into AI and we have come a long way. Unlike assembly industries, steelmaking handles molten metal in motion and various other materials that pose additional risks to implementation of Physical AI. Despite these challenges, I am confident we can prevail against our Chinese peers.

*Unspoken knowledge, a.k.a., tacit knowledge: Knowledge accumulated through personal exposure, experience and learning that is difficult to articulate explicitly through spoken words or in writing.

When I applied for the CEO position, I laid bare my vision. I expressed my desire to see POSCO group as an OEM company that demonstrates world-class operational excellence and one that globally develops, produces, and markets products under the POSCO brand. At the center of this vision is AI. History witnessed manufacturing hubs transition from Japan to Korea and then to China. However, but all the profits went to Europe, from where technology originated. However, AI can change this dynamic. Language barrier will vanish and software will enable rapid installation, operation, and optimization. Once AI is deployed, manufacturers will quickly evolve into a software company and even a business operator. AI is the heart of this transformation.

CHANG In Hwa During my tenure as CTO, POSCO was named a Lighthouse Factory by the WEF. It was in the early phase of the program, having named fewer than ten Lighthouse factories worldwide. POSCO made the early list recognized for its AI-driven innovation.

*Lighthouse Factory: A factory recognized by the World Economic Forum for leading innovation in global manufacturing through the adoption of key Industry 4.0 technologies. In 2019, POSCO was the first company in Korea to be named a Lighthouse Factory.

PART 05

CHANG In Hwa When our founder established POSTECH, he created the “Nobel Garden,” a patch of land designated for Nobel prize winners. Pedestals were built to celebrate future Korean laureates. However, Korea has yet to produce a Nobel prize winner in science and technology. I believe that through close cooperation among POSTECH, RIST, POSCO, and the industry, we will produce one. Japan has also produced Nobel laureates through strong industry-academia collaboration. With this vision, POSCO and RIST are working with promising researchers, whose work has appeared in Nature*, to advance science and future technologies. An example is the metalens**, on which both POSCO and RIST are working to take to industrial-scale production. I hope to put my support behind these efforts to the best of my ability.

*Nature: A prestigious multidisciplinary scientific journal recognized as the world’s top three scientific journals (along with Science and Cell).
**Metalens: Next-generation ultra-thin lens that controls how light is focused by arranging subwavelength nanostructures on a flat surface.

CHANG In Hwa Resources and materials are sectors that require long-term persistence and sustained commitment, making them particularly appropriate sectors for companies like POSCO that have a long history of accumulated expertise. Ten years from now, my vision for POSCO group is to be in the vanguard of global supply chains. To get there, we will have to expand our scope of operation beyond industrial resources to include strategic and energy resources.

CHANG In Hwa It is deeply meaningful to see Samsung Electronics and SK Hynix in the spotlight. They deserve to be celebrated. While few may remember, the very first ‘peoples’ stock’ in Korea was the POSCO stock. We were the first company to offer the opportunity to participate in raising capital for a public company to ordinary citizens. This was to make good on our commitment to share with the people our achievements as a state-owned enterprise. We take our history and legacy very seriously. With that solemn sense of responsibility, POSCO group will work even harder to remain a company worthy of national pride.

▼Watch 3PRO TV’s Special Interview with CHANG In Hwa, CEO of POSCO HOLDINGS

With proven profitability and growth potential in the lithium sector, proactive investments will propel POSCO into a Global Top 5 lithium company by 2033.

For the steel sector, growth investments in promising overseas markets will begin in earnest, with returns reinvested into the domestic low-carbon transition.

The energy sector will contribute to national energy security by expanding LNG trading and entering the renewable energy market.

To resolve the holding company discount, the ownership stakes in listed operating subsidiaries will be optimized.

POSCO group announced a new future growth strategy aimed at restructuring its business portfolio around resources, extending beyond steel to include lithium and energy, thereby contributing to national industrial security and strengthening the supply chain.

On July 2, POSCO group hosted its ‘CEO Investor Day’, where it unveiled its vision to become a ‘Representative Supplier of Core Resources for the Nation’ by establishing a ‘Triple-core’ framework encompassing Industrial Resources (Steel), Strategic Resources (Lithium, Cathode and Anode Materials, Rare Earths, etc.), and Energy Resources (LNG, Renewable Energy).

Standing before investors, CHANG In Hwa, CEO of POSCO HOLDINGS, emphasized, “At a time when external uncertainties are intensifying due to supply chain instability and the acceleration of the low-carbon transition, we must seize this moment to create new growth opportunities through bold innovations in our business portfolio.” He added, “By expanding our business domain from steel and materials into resources, we will lead the way in strengthening national industrial security and supply chains.” He also presented concrete targets of achieving consolidated revenue of KRW 187 trillion and operating profit of KRW 13.1 trillion by 2035.

Strategic resources, led by lithium, received the most attention. Investor interest was highly concentrated as the lithium business demonstrated tangible results and its growth potential became evident.

POSCO group unveiled a blueprint to establish an annual lithium production capacity of 173,000 tons by 2033, positioning itself as a Global Top 5 lithium company, while targeting operating profit of more than KRW 1.8 trillion from the lithium business by 2035..

Specifically, in the brine lithium business, POSCO Argentina turned profitable last March and recently secured approval under the Argentine government’s Incentive Regime for Large Investments (RIGI), which is expected to further strengthen its profitability. With the goal of achieving an annual brine lithium production capacity of 100,000 tons by 2033, the company will also accelerate Phase 3 and Phase 4 investments.

In the ore lithium business, a joint venture agreement with Australia’s Mineral Resources Limited has laid the foundation for expanding the refining business, securing more than 187,000 tons of lithium concentrate annually. This is also expected to generate stable annual revenue of approximately KRW 200 billion.

POSCO group also plans to foster rare earths, key minerals for the electric vehicle and robotics industries, as well as rare and specialty gases essential for advanced industries, as strategic resources. These businesses will serve as new growth engines while helping stabilize supply chains for the nation’s future industries. In the steel business, representing its Industrial Resources segment, the group will accelerate overseas growth investments to overcome stagnant domestic demand. By 2031, it plans to expand production capacity to 10 million tons in high-growth, high-profitability markets such as India, the United States, and Indonesia. Profits generated from these investments will be reinvested in Korea’s low-carbon transition, creating a virtuous cycle.

The energy resources business, now established as one of the group’s core businesses, will focus on securing both profitability and sustainability. In LNG, POSCO group will steadily execute expansion strategies across the value chain while expanding trading volumes in response to the recent increase in global cargo movements. In renewable energy, the group will actively enter Korea’s offshore wind market and overseas solar power markets, contributing to national energy security.

In the new business sector, POSCO group will promote the commercialization of Physical AI for process industries by leveraging its extensive on-site data and expertise in facility automation and intelligent operations accumulated through its steel business.

To accelerate the execution of this business portfolio transformation, POSCO group plans to invest KRW 16.7 trillion in future growth initiatives over the next three years (2026–2028).

Meanwhile, POSCO HOLDINGS plans to optimize its ownership stakes in listed subsidiaries to around 50% in order to address the persistent holding company discount in the market. The capital secured through this initiative will be invested primarily in strategic resource projects directly managed by POSCO HOLDINGS to support the group’s future growth. In addition, an amount equivalent to 10% of the proceeds from these transactions will be used for share buybacks and cancellations to maximize shareholder value.

Following the event in Korea, POSCO group will continue to enhance corporate value and strengthen investor communication by hosting consecutive CEO Investor Days in Singapore on July 6 and Hong Kong on July 8.

▲ CHANG In Hwa, CEO of POSCO HOLDINGS, personally presents the group’s business portfolio strategy at the ‘CEO Investor Day’ held on July 2.

▲ CHANG In Hwa, CEO of POSCO HOLDINGS, personally presents the group’s business portfolio strategy at the ‘CEO Investor Day’ held on July 2.

▲ CHANG In Hwa, CEO of POSCO HOLDINGS, personally presents the group’s business portfolio strategy at the ‘CEO Investor Day’ held on July 2.

Invested USD 40 million to acquire a larger stake in the Mahenge graphite mine in Tanzania

Signed a global sales rights agreement for industrial graphite for steel and cement to expand its business

Raised expectations for POSCO Group’s ‘completion of full value chain for secondary battery materials’

POSCO INTERNATIONAL is working diligently to complete the ‘construction of full value chain for secondary battery materials.’

On the 3rd, during the ‘45th Korea-Australia Economic Cooperation Committee Joint Meeting’ held at Crown Towers Perth in Australia, POSCO INTERNATIONAL (CEO Lee Kye-In) signed an investment agreement worth USD 40 million with the Australian mining company Black Rock Mining.

The signing ceremony was attended by Jeong In-Kyo, Trade Minister of the Ministry of Trade, Industry and Energy; Madeleine King, Australian Federal Resources Minister; Chang In-Hwa, POSCO Group Chairman; Lee Kye-In, POSCO INTERNATIONAL CEO; and Kim Jun-Hyung, head of POSCO Holdings’ secondary battery materials department.

Since Chang In-Hwa took over as chairman in March, POSCO Group has proactively developed strategies to build a ‘full value chain for secondary batteries,’ and is also adapting flexibly to market changes, aligning with the global trend of establishing a domestic secondary battery industry network.

Taking advantage of the chasm (temporary downturn in demand) in the electric vehicle (EV) market, the company is actively securing promising assets, such as lithium salt deposits and mines, while expanding its presence in the secondary battery materials sector, which is essential for a sustainable and eco-friendly future, thereby enhancing the overall value and sustainability of the group.

Thanks to the investment agreement made by POSCO INTERNATIONAL, POSCO Group has acquired a 19.9% stake in Black Rock Mining, the owner of the Mahenge mine in Tanzania. This move will secure early access to graphite from the mine and establish a robust supply chain while expanding its graphite business through global sales rights agreement for industrial graphite.

Black Rock Mining’s graphite reserves are estimated at around 6 million tons, making it the second-largest in the world. Last year, POSCO INTERNATIONAL already completed the first phase of development in collaboration with Black Rock Mining. Once first-phase production begins, the company expects to receive a total of 750,000 tons of graphite over 25 years, averaging 30,000 tons per year.

With the recent completion of the second-phase contract, the company will secure an additional 30,000 tons of graphite annually for up to 25 years. POSCO Group anticipates that this will enable them to produce anode materials (POSCO FUTURE M) that comply with the United States’ Inflation Reduction Act (IRA) and the European Union’s Critical Raw Materials Act (CRMA), while enhancing the global competitiveness of the domestic eco-friendly vehicle supply chain.

The company is also expected to expand its graphite business scope following the signing of a global sales rights agreement for industrial graphite, which is used in steel, cement, and auto parts. The industrial graphite produced from this mine is projected to meet the domestic demand in Korea, thereby significantly enhancing the country’s mineral resource security.

“We will continue to identify projects that enhance the global competitiveness of key national industries, such as steel and secondary battery materials,” POSCO Group Chairman Chang In-Hwa stated. “Additionally, we will actively utilize the group’s diverse industrial portfolio and global network to establish supply chains that also contribute to national security.”

Black Rock Mining plans to raise capital through this investment and begin construction on mine development within this year, aiming to commence full-scale commercial production by 2026.