Comprehensive review of cooperation with local steelmakers, stable material supply for Korean companies operating locally, and global expansion strategies for energy business

Chairman In-hwa Chang will preside over the Southeast Asia regional strategy meeting in Singapore on the 25th to review the complete localization execution strategies for the steel business.

This meeting was convened to strengthen regional business competitiveness and accelerate overseas growth strategies by establishing a complete localization operational system for overseas steel subsidiaries, amid growing uncertainties in the external business environment such as intensified global protectionism and slowing demand.

Chairman Chang, together with heads of key subsidiaries in the region, will review this year’s business plans and safety management policies, and focus discussions on the direction and execution tasks for advancing the supply chain of overseas subsidiaries.

In particular, the meeting will concretize execution plans for overseas growth strategies encompassing both steel and energy businesses, including:

• Expanding cooperation with local steelmakers in the region
• Establishing a stable material supply system for Korean companies operating locally
• Creating synergies between subsidiaries
• Expanding regional logistics hubs and improving operational efficiency
• Reviewing key issues of the Singapore LNG trading subsidiary established last year

Southeast Asia is a strategic market with high growth potential in downstream industries such as automobiles, home appliances, and construction. POSCO Group plans to systematically promote tailored growth strategies for each region by building a complete localization supply chain system based on its global business network.

POSCO Group has established production, processing, and distribution systems in the Southeast Asia region centered on key local subsidiaries, including PT. Krakatau POSCO in Indonesia, POSCO Yamato Vina, POSCO-Vietnam, POSCO-VST in Vietnam, POSCO-TCS and POSCO-Thainox in Thailand, and POSCO-Malaysia in Malaysia. Based on this, the Group is pursuing customer-focused sales strategies and expanding high value-added products, while continuously strengthening integrated regional competitiveness from raw material procurement to steel production and sales.

Meanwhile, Chairman Chang emphasized at the first group management meeting of the year in January, “We must materialize the fruits of future growth investments based on execution capabilities in times of crisis.” The Southeast Asia regional strategy meeting is part of efforts to further enhance the execution of overseas growth strategies in line with this management policy.

Chairman In-hwa Chang: “I extend my deepest gratitude to all POSCO Group employees who made today’s honor possible··· We will leap forward as a global premier materials company through bold challenges and innovation”

Discusses manufacturing AI transformation and solutions to global economic fragmentation with opinion leaders, experts, and scholars at the Korea Society roundtable, exploring Korea-U.S. cooperation opportunities

POSCO Group announced its strategy for strengthening global leadership in New York, exploring manufacturing solutions through cooperation between Korea and the U.S. in the AI and energy sectors.

Chairman In-hwa Chang participated in the Global Steel Dynamics Forum hosted by World Steel Dynamics (WSD, a global steel industry analysis organization) in New York on June 18 (local time), introducing POSCO Group’s strategy for advancing as a premier future materials company.

The event was attended by steel industry leaders and approximately 500 industry stakeholders, including David Burritt, CEO of U.S. Steel, Lourenco Goncalves, Chairman of Cleveland Cliffs, and TV Narendran, CEO of Tata Steel.

The forum was made particularly meaningful with a ceremony inducting POSCO Holdings as the first global steel group to be permanently enshrined in the WSD Hall of Fame.

▲POSCO Group Chairman In-hwa Chang (left) poses for a commemorative photo after receiving a specially crafted WSD Hall of Fame plaque in the form of a baseball jersey from WSD CEO Philipp Englin at the WSD Forum held in New York on June 18 (local time).

POSCO Holdings has been ranked first for 15 consecutive years since 2010 in WSD’s “World’s Most Competitive Steel Company” evaluation, which has assessed 35 steel companies worldwide since 2002 across 23 criteria, including technological innovation, production scale, cost reduction, processing costs, financial soundness, customer accessibility, and raw material procurement. The company was inducted into the Hall of Fame in recognition of this honor and superior competitiveness.

Chairman Chang expressed his sentiments, saying, “The 15 years of maintaining first place in overall competitiveness is by no means a short period, and I am deeply grateful for the valuable sweat and dedication of all POSCO employees.” He also conveyed his appreciation, noting that “the Hall of Fame induction represents encouragement and support from the global steel industry.”

He emphasized that this induction marks the beginning of a new chapter for the POSCO Group, which will continue its relentless efforts to enhance competitiveness through the realization of intelligent factories via AI and the development of hydrogen-based steelmaking technology, becoming a POSCO that grows responsibly through a bold and challenging spirit and continuous innovation.

Prior to the forum, Chairman In-hwa Chang participated in a roundtable organized by The Korea Society, an organization established to promote mutual understanding and cooperation between Korea and the United States, on June 17 to explore Korea-U.S. cooperation strategies centered on group businesses.

The roundtable was attended by experts and scholars from both countries in the fields of AI, geopolitics, and energy, including Korea Society Chairwoman Kathleen Stephens, President Thomas Byrne, University of Maryland Chair Professor Jay Lee, and American Energy Alliance President Mark Menezes.

The session featured in-depth discussions on Korea-U.S. cooperation opportunities in the steel, secondary battery materials, and energy sectors amid geopolitical uncertainties, including global economic fragmentation.

Additionally, practical solutions were explored to address challenges facing manufacturing during the AI transformation era, including the utilization of the “Industrial Large Knowledge Model (ILKM)” that enhances reliability by integrating expert process knowledge and data from various fields into AI, as well as robot automation solutions for high-risk, non-standard manufacturing environments.

In April, Chairman In-hwa Chang attended the World Steel Association Executive Committee meeting in Australia, inspected the Senex Energy gas field project site in Australia, and visited the construction site of Ultium CAM, a cathode material production subsidiary located in Canada, to personally oversee global secondary battery materials business operations. In May, he participated in the opening ceremony of Australia’s Core Resources Research Institute, the first overseas resource-specialized research institute established by a Korean company, continuing his global management activities centered on steel and secondary battery materials businesses.

Chairman Chang: “Global collaboration must be expanded for low-carbon steel production process development and carbon reduction”

Visited the onshore gas field group company, Senex Energy… Inspected the global energy value chain business, including natural gas development

POSCO Group Chairman In-hwa Chang embarked on a three-day global management tour to Australia starting April 7 to strengthen steel business competitiveness and energy value chains.

Chairman Chang attended the World Steel Association’s first-half regular meeting in Sydney, Australia, and met with global steel company representatives to discuss international steel business issues, including the integrated steel mill in India and technological development cooperation plans. He then moved to Senex Energy’s gas field in Queensland to inspect the natural gas upstream business site.

At the World Steel Association Executive Committee meeting held on April 7, Chairman Chang represented the Korean steel industry in discussions about major issues facing the global steel industry, including carbon reduction. He suggested development directions for key agenda items of this executive committee meeting, including △ environmental improvement effects of low-carbon processes and △ global standardization of carbon emission measurement criteria.

The World Steel Association is a global organization established with the goal of mutual understanding and development in the steel industry, with a total of 157 member companies, including steel companies worldwide, regional steel associations, and research institutes.

That day, Chairman Chang emphasized the need to expand global cooperation at the association level in the field of low-carbon processes, stating, “As global steel companies are pursuing the development of various carbon reduction technologies, we must expand collaboration among global steel companies for the development of low-carbon steel production processes, carbon reduction, and expansion of future demand.”

In particular, Chairman Chang also sought new opportunities by meeting with CEOs of global steel companies to overcome the uncertain global steel industry environment and to cooperate on joint ventures and technology development. He had multifaceted discussions with Jayant Acharya, President of India’s JSW Steel, about integrated steel mill joint ventures. He consulted with Liu Jian, Co-President of China’s Hesteel Group, on ways to strengthen cooperation for joint ventures currently operating in China.

▲POSCO was selected as a Sustainability Champion for the fourth consecutive year. From left: Edwin Basson, Secretary General of the World Steel Association; In-hwa Chang, Chairman of POSCO Group; Narendran, Chairman of the World Steel Association and Chairman of Tata Steel.

At the World Steel Association members’ meeting held the next day, POSCO was selected as a Sustainability Champion for the fourth consecutive year. With this award, POSCO once again solidified its position as a leading company in the ESG field in the global steel industry.

▲POSCO Group Chairman In-hwa Chang (second from left) inspects operations at Senex Energy’s gas field in Queensland, Australia, on April 9.

Subsequently, Chairman Chang visited the Senex Energy gas field site in Queensland, Australia, on the 9th. Senex Energy is an onshore gas field representing the upstream portion of POSCO Group’s natural gas business, which was acquired by POSCO International in 2022 for 442.42 million Australian dollars (approximately 400 billion won).

Senex Energy is pursuing a project to expand natural gas production from an annual 20PJ (petajoules) to 60PJ (equivalent to approximately 1.2 million tons of LNG) by 2026. Once the production expansion is completed, it is expected to supply 10% of eastern Australia’s domestic natural gas demand.

Meanwhile, as Chairman of the Korea-Australia Economic Cooperation Committee, Chairman Chang contributes to close economic cooperation and industrial competitiveness enhancement between the two countries, beyond traditional resource sectors such as minerals and energy, to future business areas.

Chairman Chang calls for securing core business competitiveness based on superior technology… emphasizes establishing ‘Corporate R&D’ system at group level, operating group innovation tasks, and utilizing AI technology

Steel sector focuses on developing high-value-added products, carbon reduction, and cost-saving technologies… overcoming challenges in secondary battery materials through process stabilization, next-generation technology development, and early commercialization

Operating superior group innovation tasks… technical discussions on solving challenges to strengthen the core competitiveness of ‘2 Core + New Engine’ and breakthrough technologies for future growth

POSCO Holdings held a Group Technology Strategy Meeting on March 27 at the POSCO Center in Seoul, presided over by POSCO Group Chairman In-hwa Chang, to secure superior technological competitiveness.

▲Chairman In-hwa Chang presided over the Group Technology Strategy Meeting held at the POSCO Center in Seoul on the 27th.

During the meeting, Chairman Chang stated, “The core of POSCO Group’s competitiveness comes from absolute technological superiority,” emphasizing that “we should overcome challenges in each business area with superior technology, connect it to increased business profits, breakthrough internal and external crises, and leap forward as a world-class materials company.”

Chairman Chang continued, “We must establish a ‘Corporate R&D’ system centered on the holding company to create synergy between research and development organizations and establish a technology development process linked to business strategies to secure absolute technological superiority, and achieve core competitiveness of the group’s key businesses through the operation of ‘superior group innovation tasks’ from a long-term perspective to lead the future market.” He particularly emphasized that “AI must be applied strategically in office work, research, and other appropriate areas to maximize effectiveness.”

The meeting was attended by Chairman In-hwa Chang, representatives of major business companies, Ju-tae Lee, Head of Future Strategy Division, Seong-rae Cheon, Head of Business Synergy Division, Gi-su Kim, Head of New Experience of Technology Hub, and other executives in charge of group technology, who shared technology strategies for steel, energy materials, and next-generation core materials, and discussed methods for successful strategy execution.

In the steel sector, the POSCO Group plans to advance the production technology of high-value-added products and focus on developing innovative products to secure future market share. Additionally, the company plans to achieve results in developing cost-saving technologies for structural innovation, as well as in the development of carbon reduction technologies from an economic perspective.

In the energy materials sector, the company will accelerate early stabilization of secondary battery material processes that have recently begun operation after the construction of lithium plants in Argentina and Gwangyang, reduce costs to strengthen the technological foundation for overcoming the chasm, while accelerating early commercialization through the development of next-generation secondary battery materials such as solid-state battery materials.

Specifically, regarding the anode and cathode material business for secondary batteries, Chairman Chang urged, “Technology development and investment plans must be meticulously established and executed to increase process efficiency and reduce costs.” In response, POSCO Future M participants stated that they are steadily improving operational indicators and planning technology development in cooperation with the New Experience of Technology Hub, securing talent, and making investments, which leads to passionate discussions covering overall management from production to technology collaboration.

Additionally, POSCO Holdings discussed the direction for promoting the ‘Corporate R&D’ system to maximize the effects of research and development. Through the Corporate R&D system, POSCO Holdings aims to strengthen the connection between technology and business strategy across all processes, from R&D to production and sales, and advance the technology development system by focusing on tasks with high effectiveness and growth potential.

Furthermore, POSCO Holdings has selected significant technologies that can secure future competitiveness through innovation in core businesses (2 Core), such as steel and energy materials, and new businesses (New Engine), as ‘Superior group innovation tasks.’ These tasks involve technologies that can address challenges in current business areas to achieve world-class competitiveness, as well as innovative technologies that can create new businesses in the future. POSCO Holdings plans to accelerate development speed and maximize outcomes by promoting these as large-scale convergence projects, where field operations and research institutes collaborate as a single team.

Since his inauguration last year, POSCO Group Chairman In-hwa Chang has emphasized the importance of technology by selecting ‘Leading superior business based on future technology’ as one of the strategies to achieve the management vision of ‘Materials opening the future, innovation toward world-class excellence.’ Last November, Chairman Chang personally presided over the ‘POSCO Group Tech Forum,’ which shared the group’s technology development achievements and discussed development directions, encouraging the group’s technologists to find breakthroughs with innovative technologies and continue innovating toward world-class excellence, turning crises into opportunities.

POSCO Holdings plans to hold another Group Technology Strategy Meeting in the second half of the year to review significant achievements and examine new tasks that can drive innovation and create new business opportunities from a long-term perspective, to overcome challenging internal and external business environments by strengthening technological competitiveness.

Jin-nyeong Yoo, CEO of Angel 6+, and sung-gyu Son, Honorary Professor at Yonsei University, are re-elected as Outside Director … Outside Director tae-kyun Kwon is elected as chairman of the board

Joo-tae Lee, Head of Future Strategy Division, and sung-rae Cheon, Head of Business synergy division, are newly elected as Inside director … ki-soo Kim, head of POSCO N.EX.T Hub, is re-elected as inside director

2024 year-end dividend of 2500 won, annual dividend of 10,000 won per share … 2% of treasury shares to be canceled on March 31

Installing global trade policy team under the direct control of the chairman to effectively respond to the rapidly changing trade environment at the group level

POSCO Holdings held its 57th ordinary general Meeting of Shareholders and board meeting at the POSCO center in Seoul on March 20 and passed major agenda items.

POSCO Holdings livestreamed the general meeting of shareholders online to promote communication with shareholders and their convenience, and for the first time this year, provided simultaneous interpretation in English for overseas investors.

“Despite current crises such as oversupply of steel and the chasm in the electric vehicle market, POSCO Group has focused its strengths on its core business areas, including rebuilding the steel business and securing the competitiveness of the energy materials business, under the new management vision of ‘Materials That Open the Future, Innovation for World-Class Excellence’,” said chairman Chang in his address at the event.

“POSCO Group will strengthen the intrinsic competitiveness of its core business by improving the robustness and efficiency of steel facilities, creating results from overseas growth investments, and proactively securing high-quality lithium resources, thereby building a long-term growth structure, generating solid profits, and improving capital efficiency through continuous restructuring to enhance management performance and shareholder value. we will develop unique ‘super gap’ technology to secure the absolute technological advantage, which is the core of POSCO group’s competitiveness, and stabilize our operation sites with safety as the top priority,” he said.

During the meeting, POSCO Holdings passed the agenda for the appointment of inside and outside directors. Jin-nyeong Yoo, CEO of Angel Six Plus, and sung-gyu Son, honorary professor at Yonsei university, were re-elected as outside directors, and joo-tae Lee, head of future strategy division, and sung-rae Cheon, head of business synergy division, were elected as new Inside directors, and ki-soo Kim, Head of POSCO N.EX.T Hub (Group CTO), was re-elected as inside director.

At the POSCO Holdings board meeting held after the shareholders’ meeting, outside director tae-kyun Kwon was elected as the chairman of the board. Kwon is a financial and investment expert who has served as the director of the trade and investment office of the ministry of knowledge economy, the head of the public procurement service, and the ambassador to the United Arab Emirates. The board also elected joo-tae Lee, head of future strategy division, as the CEO and President.

Joo-tae Lee, head of the future strategy division (CEO and President), is a strategy expert who is expected to contribute to strengthening the group’s future growth engines and enhancing the competitiveness of its core business areas, while sung-rae Cheon, head of the business synergy division, is expected to play a major role in maximizing the Group’s business synergies based on his experience in marketing, overseas business investment, and business management.

In addition, the general meeting of shareholders approved POSCO Holdings’ 2024 financial statements, partial amendments to the articles of incorporation including improvements to the corporate governance structure, and an item on the director remuneration limit. It also approved a 2024 year-end dividend of 2500 won, which confirmed a dividend of 10,000 won per share for the year 2024.

POSCO Holdings will gradually cancel treasury shares, which account for 6% of the total number of shares issued, over the three years from 2024 to 2026 for the purpose of enhancing shareholder value. The company announced a policy to immediately cancel all newly acquired treasury shares other than for employees, and it actually canceled 2% of its treasury shares in July 2024 and immediately canceled newly acquired treasury shares worth approximately 100 billion won after purchasing them from the market. POSCO Holdings is set to cancel an additional 2% of its treasury shares on the 31st of this month.

POSCO Holdings has also installed the Global trade policy team under the direct control of the chairman to effectively respond to the rapidly changing domestic and international trade environment and policy changes, strengthening the group’s trade capabilities. The first head of the global trade policy team is kyung-han Kim, who is currently the head of the communications division at POSCO Holdings.

▲Chairman In-hwa Chang is conducting the 57th POSCO Holdings ordinary general meeting of shareholders.

The 2024 POSCO Group Tech Forum, a gathering of the company’s top engineers, took place on November 6 at the Grand Auditorium of POSTECH. Marking its return as a large-scale event after five years, the forum highlighted achievements in core business areas such as steelmaking and rechargeable batteries. It also celebrated the innovators who lead the development of future innovative technologies with the prestigious POSCO Technology Awards. Experience the energy and innovation of the 2024 POSCO Group Tech Forum!

A Festival for POSCO Engineers Held Offline for the First Time in 5 Years

Since 1989, POSCO Group has gathered its engineers annually to share achievements in core business technologies and discuss future innovation. Due to the COVID-19, the event had been scaled down or held online in recent years. This year marked a significant milestone as the 36th Tech Forum was held offline for the first time in five years, bringing POSCO employees together.

Ahead of the main event, the Grand Auditorium at POSTECH hosted exhibitions showcasing POSCO Group’s outstanding technological achievements. Visitors explored cutting-edge technological achievements including Digital Transformation (DX) innovations that will lead next-generation business, POSCO’s hydrogen reduction steelmaking technology (HyREX), and processes for producing brine-based lithium in Argentina, along with recycling solutions. These highlights showcased the company’s leadership in steel and rechargeable battery materials.

2024 POSCO Group Tech Forum : A Gathering of 1,200 Engineers

The 2024 POSCO Group Tech Forum kicked off at POSTECH’s Grand Auditorium with 1,200 POSCO employees. The tech forum, hosted by two employees from the group, was attended by key leaders including POSCO Group Chairman In-hwa Chang, POSCO President Si-woo Lee, POSCO Holdings CTO Ki-soo Kim, POSCO E&C President Jung-son Chon, and POSCO Future M President Byeong-og Yoo, along with POSCO engineers.

To mark its return after a five-year hiatus, the event opened with congratulatory messages from global partners. Chief technology officers (CTOs) from leading steelmakers and customers such as ArcelorMittal, China Baowu Steel Group, and LG Energy Solution wished for the successful hosting of the forum in video messages.

▲POSCO Group Chairman In-hwa Chang is giving the opening remarks at the 36th POSCO Group Tech Forum.

In his opening remarks, Chairman In-hwa Chang highlighted POSCO Group’s legacy of innovation. “POSCO has always found breakthroughs with innovative technology development,” he said, and encouraged the employees to embrace challenges. “Despite global uncertainties and the difficulties we face, we will turn crises into opportunities through innovation toward becoming world-class.”

Simon Farry of Australian Raw Materials Firm Charts Path to
Steel Industry’s Carbon Neutrality

As a critical player in promoting carbon neutrality in the steel industry, raw materials suppliers are vital. POSCO Group has maintained a strong partnership with Rio Tinto for more than 50 years, beginning in 1973. Simon Farry’s presentation, “Global Strategies of Raw Material Companies for Carbon Neutrality and Collaboration with Steelmakers,” underscored the importance of collective efforts between raw materials suppliers and steelmakers.

“We are delighted to be POSCO’s partner in promoting decarbonization,” Farry said. He reaffirmed Rio Tinto’s commitment to supporting POSCO Group’s carbon neutrality initiatives. In his speech, Farry said that carbon neutrality cannot be achieved in isolation, and emphasized the necessity of collaboration between steel producers and raw material suppliers.

Following the keynote speech, a Q&A session was hosted by Ki-soo Kim, CTO of POSCO Holdings. During the session, Kim showed a copy of the first contract signed between POSCO and Rio Tinto and expressed gratitude for their enduring partnership, saying, “At the time, POSCO had very few resources, yet you provided us with raw materials.”

▲ In the Q&A session, POSCO Group Chairman In-hwa Chang is asking a question to Simon Parry, a carbon neutral executive at Rio Tinto.

In response to a question about hydrogen-based steelmaking, Farry replied that shaft furnaces based on natural gas are a proven technology, but securing high-grade iron ore will be critical due to significant impurities. Since pellet production is cost-intensive, fluidized bed reduction technology for mid- to low-grade iron ore will play an important role. He also noted the potential cost-saving benefits of Korea’s hydrogen steelmaking process.

Developing Future Innovation Technologies with Creative Challenges
2024 POSCO Technology Awards

A highlight of the 2024 POSCO Group Tech Forum was the POSCO Technology Awards, which recognizes employees who have achieved groundbreaking technological advances through collaboration among customers, engineers, researchers, and small enterprises. This year, a total of 14 teams were honored: Innovation Award (two teams), Creativity Award (four teams), Leap Award (three teams), Challenge Award (three teams), and O&C Award (two teams).

▲ The Gwangyang works Steelmaking Department team won the grand prize, the ‘Innovation Award’, at the ‘2024 POSCO Technology Awards’ (Fifth from the left, In-hwa Chang, Chairman of POSCO Group)

The Innovation Award grand prize, with a cash prize of KRW 100 million, was awarded to Deputy Manager Kwan-hyeong Kim of Gwangyang works Steelmaking Department and his team of nine for developing Digital Twin-enabled One-Touch Converter Operation Automation Technology. This breakthrough fully automates the traditional manual steelmaking process that relies on an operator by integrating AI models and vision measurement technologies. It received high praise for significantly enhancing productivity by incorporating AI and robotics into an intelligent factory setup. Following the awards, four recipients took the stage for Tech Talk and shared the motivation behind the development and the expected impact of their innovations.

‘Tech Sessions’ Finding Ideas in Collaboration

The 2024 Tech Forum also hosted 26 dynamic Tech Sessions that brought employees and executives together to collaboratively explore practical technological solutions. A new highlight this year was the introduction of the Special Issues Forum focusing on securing technological competitiveness in key areas such as low-carbon steelmaking (HyREX, hydrogen reduction steelmaking) and rechargeable battery materials (recycling). Expert discussions on these critical themes added to the vibrancy of the event.

▲In-hwa Chang, Chairman of POSCO Group, and employees of the steelmaking department of Gwangyang Works who received the ‘Innovation Award’ are taking a commemorative photo.

The 2024 POSCO Tech Forum was a meaningful convergence of the Group’s innovative technologies and global vision. POSCO employees will continue to take strong steps toward groundbreaking innovation. Stay tuned for more exciting developments and lend your support to their journey!

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.

Chairman Chang said, “We must welcome a new stage of cooperation not only in resources such as minerals and energy, but also eco-friendly materials and infrastructure innovation…”

The chairman attended a dedication ceremony for Korean War Veterans Memorial Auditorium and expressed his gratitude for the noble sacrifices of war veterans.

On September 2, POSCO Group Chairman In-hwa Chang attended the 45th Joint Meeting of the Korea-Australia Business Council as a representative of Korea and sought the growth of future-oriented relations between the two countries.

The joint meeting of the Council, established in 1979, marked its 45th anniversary this year and has become a time-honored collaborative platform for the continuous and solid partnership of the two countries in the economic world, and more than 250 people from the political and economic circles of both countries attended this meeting.

In particular, this year marks the 10th anniversary of the Korea-Australia Free Trade Agreement (KAFTA), which has created a consensus between the governments and business communities of both countries and has added significance in that the Korea-Australia Business Council as well as KAFTA played a key role in elevating bilateral cooperation.

The POSCO Group’s Chairman as well as the Chairman of the Australia-Korea Business Council (AKBC) In-hwa Chang, the head of the Office of Trade Negotiations In-gyo Jeong, and the new Korean Ambassador to Australia Seung-seob Sim attended the meeting as Korea’s representatives. On the Australian side, attendees included Australia-Korea Business Council (AKBC) Chairman Martin Ferguson, Minister for Trade and Tourism Don Farrell, Western Australia Prime Minister Roger Cook, and Australian Ambassador to Korea Jeff Robinson.

In his opening address, Chairman Chang said, “Korea and Australia are participating in pioneering a clean future encompassing eco-friendly materials and infrastructure innovation beyond traditional resource cooperation in minerals and energy,” and added, “We anticipate that closer economic cooperation will help us secure greater competitiveness and opportunities in the global market.”

POSCO Group has been expanding cooperation in the area of resource development with Australia, an important partner in the supply chain of key minerals such as iron ore, lithium, and nickel, since the early 1980s, and cumulative investments up to the present amount to 4 trillion won. Furthermore, Korea is purchasing steel materials worth more than 7 billion dollars from Australia every year, which amounts to 70% of the total amount of raw material purchases.

In particular, amid the recent escalation of global geopolitical risks and “friend shoring,” in which friendly countries are uniting and building supply chains, POSCO Group plans to lead the economic and industrial growth of the two countries by further cementing trust with Australia, where cooperation in resource development has been ongoing for several decades.

In the joint meeting this year, the two countries discussed cooperation measures in five areas: key mineral supply chain, AI and Startups, defense/aerospace, food and infrastructure, and clean energy.

On September 3 and 4, Chairman Chang will have one-on-one talks with Australian government officials including Minister for Trade and Tourism Don Farrell, Minister for Resources Madeleine King, and Western Australia Prime Minister Roger Cook, as well as the top management of major corporations.

Chairman Chang plans to share POSCO Group’s vision with the Australian government and request its unsparing support so that the group’s key businesses, such as an HBI project being carried out in Australia, lithium for secondary cell materials, and graphite, can proceed smoothly.

In addition, he plans to meet with Chairman Kathleen Conlon of Pilbara Minerals and ask for the stable supply of lithium concentrate to POSCO Pilbara Lithium Solution, a joint venture of the two companies, and plans to discuss plans for expanding cooperation in the lithium business.

Then, on September 4, he is expected to attend a dedication ceremony for the Korean War Veterans Memorial Auditorium built in a joint sponsorship with Roy Hill, an Australian raw material partner, and express his gratitude for the noble sacrifices of Australian war veterans. The memorial auditorium was built to permanently commemorate the value of peace and solidarity attained by overcoming the pain of war.

POSCO Group has established a cooperative relationship with Australia not only in steel materials but also future business areas such as HBI, hydrogen, and lithium, and plans to build a strategic partnership while continuously having exchanges with potential Australian partners in new business areas including graphite and rare earth elements.

▲In-hwa Chang, Chairman of the Korea-Australia Business Council (KABC) (POSCO Group Chairman)(right) and Martin Ferguson, Chairman of the Australia-Korea Business Council (AKBC).