Selected a specialist in rare earth separation and refining as its first investment target, committing KRW 8 billion

Secured raw material sources in Southeast Asia, including Malaysia and Laos for a production foundation with an annual capacity of 4,500 tons

Plans to establish a joint plant with U.S.-based ReElement to complete a North American production system for rare earths/permanent magnets/traction motor cores by 2028

POSCO INTERNATIONAL is accelerating the development of a global supply chain for heavy rare earth elements, essential materials for electric vehicle (EV) traction motors.

Partnering with POSCO INVESTMENT, the company has launched its inaugural KRW 25 billion CVC fund, and the fund’s first strategic move involves an KRW 8 billion investment in a domestic specialist in rare earth separation and refining.

This fund is more than a financial vehicle as it will serve as a strategic investment platform for technological synergy and new business expansion. The fund will be managed by POSCO INVESTMENT, a venture investment specialist within the POSCO Group, and both companies plan to continuously identify promising technology companies that align with future growth strategies.

At its heart, this investment is about securing a stable supply of heavy rare earths. Elements such as dysprosium (Dy) and terbium (Tb) are essential for high-performance magnets in EV traction motors, as they allow them to stay magnetic even under intense heat. However, because production and refining are concentrated in a few countries, these materials pose a significant structural risk to the global supply chain.

The target company of this investment is a domestic specialist in rare earth separation and refining that possesses integrated process capabilities ranging from separation and refining to metallization. The company holds proprietary technology to produce heavy rare earth oxides at 99.5% purity and further reduce them into metals at 99.9% purity. Through this investment, the company intends to secure a stable supply source within the supply chain of heavy rare earths and build a stronger foundation for future business growth.

Alongside this domestic investment, the company is also making Southeast Asia as a base to strengthen its global system for raw material procurement. It plans to establish a USD 30 million joint venture with a specialized Malaysian company for separation and refining, validate an environmentally friendly mining and stable production system, and then proceed to full-scale mass production. In addition, the company is participating in a rare earth separation and refining project in Laos to expand its raw material procurement network across Southeast Asia.

These regional efforts are expected to secure an annual supply of roughly 4,500 tons of rare earth separation and refining products (approximately USD 230 million at today’s market prices) that can be secured from Southeast Asia. POSCO INTERNATIONAL intends to make additional investments in the future to expand production capacity to more than 10,000 tons.

The company is also accelerating its entry into the North American market, leveraging raw materials secured in Southeast Asia. In partnership with the U.S.-based company ReElement, it is establishing a joint rare earth separation and refining plant with an annual capacity of 3,000 tons, with full-scale production scheduled to begin in the second half of 2027. Furthermore, it plans to secure an annual production capacity of 3,000 tons for permanent magnets by 2028.

Through this series of investments, it aims to complete the full rare earth value chain—from mining to separation and refining to permanent magnet production—and integrate it with the manufacturing of traction motor core to continuously strengthen the competitiveness of its core EV parts business.

“This investment is a strategic move to simultaneously diversify our core mineral supply chain and sharpen our competitiveness in the mobility materials business,” a POSCO INTERNATIONAL official stated. “Moving forward, we will continue to leverage our CVC fund to identify promising companies with strong business synergy and secure new growth drivers for the future.”

Meanwhile, POSCO Group Chairman Chang In-hwa has consistently emphasized the importance of timely investments in core minerals to stabilize the global supply chain and capture future growth opportunities in the secondary battery materials market. Last year, POSCO HOLDINGS invested a total of KRW 1.1 trillion to expand its footprint in the lithium sector, securing additional stakes in Australian mines and Argentine brine projects. This year, commercial lithium production in Argentina has begun, and the Australian lithium mine is expected to start contributing to profits in the second half of the year, following the completion of the stake acquisition.

▲ Panoramic view of POSCO International headquarters.

On the same day, the company completed construction of a palm oil refinery on East Kalimantan Island with an annual capacity of 500,000 tons, in partnership with GS Caltex

Since Chairman Jang In-Hwa took office, the group has accelerated efforts to secure future growth businesses while also contributing to strengthening national food security

POSCO INTERNATIONAL has completed a full value chain in its palm oil business—from palm seed development to producing palm oil for biofuel feedstock—by acquiring Sampoerna Agro, one of Indonesia’s leading palm companies, and inaugurating a new palm oil refinery in the country on the same day.

▲ Panoramic view of the Sampoerna Agro palm plantation in Indonesia, acquired by POSCO INTERNATIONAL

On November 19, POSCO INTERNATIONAL acquired shares in the Indonesian listed company Sampoerna Agro, securing management control and becoming its largest shareholder. Intended to expand its global palm business value chain, the investment for this acquisition is estimated at approximately KRW 1.3 trillion, based on the exchange rate at the time of disclosure.

Through this acquisition, POSCO INTERNATIONAL has added 128,000 hectares of plantations, which is more than double the size of Seoul, and now possesses a total global farming base of 150,000 hectares, including its existing plantations in Papua, Indonesia.

As a leading Indonesia-listed company, Sampoerna Agro operates palm plantations across Sumatra and Kalimantan islands, owning a palm seed subsidiary and research institute that rank second in domestic market share in Indonesia.

What is noticeable about the newly acquired plantations is that stable profits can be generated from the very beginning of the acquisition since the palm trees have already reached maturity. The palm plantation business is a long-term, high-return industry, as harvesting becomes possible three to four years after planting and production continues for over 20 years.

POSCO INTERNATIONAL began developing palm plantations in Papua in 2011, entered commercial production in 2016, and now operates three milling plants that produce 210,000 tons of palm oil annually. As the existing plantations have reached maturity, they have made a significant contribution to the group’s profitability, recording an average operating profit margin of 36% through last year.

On the same day, POSCO INTERNATIONAL held the completion ceremony for PT. ARC (PT. AGPA Refinery Complex), a palm oil refining joint venture established with GS Caltex in Balikpapan, East Kalimantan, Indonesia.

PT. ARC is owned 60% by POSCO INTERNATIONAL and 40% by GS Caltex, with a total investment of USD 210 million. The newly completed refinery has an annual refining capacity of 500,000 tons, equivalent to approximately 80% of Korea’s annual imports of refined palm oil.

▲ Group photo of key attendees at the inauguration ceremony of the East Kalimantan refining plant on the 19th. (From fourth left): Chun Seong-Rae, Head of Business Synergy at POSCO Holdings; Lee Seung-Hoon, Head of Supply & Trading at GS Caltex; Heo Se-Hong, GS Caltex CEO; Lee Kye-In, POSCO INTERNATIONAL CEO; Park Soo-Deok, Mayor of Balikpapan Rahmad Mas’ud, and Korean Ambassador to Indonesia; Moon Jin-Seok, Vice Chairman of KORINDO Group.

The ceremony was attended by approximately 100 key figures, including POSCO INTERNATIONAL CEO Lee Kye-In, GS Caltex CEO Heo Se-Hong, Indonesian Deputy Minister of Energy and Mineral Resources Yuliot Tanjung, Mayor of Balikpapan Rahmad Mas’ud, and Korean Ambassador to Indonesia Park Soo-Deok. The refinery, which broke ground in May last year and has now been completed, will undergo trial operations and is scheduled to begin full production later this year.

POSCO INTERNATIONAL will supply crude palm oil produced from its plantations to PT. ARC, and the refined oil produced there will be sold both in the Indonesian domestic market and exported to South Korea, China, and other countries. GS Caltex plans to leverage its accumulated expertise to enhance the operational efficiency of the refining facilities and supply refined palm oil for biodiesel to the Korean market.

Going forward, the POSCO Group is expected to strengthen its competitive edge in the global palm oil market, helping to reduce Korea’s reliance on imported edible oils and establish a stable production and supply base for palm oil for enhanced national food security.

Since Chairman Jang In-Hwa took office, the POSCO Group has been actively seeking future growth businesses for stable generation of profits. The strengthening of the Indonesian palm oil business is part of the group’s broader infrastructure initiatives, supported by POSCO INTERNATIONAL’s extensive experience in overseas agro business.

Meanwhile, to bolster future competitiveness, the POSCO Group restructured its business portfolio last year into “Two Core (steel + secondary battery materials) + New Engine (new growth businesses)” and is executing strategic investments to preempt high-growth, high-return markets such as India and North America. In India, the group is pursuing the establishment of a local steel mill in partnership with the JSW Group. In September, to proactively respond to trade barriers and accelerate its entry into the North American market, it signed an MOU with Cleveland-Cliffs for cooperation in the steel business.

Solidified relationship since 2023 MOU… Strengthens specific business opportunities and execution

Accelerates the expansion of renewable energy portfolio and response to low-carbon transition by integrating group capabilities

POSCO INTERNATIONAL (CEO Lee, Kye-In) is expanding cooperation with global energy leader Equinor of Norway in key energy sectors such as offshore wind, steel supply, and LNG.

On the 29th, at Cheongsongdae, Pohang, POSCO INTERNATIONAL announced that it signed an MOU with Equinor to expand energy cooperation. The signing ceremony was attended by POSCO INTERNATIONAL CEO Lee, Kye-In and Equinor Korea CEO Bjørn Inge Braathen, among key officials from both companies.

Building on their 2023 MOU, POSCO INTERNATIONAL and Equinor plan to further strengthen their partnership by continuously turning individual project opportunities into concrete initiatives and enhancing their implementation.

POSCO INTERNATIONAL CEO Lee, Kye-In said, “Through strategic partnership with Equinor, we will further strengthen competitiveness in the global energy market,” adding, “By pooling our expertise, we will take the lead in future energy sectors, including renewables and low-carbon fuels.”

Equinor Korea CEO Bjørn Inge Braathen stated, “With close cooperation with POSCO INTERNATIONAL, we plan to explore a wide range of new energy solutions both in Korea and globally.”

Meanwhile, POSCO INTERNATIONAL is currently operating a 14.5MW solar power facility and a 62.7MW onshore wind farm in Sinan, Jeollanam-do, and is developing a 300MW offshore wind farm in the nearby waters. It is also involved in offshore wind energy co-development projects in the East Sea region, further expanding its renewable energy portfolio.

Equinor is a Norwegian state-owned integrated energy company engaged in oil, gas, and renewables in over 30 countries worldwide. It is currently developing the ‘Firefly’ floating offshore wind project (750MW) off the coast of Ulsan. It obtained a power generation permit in the second half of 2021 and has been engaged in constructive discussions with the government and obligated suppliers following the fixed-price bidding; discussions to assess investment viability and secure financing are still ongoing.

With this MOU, POSCO INTERNATIONAL plans to combine POSCO Group’s capabilities in steel, energy, and infrastructure with Equinor’s global expertise in offshore wind energy, ultimately strengthening a global partnership model that leads the shift toward sustainable low-carbon ecosystems and the era of energy mix transition.

▲ POSCO INTERNATIONAL signed a business agreement with Equinor of Norway. (From left) Min Chang-Kie, Head of POSCO INTERNATIONAL Energy Business Division; Lee Kye-In, POSCO INTERNATIONAL CEO; Bjørn Inge Braathen, Equinor Korea CEO.

Recently, as national policies have been strengthened to address the climate crisis and the transition to sustainable energy has been accelerating, the aviation industry is rapidly shifting from conventional fossil fuel-based jet fuel to sustainable aviation fuel (SAF). With Young-hoon Kim, Senior Research Fellow at the POSCO Research Institute (POSRI), we conduct an in-depth analysis of SAF as a new growth engine, changes in global market dynamics, and Korea’s strategic response as a leading jet-fuel exporter.

Senior Researcher Young-hoon Kim, POSCO Research Institute

Rapidly Expanding SAF Market

In the past, the automotive industry rose to the challenge of reducing its carbon footprint, resulting in the widespread presence of eco-friendly vehicles on today’s roads. Today, the aviation industry accounts for approximately 2-3% of global carbon emissions and, much like the automotive sector in the past, is now grappling with the challenge of reducing them. It is no exaggeration to say that the aviation sector’s sustainability increasingly hinges on SAF. SAF is a fuel developed to replace conventional jet fuel, produced from raw materials such as used cooking oil; vegetable and animal oils/fats; biomass; animal manure; waste wood; municipal solid waste; and captured carbon dioxide (CO2). It delivers performance equivalent to conventional jet fuel while reducing greenhouse-gas emissions from the production process by up to about 80%.

The first use of SAF in the aviation industry took place in 2008, but usage was negligible at the time. A major shift began in 2021, when the International Air Transport Association (IATA) adopted a resolution at its 77th Annual General Meeting to achieve net-zero carbon by 2050. Following this decision, the share of SAF in global jet fuel consumption rose steadily: 0.1% in 2022, 0.2% in 2023, and 0.3% in 2024, increasing by approximately 0.1 percentage points each year.

The global SAF market is growing rapidly as countries around the world gradually increase mandatory SAF blending requirements. By 2030, the United States, Japan, and Singapore plan to require SAF to account for 10% of total jet fuel use. The European Union (EU) has set a target of 6%, and Indonesia aims for 2.5%. Korea is also aligning with these global efforts. In August 2024, the government announced a policy that will make a 1% SAF blend mandatory for all international departing flights starting in 2027. As a result of these policy shifts, the global SAF market is expected to grow to around USD 67 billion (approximately KRW 92.4 trillion) by 2030 — roughly 30 times its current size.

If the SAF market is formed, various raw materials including biomass will be required, and there is a high possibility that the global raw material supply chain will be reorganized. Therefore, countries that possess raw materials or have strengths in raw material development are paying close attention to SAF as a new growth industry. In the past, the aviation fuel market was a monopoly and oligopoly market based on crude oil as a single raw material. However, because SAF uses various raw materials such as oils and fats, herbaceous and lignocellulosic biomass*, and industrial off-gases (CO, CO2, H2), the market has shifted to an intensely competitive one.

*Herbaceous and lignocellulosic biomass refers to trees and herbaceous plants containing cellulose, as well as products and waste derived from them. It is mainly used as a raw material for the production of biofuels, bioplastics, and biochemical substances.

U.S. Eyes SAF as a New Growth Industry

The United States is emerging as an optimal location for SAF production, leveraging its competitive advantage in producing bioethanol, a next-generation SAF raw material, from agricultural crops such as soybeans, corn, and sugarcane, as well as from agricultural byproducts. The Trump administration has also expressed interest in fostering the domestic SAF industry, pledging to maintain support under the Inflation Reduction Act (IRA).

In May 2025, the administration announced a restructuring plan to dramatically reduce or terminate clean energy tax credits. However, it maintained the Section 45Z Clean Transportation Fuel Credit for SAF, which provides up to USD 1.75 per gallon (approximately KRW 2,419) in incentives, and extended its expiration date by five years, from 2027 to 2032. In particular, while continuing to support fuels that achieve at least a 50% reduction in CO2 emissions, the U.S. framework, unlike global standardization efforts, excludes Indirect Land Use Change (ILUC)* CO2 emissions from its calculation boundary. This approach has enabled corn-based bioethanol to be included as an eligible fuel for federal support.

*Indirect Land Use Change (ILUC) refers to land-use changes that occur when farmland or pasture previously used for food or feed crops is converted to biofuel crop production, and to meet the displaced demand, forests or grasslands that had been used for other purposes are cleared and converted into cropland.

In other words, when corn in the United States is used for bioethanol, the supply of corn for food decreases, leading other countries to convert forests into cropland to meet that demand. Because corn has high ILUC emissions, it is a crop with a low CO2 reduction rate. However, in the United States, because ILUC emissions are excluded from the CO2 calculation boundary, corn’s CO2 reduction rate rises to more than 50% compared with conventional jet fuel, and it has therefore been included as an eligible fuel for support programs.

Japan Takes an Active Role in Building the SAF Market

How is Japan responding? At the U.S.–Japan summit in February 2025, Japan’s Prime Minister Shigeru Ishiba stated that securing a stable supply of resources such as bioethanol, in addition to LNG, from the United States would bring great national benefit to Japan. President Trump also noted his close relationship with the farming community and expressed strong interest in building a bilateral supply chain based on bioethanol.

Japan, leveraging the resource development capabilities of its general trading companies, is establishing a supply network for SAF raw materials such as used cooking oil, vegetable oils, and bioethanol. To encourage investment in domestic SAF production, the government provides subsidies covering between one-third and one-half of capital costs. To meet its mandate requiring 10% SAF use by 2030, Japan will need about 1.3 million tons of SAF per year. Four major refiners are currently reviewing six SAF production projects, and the government plans to cover between one-third and one-half of the investment depending on the technology. Japanese trading companies are participating as reliable raw material suppliers for SAF production in Japan through two of these projects, importing bioethanol from the United States and Brazil. As Japan’s domestic SAF production increases, they are expected to expand their role from supplying the domestic market to exporting SAF.

China and India are Transitioning from Raw Material Exporters to SAF Producers

China is shifting toward producing and exporting SAF domestically as the United States has strengthened import tariffs on Chinese used cooking oil, making it more difficult to export raw materials, and as demand for SAF has expanded mainly in the European Union (EU). One of China’s SAF producers, Zhejiang Jiaao Enprotech, has received government approval to export up to 370,000 tons of SAF and has already exported 13,400 tons this year.

India also has abundant SAF raw materials, including used cooking oil and crop residues, and it is expected that the country will be able to produce up to 24 million tons of SAF by 2030. As the domestic aviation market continues to grow rapidly, up to 10 million tons are expected to be consumed domestically, and the remainder will be directed toward exports.

POSCO Group Secures Diverse Core Raw Materials for SAF Production

Korean companies are also actively pursuing the SAF market. POSCO possesses a range of raw materials that can serve as a foundation for expanding into the SAF business, making it possible to enter the market through collaboration with refiners.

▲ POSCO International Indonesia palm plantation (left) and workers at the palm plantation. (Image Source: POSCO International)

POSCO International began developing plantations on Papua Island, Indonesia, in 2011 and started commercial palm oil production in 2016. In the palm oil refining process, various byproducts such as palm oil mill effluent and empty fruit bunches are generated, and since they are recognized as SAF raw materials, refiners’ interest is high. Sugarcane and corn, which are drawing attention as next-generation SAF raw materials, and bioethanol made by saccharifying them, can also be secured through POSCO International’s trading capabilities.

POSCO International has already laid the groundwork for growth in the eco-friendly business market, including SAF, by obtaining two international certifications in October 2024. The certifications obtained are ISCC EU*, a global certification that ensures the sustainability of biofuel production in accordance with the EU’s Renewable Energy Directive, and ISCC CORSIA**, a certification that guarantees the sustainability of aviation fuels. Through the acquisition of these international certifications, POSCO International has secured both the qualification to export biofuels and raw materials to the European market and the eligibility to supply raw materials for SAF production. This achievement is anticipated to provide substantial opportunities for growth in the EU and the international aviation industry.

*ISCC EU (International Sustainability and Carbon Certification EU) is an international certification program that verifies the sustainability of biofuels in accordance with the European Union (EU) Renewable Energy Directive.

**ISCC CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) is a program that certifies Sustainable Aviation Fuel (SAF) that meets the standards of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) established by the International Civil Aviation Organization (ICAO).

▲ POSCO Holdings, along with LG Chem, the Korea Research Institute of Chemical Technology, and Gyeongsangbuk-do, has formed the “Steel Industry CCU Consortium” and is participating in the mega project for carbon dioxide capture and utilization promoted by the Ministry of Science and ICT. The CCU Consortium proposed the Pohang Steelworks as the demonstration site and received final approval from the Ministry of Science and ICT in October 2024, aiming to start the demonstration project in 2026 after a preliminary feasibility study in 2025.

Various by-product gases are generated at POSCO’s steel mills. Among these, carbon monoxide (CO) and CO2 are regarded as next-generation SAF raw materials due to the absence of supply limitations. This technology involves producing SAF by converting CO into bioethanol and refining it into aviation fuel, or by reforming* CO2 into CO and synthesizing it with clean hydrogen. The Future Technology Research Laboratories of POSCO Holdings, in collaboration with LG Chem, plans to initiate a large-scale carbon capture and utilization (CCU) mega project in 2026, aimed at capturing CO2 and converting it into SAF raw materials. Upon successful completion of the demonstration project, POSCO is expected to enter the next-generation SAF market.

*Reforming is a technology that uses a metal catalyst to react CO2 and hydrocarbons such as methane to produce synthesis gas (a mixture of hydrogen and CO).

Preemptive Entry into the SAF Market to Seize Opportunities

So, is the transition of the aviation fuel market to SAF an opportunity or a threat for Korean companies? As Korea is the world’s leading exporter of aviation fuel, the global shift to SAF is seen more as a threat than an opportunity for Korean companies. For domestic aviation and refining industries, slowing down the speed of the transition to the SAF market may be advantageous in the short term.

ⓒ Getty Images Bank

However, since SAF is a strategic item that can change the structure of the multi-trillion-won aviation fuel market, it is important to note that major countries are recognizing it as a new industry and are actively participating in market creation. In particular, considering that the United States, Australia, Japan, Singapore, and the Netherlands, which are actively participating in SAF market creation, are Korea’s major aviation fuel export destinations, the market should be reviewed from a comprehensive perspective of defending the existing aviation fuel market and creating new SAF industries.

POSCO Group needs to review ways to participate in the SAF market in advance by utilizing POSCO International’s resource development capabilities and POSCO’s CCU technology using carbon dioxide. It is especially important to review various business models, including preemptively participating in overseas markets, which are expanding relatively quickly, beyond the domestic model, where the pace is expected to be slower.

Aims to strengthen POSCO Group’s secondary battery business and enhance the supply chain for mineral security in Korea

POSCO INTERNATIONAL has begun developing the world’s second-largest graphite mine by reserves. By building a supply chain for graphite—an essential EV battery material—it aims to boost the competitiveness of POSCO Group’s secondary battery business while reinforcing the supply chain for mineral security in Korea.

▲ Officials and company representatives at the groundbreaking ceremony of the Mahenge Graphite Mine in Tanzania. (From left) Kim Dae Young, CRO (Chief Regional Officer) of Africa and Middle East Region at POSCO INTERNATIONAL; Ahn Eun Ju, Ambassador of the Republic of Korea to Tanzania; John De Vries, CEO of Black Rock Mining; Adam Kighoma Malima, Regional Commissioner of Morogoro, Tanzania; Anthony Mavunde, Minister of Minerals, Tanzania; Richard Crookes, Non-Executive Director of Black Rock Mining; Nehemiah Kyando Mechechu, Treasury Registrar, Ministry of Finance of Tanzania; Boma Raballa, Chief Commercial Officer (CCO) of CRDB Bank, Tanzania; Christopher Ellinger, Deputy High Commissioner of Australia to Kenya.

On the 9th (local time), POSCO INTERNATIONAL held a groundbreaking ceremony at the Mahenge mine in Ulanga, Morogoro, Tanzania. The event was attended by 100 officials, including Kim Dae Young, CRO (Chief Regional Officer) of Africa and Middle East Region at POSCO INTERNATIONAL; Anthony Mavunde, Tanzania’s Minister of Minerals; John De Vries, Black Rock Mining CEO; Ahn Eun Ju, Ambassador of the Republic of Korea to Tanzania.

▲ Groundbreaking ceremony of the Mahenge Graphite Mine in Tanzania. (From left) Kim Dae Young, CRO (Chief Regional Officer) of Africa and Middle East Region at POSCO INTERNATIONAL; Ahn Eun Ju, Ambassador of the Republic of Korea to Tanzania; John De Vries, CEO of Black Rock Mining; Richard Crookes, Non-Executive Director of Black Rock Mining; Adam Kighoma Malima, Regional Commissioner of Morogoro, Tanzania; Anthony Mavunde, Minister of Minerals, Tanzania; Nehemiah Kyando Mechechu, Treasury Registrar, Ministry of Finance of Tanzania; Boma Raballa, Chief Commercial Officer (CCO) of CRDB Bank, Tanzania; Christopher Ellinger, Deputy High Commissioner of Australia to Kenya.

The Mahenge mine holds approximately 6 million tons of natural graphite reserves. Its development is led by Australian resource company Black Rock Mining, with POSCO Group participating as a strategic partner. This project is part of the Mineral Security Partnership (MSP), a global initiative led by major countries such as the US, South Korea, Japan, and the EU to ensure mineral security. The MSP, a multilateral framework aimed at stabilizing the supply of critical minerals, is expected to play a key role in securing the critical mineral supply chain.

Graphite is a critical material for EV battery anode production. China dominates over 70% of global supply, making supply chain stability a global issue. Recently, major countries are intensifying efforts to reduce dependence on China.

The US Department of Commerce made a preliminary decision to impose a 93.5% anti-dumping tariff on Chinese graphite. When added to existing tariffs, the total rate reaches up to 160%, practically limiting Chinese graphite’s access to the U.S. market. These strong US trade measures increase the need for supply chain diversification among major governments and global automakers and battery industries. POSCO INTERNATIONAL’s project is gaining attention as a key initiative meeting these strategic demands.

In 2021, POSCO Group joined the Mahenge graphite mine development as POSCO Holdings invested $7.5 million in Black Rock Mining. POSCO INTERNATIONAL signed a 30,000-ton annual graphite supply contract in 2023, followed by a second-phase contract of the same scale in 2024, strengthening cooperation.

Black Rock Mining plans to conduct a capital increase this year for the final investment decision (FID). POSCO Holdings currently holds a 7.45% stake in Black Rock Mining, and upon completion of POSCO INTERNATIONAL’s $40 million investment agreement in September 2024, POSCO Group’s stake will increase to 19.9%.

Starting commercial production in 2028, POSCO INTERNATIONAL will receive 60,000 tons of natural graphite annually for about 25 years. The secured graphite will be used in the production of anode materials by POSCO Future M, significantly increasing the group’s raw material self-sufficiency for secondary battery materials.

This will enhance POSCO Group’s secondary battery material competitiveness, improve raw material self-sufficiency for domestic battery industry, and play a key role in national mineral security and global supply chain stabilization.

Through this African graphite mine development, POSCO INTERNATIONAL expands its resource development portfolio and enhances global resource development capabilities. The company plans to strengthen cooperation with major mineral suppliers to enhance the stability of the secondary battery material supply chain.

A POSCO INTERNATIONAL official said, “The Mahenge mine development is a significant opportunity to expand our resource development capabilities in Africa,” adding, “We expect this project to enhance POSCO Group’s anode material competitiveness, stabilize the global battery material supply chain, and contribute to domestic mineral security.”

Black Rock Mining CEO John De Vries said, “This groundbreaking ceremony marks the Mahenge project’s entry into full-scale execution,” adding, “Close cooperation with POSCO INTERNATIONAL made this achievement possible. We will work together for successful commercial production.”

Secured Annual Production Capacity of 1.2 Million Units, Establishing a Key Hub to Respond to Rapidly Growing European EV Market

POSCO Group Maximizes Motor Efficiency with Hyper NO Steel Sheets and EMFree Technology

POSCO INTERNATIONAL has completed its European hub to target the global electric vehicle market.

With the completion of the Poland plant, POSCO INTERNATIONAL has established a production belt across Asia, North America, and Europe, aiming to achieve a 10% global market share by 2030. The Poland plant, with an annual production capacity of 1.2 million units, is expected to become a key production hub to meet the rapidly growing EV demand in Europe, driven by the EU’s 2035 zero-carbon emission policy for new vehicles.

▲ (From third left) Monika Jurek, Governor of Opole Province; Tae Jun-Yeol, Ambassador of Korea to Poland; Lee Kye-In, POSCO INTERNATIONAL CEO; and Kim Sung-Yeon, President of POSCO Research Institute.

The completion ceremony, held on October 1 (local time) in Brzeg, Opole Province, Poland, was attended by POSCO INTERNATIONAL CEO Lee Kye-In, Opole Province Governor Monika Jurek, and South Korean Ambassador to Poland Tae Jun-Yeol, among others. The Poland plant, built with an investment of 94.1 billion KRW on a 100,000 ㎡ site, will begin trial production in October and start full-scale mass production in December.

POSCO INTERNATIONAL prioritized safety throughout the construction process and successfully completed the project through systematic site management.

According to the International Energy Agency (IEA), EV sales in Europe are projected to reach 4 million units (25% of new vehicle sales) by 2025 and surpass 55% by 2030. The EU’s ban on internal combustion engine vehicle sales by 2035 is accelerating the shift to electric vehicles. As Hyundai-Kia ramp up their local EV production in Europe, demand for drive motor cores is expected to grow significantly.

With the completion of the Poland plant, POSCO INTERNATIONAL has completed its global drive motor core production network. It will establish a production system of 7.5 million units annually by 2030, with 2.5 million units in Korea (Pohang and Cheonan), 3.5 million in Mexico, 1.2 million in Poland, and 300,000 in India. This supports its ‘Local to Local’ strategy—producing and delivering components close to customer sites—enhancing responsiveness to regional market demands.

▲ POSCO INTERNATIONAL CEO Lee Kye-In signed the first motor core prototype.

POSCO INTERNATIONAL’s drive motor cores incorporate POSCO Group’s non-oriented electrical steel sheets (Hyper NO) and proprietary EMFree technology. EMFree technology applies thin layers of adhesive for lamination, improving energy efficiency and minimizing noise and vibration compared to the conventional EMBO method—this enhances both EV driving range and in-cabin quietness.

POSCO INTERNATIONAL has already secured orders for 35 million drive motor cores through 2033. The Poland plant will initially supply 1.68 million units for Hyundai-Kia’s European EV production, with plans to expand its supply to other European automakers such as Volkswagen.

Sales from POSCO INTERNATIONAL’s drive motor core business are projected to grow from 450 billion KRW in 2025 to 1.5 trillion KRW by 2030.

POSCO INTERNATIONAL CEO Lee Kye-In stated, “The Poland drive motor core plant is a key hub for preemptively securing the European EV market,” adding, “POSCO Group will lead the future mobility market with its integrated group-wide capabilities such as EV-spec steel, battery materials, and components.”

Meanwhile, POSCO Group has established a system to seamlessly connect the new drive motor core plant with its existing steel processing center in Poland, enabling integrated supply of drive motor cores based on high-efficiency electrical steel sheets, along with premium steel. This will allow faster response to the needs of European automakers and parts manufacturers.

▲ (From seventh left) Monika Jurek, Governor of Opole Province; Tae Jun-Yeol, Ambassador of Korea to Poland; Lee Kye-In, POSCO INTERNATIONAL CEO; and Kim Sung-Yeon, President of POSCO Research Institute.

Plans to conduct a feasibility study by the first half of 2026 for a 15-year BOT project

On the 15th, POSCO INTERNATIONAL signed a memorandum of understanding (MOU) with the city of Ulaanbaatar, the capital of Mongolia, at Ulaanbaatar City Hall to promote a heating supply project utilizing sewage heat.

The signing ceremony was attended by key figures from both sides, including Chung Kyung-Jin, Head of Corporate Strategy and Finance Group at POSCO INTERNATIONAL, and T. Davaadalai, First Deputy Governor of Ulaanbaatar.

Under this MOU, POSCO INTERNATIONAL will drive the plan to supply waste heat from the central sewage treatment plant in Ulaanbaatar to nearby redeveloped residential areas.

Following a joint feasibility study to be completed by the first half of 2026, the project is expected to move into full-scale implementation in the second half of the year under a 15-year Build-Operate-Transfer (BOT) model, provided its economic and technical viability is confirmed. Upon completion, the project will provide district heating to a newly constructed residential complex of approximately 4,000 households.

Ulaanbaatar is known for having some of the world’s worst air pollution during winter, largely due to coal-based heating. POSCO INTERNATIONAL came up with a solution to address this issue by recycling waste heat from the sewage treatment process for district heating, thereby reducing both greenhouse gas emissions and fine dust.

The company has already showcased its expertise in the field through its district heating project utilizing sewage heat at the Tancheon Water Treatment Center in Seoul. Through this project, the company supplies 204,900 Gcal of heat annually to 20,000 households in Gangnam-gu, saving the equivalent of about 20,490 tons of oil and cutting 33,972 tons of carbon dioxide emissions.

“This MOU is significant as it not only helps address the environmental issues in Ulaanbaatar but also highlights POSCO Group’s environmentally friendly energy technologies and global business capabilities,” A POSCO INTERNATIONAL official said. “We plan to explore opportunities to expand this business model beyond Mongolia to other Central Asian regions.”

T. Davaadalai, First Deputy Governor of Ulaanbaatar, remarked, “We expect POSCO INTERNATIONAL’s proven sewage heat technology to offer practical solutions to the air pollution issues in the city. Through this collaboration, we will be able to create a new model that enhances citizens’ quality of life and supports sustainable urban development.”

▲ POSCO INTERNATIONAL signed an MOU with the city of Ulaanbaatar, Mongolia. From left: Chung Kyung-Jin, Head of Corporate Strategy and Finance Group at POSCO INTERNATIONAL, and T. Davaadalai, First Deputy Governor of Ulaanbaatar.

The ‘Trade Delegation’ program has supported more than 70 companies over three years, establishing a platform for mutual growth

On the 4th, POSCO INTERNATIONAL held a workshop to share the three-year achievements of the ‘Trade Delegation’ program, which supports the overseas expansion of small and medium enterprises (SMEs).

For the ‘2025 Mutual Growth Workshop: Trade Delegation Re-Connect Day,’ held at POSCO Tower in Songdo, Incheon, more than 30 participants, including those from 14 SMEs and representatives from partner organizations, attended to share outstanding examples of overseas expansion and discuss joint plans for the future.

The Trade Delegation program is an exemplary initiative for mutual growth that leverages more than 100 global networks established by POSCO INTERNATIONAL. POSCO INTERNATIONAL’s overseas branches and subsidiaries directly support SMEs for local market research and product validation. They also participate in contract negotiation processes to increase the export success rate for SMEs.

Since fully launching the program in 2022, POSCO INTERNATIONAL has connected more than 70 SMEs with at least 570 overseas buyers, facilitating over 1,200 consultations. So far, a total of 14 export consultation events have been held, and through active business discussions, numerous export contracts have been successfully concluded, providing substantial support for SMEs’ overseas expansion.

During the workshop, EUCNC Co., Ltd. and Reset Company Co., Ltd. presented outstanding examples of collaboration with POSCO INTERNATIONAL to identify local clients and conduct prototype validation in Malaysia, Indonesia, Poland, and more. In the subsequent networking session, POSCO INTERNATIONAL’s executives and employees with extensive experience as overseas expatriates listened to the challenges of overseas business faced by SMEs and proposed solutions.

Representatives from the Korea Environmental Industry & Technology Institute and the Korea Trade Insurance Corporation also attended to share information on government support projects for SMEs and guidance on utilizing export insurance.

“Sharing outstanding examples and hearing about the challenges and overcoming processes faced by SMEs was very helpful,” said Oh Gye-dong, CEO of OZ Sepa Inc., who participated in the workshop. “POSCO INTERNATIONAL’s global network and practical experience will serve as a strong supporter in helping SMEs secure overseas competitiveness.”

“Through Trade Delegation, we are reducing the trials and errors that SMEs face overseas and increasing their chances of success by connecting them with verified partners,” remarked a POSCO INTERNATIONAL official. “We will continue to share our global network with SMEs to serve as a partner for mutual growth.”

POSCO INTERNATIONAL plans to continue operating export expansion platforms, such as Trade Delegation, and strengthen partnerships with relevant organizations, such as the Korea SMEs and Startups Agency, the Korea International Trade Association, and the Korea Foundation for Cooperation of Large & Small Businesses, Rural Affairs, to support the stable overseas expansion and growth of SMEs.

▲ Group photo of participants at the “2025 Mutual Growth Workshop: Trade Delegation Re-Connect Day”

▲ POSCO INTERNATIONAL hosts the “2025 Mutual Growth Workshop: Trade Delegation Re-Connect Day” at POSCO Tower in Songdo, Incheon

On the 18th (local time), POSCO INTERNATIONAL (CEO Lee Kye-In) signed a business agreement in Kansas City, U.S., with Bartlett and Company (hereinafter referred to as “Bartlett”), a U.S.-based grain company.

The signing ceremony was attended by POSCO INTERNATIONAL CEO Lee Kye-In, Bartlett CEO Joe Griffith, and other officials from both companies. The two companies agreed to expand grain trading to 4 million tons annually by 2027.

Under the agreement, the companies will diversify grain types and sourcing regions from mainly North America to include Central and South America as well as the Black Sea region, while also exploring joint entry into markets with high demand, such as Central and South America, the Middle East, Africa, and Asia. In particular, POSCO INTERNATIONAL seeks to strengthen its business competitiveness in sourcing and trading U.S. grains while solidifying its position as an importer in the South Korean grain market.

Its partner, Bartlett, is a U.S. grain company established in 1907. Based in the U.S. Midwest, it is engaged in the procurement, distribution, and processing of grains such as corn, wheat, and soybeans, with a strong business foundation in the U.S. domestic market and regions such as Mexico in Central and South America.

This agreement is expected to strengthen competitiveness in grain procurement amid growing uncertainties in the global agro market. With South Korea’s grain self-sufficiency rate less than 20%, the country relies on imports for at least 16 million tons of grain annually, making the diversification of supply chain increasingly important.

Since fully entering the agribusiness in 2015, POSCO INTERNATIONAL has steadily expanded its operations. In 2025, the company plans to handle 5.5 million tons of grain annually, with approximately 2 million tons to be supplied to the domestic market in South Korea.

In the grain sector, this agreement will increase importing volumes from the U.S., a major grain-producing country, while gradually boosting procurement competitiveness in South America, which has recently become the world’s largest grain exporter. Additionally, POSCO INTERNATIONAL plans to secure a global supply chain spanning North America, the Black Sea, and South America by proactively reviewing its grain business in Ukraine to enable the early restoration of terminal operations once the war ends.

In the palm oil sector, the company is operating a 30,000-hectare plantation in Indonesia and will complete construction of a palm oil refinery with an annual capacity of 500,000 tons in the second half of this year. As palm oil gains wider attention as a biofuel feedstock, the company plans to secure more plantations to establish an integrated business system covering the entire value chain, from cultivation to refined oil production.

Through these efforts, the company expects to build a stable foundation in the highly competitive global grain market and establish an annual food-handling capacity of 10-million tons by 2030, positioning itself as a global agribusiness operator. The company also expects these business expansions to contribute to national food security.

“In the face of growing uncertainties in the global agro market, strengthening our presence in grain-producing countries is essential for securing procurement and price competitiveness,” a POSCO INTERNATIONAL official stated. “Using this agreement as a foothold, we will expand our global network connecting North and South America while further developing our agribusiness foundation by leveraging existing investments, such as the Indonesia palm oil business and the Ukraine grain terminal.”

▲ POSCO INTERNATIONAL Signs Business Agreement with U.S.-Based Bartlett. From left: POSCO INTERNATIONAL CEO Lee Kye-In and Bartlett CEO Joe Griffith

Plans to expand the collaboration with public and private sectors, including the Ministry of Patriots and Veterans Affairs and the Independence Hall of Korea, to Central Asia

On the 13th, POSCO INTERNATIONAL held a ceremony at the Former Korean Provisional Government Office in Hangzhou, China to commemorate the installation of panels at the historic sites of the Korean independence movement.

Attended by Park Hyun-Yul, head of POSCO INTERNATIONAL’s China operations, Kim Jung-Hwa, consular officer for veterans affairs at the Korean Consulate General in Shanghai, and Lee Dong-Wook, head of the Shanghai branch of the Cultural Heritage Restoration Foundation, this ceremony offered a chance to review the newly installed panels and discussed the significance of the initiative.

Undertaken in collaboration with the POSCO 1% Foundation to mark the 80th anniversary of the National Liberation of Korea, this initiative seeks to improve the environment of overseas historic sites of the independence movement. POSCO INTERNATIONAL selected China as the first target, where nearly half of the 1,032 Korean independence movement sites worldwide are located, and installed 55 panels featuring POSCO Group’s high-resolution color steel plate, ‘PosART,’ at three key historic sites.

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.

The targeted sites are historically significant locations where independence activists operated during the Japanese colonization of Korea. These include the Lvshun Japan Guandong Court Former Site Museum in Dalian, where trials of independence activists such as Ahn Jung-Geun and Shin Chae-Ho were held; the Hangzhou Office, where the Korean Provisional Government was active from 1932 to 1934; and the Korean Provisional Government Historical Activity Exhibition Hall, a base for the Korean Provisional Government in 1935.

The newly installed PosART panels offer superior print quality and durability compared to existing ones. They are designed to maintain their quality for an extensive period even under China’s dynamic climate conditions, allowing visitors to better understand the history of the independence movement.

The project was led by POSCO INTERNATIONAL in collaboration with the Ministry of Patriots and Veterans Affairs, the Independence Hall, overseas diplomatic offices, the Cultural Heritage Restoration Foundation, and Godamad, a signboard manufacturing company. It serves as an example of public-private cooperation in preserving and managing overseas historic sites of Korea’s independence movement.

POSCO INTERNATIONAL keeps expanding its efforts to promote veterans’ culture abroad. Starting last year at the Old Korean Legation in Washington, D.C., the initiative has now reached China and is set to extend to Central Asia in the second half of this year. The company also plans to expand the initiative to 24 other countries with historic sites of independence movement.

“It is meaningful to contribute to improving the environment of overseas historic sites of independence movement on the 80th anniversary of the National Liberation of Korea,” A POSCO INTERNATIONAL official stated. “We will continue to collaborate with relevant domestic and international organizations to expand sustainable preservation activities for cultural heritage.”

Meanwhile, POSCO Group is undertaking various activities to promote veterans’ culture to mark the 80th anniversary of the National Liberation. During the Global Volunteer Week in May, POSCO Group executives and employees, along with local students, made traditional Korean flags using the Korean hanji paper at Ongnyong-myeon in Gwangyang, the birthplace of the March First Movement while also conducting diverse volunteer activities to reflect on the significance of the National Liberation at the Seoul National Cemetery, the Pohang Student Volunteer Corps Memorial, and the Independence Hall of Korea in Cheonan.

▲ PosART signage installed at the Hangzhou headquarters of the Provisional Government of the Republic of Korea in China.