Jeong-hu Hong, Lead Researcher Today, secondary battery materials are drawing attention as key drivers of future industries such as electric vehicles and energy storage systems. Among them, cathode materials are especially important, accounting for more than 35% of the total cost of the four major battery components—cathode, anode, electrolyte, and separator. This is because cathode materials determine not only a battery’s capacity and output but also its ability to store and release electrical energy.
At the Cathode Material Development Group, POSCO Future M Technology Research Institute, we conduct research on cathode materials, the core of EV batteries, and develop new technologies to bring them into commercial use.

Do-hyeop Park, Principal Researcher Cathode materials can be simply defined as a “source of lithium.” They are produced by combining lithium with precursors made of various metals such as cobalt, manganese, and nickel. The battery’s name, performance, and stability all depend on which metals are used. Batteries such as Lithium Cobalt Oxide (LCO), Nickel Cobalt Manganese (NCM), Lithium Iron Phosphate (LFP), and Lithium Manganese Rich (LMR), among many others using different metal combinations, are currently being developed. Our team, in particular, focuses on the development of LMR cathode materials. Recently, General Motors (GM) and Ford announced plans to launch electric vehicles using LMR batteries in 2028 and 2030, respectively, drawing significant attention to LMR in the global automotive market. Our team is fully committed to advancing LMR batteries, which are poised to become game-changers in the electric vehicle industry.

Gwang-eun Jeong, Principal Researcher Among the lithium-ion batteries currently used in electric vehicles, LFP batteries are the most widely adopted. These batteries are predominantly developed technologically by China. While these are highly stable and cost-effective, their energy density is somewhat limited. For instance, at -10°C, their performance drops to only 60–70% of full capacity. To overcome these limitations, a newly developed LMR battery has been introduced. LMR batteries significantly reduce the use of costly cobalt and nickel, while increasing the proportion of more affordable manganese. With higher energy density than LFP, they enable greater battery capacity and performance, significantly extending the driving range of electric vehicles. Moreover, unlike LFP batteries, which are difficult to recycle, LMR batteries offer superior recyclability and high lithium recovery rates.

Jeong-hu Hong, Lead Researcher The LMR battery demonstrates outstanding competitiveness not only in terms of cost and performance but also in sustainability. Of course, despite its many advantages, there are challenges that must be addressed before mass production can be realized. To prevent performance degradation, various technological advancements are required, including maintaining stable average voltages and developing surface coating techniques for cathode materials to suppress unnecessary gas generation. In China, a large-scale LFP mass production system is already in place, making a swift transition to LMR production challenging. As a result, innovative research and development are even more crucial. Our team, after an intricate R&D process, has successfully completed the development of LMR cathode materials and is now focusing on establishing techniques for mass production.

Do-hyeop Park, Principal Researcher We divided the R&D process into laboratory and pilot production stages. In the laboratory stage, we rapidly and accurately explored the basic characteristics and optimal combinations of cathode materials under specific process conditions. Through creativity and experimentation, we successfully identified the best material combinations, reducing costs while enhancing the performance of LMR cathode materials.

Ju-hyeon Yang, Principal Researcher As Do-hyeop Park mentioned, cathode production involves a calcination process, where various metal precursors such as nickel, cobalt, manganese, and aluminum are combined with lithium sources at high temperatures. During this process, we selected a variety of precursor candidates, evaluated their key physical properties, and identified the most promising materials for experimental application. By applying accumulated technical knowledge and analyzing the effects of variables throughout the development process, we successfully optimized LMR cathode materials, evaluating their initial battery capacities and lifespans. Through continuous refinement of material design, process conditions, and experimental testing, we were also able to assess the feasibility of mass production.

Jin-eun Kim, Principal Researcher This is not the end. Even if promising results are achieved in the laboratory, the performance of the developed cathode material may not be fully realized under conditions similar to those of mass production. Therefore, during the pilot stage, we adjusted loading amounts, production volumes, and sintering furnace conditions on lines that closely resemble actual mass production, repeatedly experimenting to identify the optimal production conditions.

Ji-su Kim, Principal Researcher In the laboratory stage, cathode materials can be sintered in quantities of 100 to 200 grams; however, customers occasionally request samples ranging from kilograms to tons. This means that during the pilot stage, cathode materials must be produced stably at the same performance level as those from the laboratory to allow customers to properly verify mass production feasibility. From our perspective, securing the optimal conditions for cathode material production made this stage particularly important.

Jeong-hu Hong, Lead Researcher Together with our team members, we conducted full-scale R&D to enhance the safety of the LMR process. Pilot lines require meticulous adjustment of conditions, as even slight process changes can significantly impact cathode performance. By repeatedly verifying various conditions and applying laboratory-designed firing processes to actual equipment, we achieved stable pilot production of cathodes with performance comparable to that secured in the laboratory, passing customer evaluations and finalizing the technology. Thanks to this work, we were able to secure optimal pre-mass production conditions and improve economic efficiency.

Gwang-eun Jeong, Principal Researcher I remember being quite flustered when we received a request from a customer to deliver pilot samples within just ten days. We had to simultaneously respond to the customer and optimize the material. In that situation, I decided to stay calm and divide roles among the team: I communicated with the customer to gather requirements, while Do-hyeop Park focused on optimizing experimental conditions. Thanks to everyone diligently working in their respective roles, we successfully met the customer’s requested delivery date and ensured proper material quality.

Do-hyeop Park, Principal Researcher At that time, with very little time remaining until the pilot sample delivery, it was challenging not only to produce samples but also to refine the material simultaneously. That’s when Gwang-eun Jeong, our team’s “maestro,” who perfectly coordinates our efforts, efficiently allocated roles. Thanks to this, we managed to produce the samples on time without any issues. It would have been impossible to accomplish this alone.

Jin-eun Kim, Principal Researcher There were moments during the pilot phase when performance fell short of expectations. Although the goals had been achieved in the lab, results in the pilot phase differed significantly, which was perplexing. We then collaborated to meticulously review each process step by step to identify the cause. By theoretically analyzing with Jeong-hu Hong and conducting repeated experiments with adjusted mixing times and sequences, we observed remarkable improvements in performance!

Jeong-hu Hong, Lead Researcher Currently, the global battery market’s core materials and component supply chains remain heavily concentrated in China, making the establishment of independent supply chains a critical task. Our foremost goal is to successfully commercialize LMR batteries with a stable supply chain and robust technical expertise. Moving forward, we plan to actively pursue research and development to create better batteries across multiple aspects, including enhancing material stability, securing cost competitiveness, and improving charge/discharge performance. To achieve this, I will collaborate closely with relevant departments such as production, quality, and sales. Ultimately, our team aims to join forces to successfully mass-produce LMR, a next-generation battery material, and become a future growth engine for the POSCO Group!

Achieved a self-sufficient system spanning ‘raw materials, semi-finished products, and cathode materials’ amid global policy changes

Secured POSCO Group’s supply chain for high-purity nickel sulfate, a key precursor raw material, following lithium

POSCO Future M has completed its Gwangyang precursor plant with an annual production capacity of 45,000 tons.

Through this achievement, the company has secured the in-house capability to produce precursors, a key raw materials for cathode materials, thereby strengthening its supply chain competitiveness.

POSCO Future M held the completion ceremony for its precursor plant at the Yulchon Industrial Complex in Gwangyang, Jeollanam-do Province, on the 10th.

The event was attended by approximately 70 officials, including POSCO Future M President Gi-chen Eom, POSCO Holdings Business Synergy Division Head Seong-rae Cheon, Gwangyang Mayor In-hwa Jeong, Gwangyang City Council Chairman Dae-won Choi, and Gwangyang Bay Area Free Economic Zone Authority Commissioner Chung-gon Koo.

In his commemorative address, POSCO Future M President Gi-chen Eom stated, “Following the establishment of POSCO Group’s nickel supply chain, the completion of this precursor plant has achieved a self-sufficient system spanning ‘raw materials, semi-finished products, and cathode materials.’ Amid global supply chain policy fluctuations, the Gwangyang precursor plant will contribute to strengthening the competitiveness and growth of Korea’s battery industry.”

POSCO Future M’s Gwangyang precursor plant was constructed on a total area of 22,400㎡ (approximately 6,800 pyeong) within the existing Gwangyang cathode material plant site, with an annual production capacity of 45,000 tons of precursors. This represents sufficient volume to manufacture batteries for 500,000 electric vehicles. All precursors produced here will be used for cathode material manufacturing for Ultium Cells.

A precursor is a general term for the stage before a substance becomes the desired structure; in the battery industry, it refers to the material stage before becoming cathode material. Precursors consist of nickel (Ni), cobalt (Co), manganese (Mn), and other elements, and are sent to cathode material plants where they combine with lithium (Li) to become cathode materials.

With this plant completion, POSCO Future M can now directly produce large quantities of precursors, enabling more rigorous cathode material quality control. Precursors are considered a critical factor determining cathode material performance, as their characteristics change according to raw material composition and production methods, with impurity management being crucial.

Through precursor self-sufficiency, POSCO Future M has strengthened its supply chain competitiveness even amid global policy changes. According to energy market research firm SNE Research, Korea’s dependence on Chinese imports for precursors exceeded 90% as of March this year. Using Chinese precursors means that batteries sold in the U.S. market starting this year are subject to Foreign Entity of Concern (FEOC) regulations and cannot receive IRA tax credits. While recent U.S. House tax reduction bill initiatives have created significant policy uncertainty regarding IRA tax credits, regulations on Chinese supply chains are strengthening with the addition of prohibited foreign entity requirements, making precursor supply chain independence essential.

In this context, POSCO Future M has further enhanced its supply chain competitiveness by receiving nickel, a key precursor raw material, from within the POSCO Group. Specifically, POSCO processes non-Chinese nickel raw materials into high-purity nickel sulfate, supplying it to POSCO Future M’s precursor plant. Additionally, POSCO HY Clean Metal supplies nickel sulfate recovered through recycling to POSCO Future M.

Previously, the POSCO Group achieved independence in its lithium supply chain. POSCO Future M is expected to gain advantages over competitors through stable lithium supply from POSCO Pilbara Lithium Solution using Australian ore, POSCO Lithium Solution utilizing Argentine brine, and POSCO HY Clean Metal extracting raw materials from waste batteries.

Meanwhile, POSCO Future M is actively pursuing regional job creation through expanded investment in Gwangyang. The company operates both its Gwangyang cathode material plant and precursor plant, employing approximately 700 employees. Construction is also underway on a dedicated high-nickel NCA single-crystal cathode material plant with an annual capacity of 52,500 tons on nearby land, contributing to employment creation in the local construction industry, with additional hiring planned for plant operation personnel after completion.

In the future, POSCO Future M plans to accelerate its leap toward becoming a global top-tier secondary battery materials company by further strengthening its supply chain competitiveness in response to market changes and customer demands, while concentrating its capabilities on research and development and product portfolio expansion.

▲Ceremony participants lighting a sphere representing precursors at the POSCO Future M Gwangyang precursor plant completion ceremony (from fourth from left: Gwangyang Mayor In-hwa Jeong, POSCO Future M President Gi-chen Eom, POSCO Holdings Business Synergy Division Head Seong-rae Cheon, POSCO Future M Labor-Management Council Representative Young-hwa Kim).

▲POSCO Future M President Gi-chen Eom delivering his commemorative address at the Gwangyang precursor plant completion ceremony.

As competition to develop all-solid-state battery technology has become more intense worldwide, POSCO Group is also actively researching and developing raw and key materials for all-solid-state batteries. POSCO N.EX.T Hub is where R&D is carried out. So! Announcer Hyun-jung Choi went to POSCO N.EX.T Hub Senior researcher Oh-min Kwon, an expert in all-solid-state batteries, and talked about all-solid-state batteries, which become more fascinating as you learn more about them. Anyone curious about the all-solid-state battery core material business that the POSCO Group is preparing should pay close attention. It starts right now!

What is the difference between all-solid-state batteries and lithium-ion batteries?

Do you know what type of rechargeable battery is most commonly used in electric vehicles today? It is a lithium-ion battery. Among the components of lithium-ion batteries, the electrolyte, which helps lithium ions move smoothly between the cathode and anode, is made of liquid. Since the liquid electrolyte contains a flammable organic solvent, there is a high risk of fire or explosion in high-temperature environments or external impact situations.

The separator acts as a shield that prevents direct contact between the cathode and anode, and the lithium-ion battery separators are made of polymer, which is the main material of vinyl bags that we see everywhere in our daily lives. Just as vinyl bags shrink and disappear when heated, the lithium-ion battery separator can also be damaged when heated, and it causes a short circuit* between the cathode and anode.

*Short circuit: A phenomenon in which two points in an electric circuit are connected due to poor insulation between the two points

All-solid-state batteries replace the liquid electrolytes used in conventional lithium-ion batteries with a solid electrolyte. Unlike the polymer separator of a lithium-ion battery, which is made of polymer with low rigidity, the solid separator is made of ceramics with high rigidity. Moreover, it is non-volatile and has a high flash point, so it maintains its shape well even when heated, which keeps it safe from fire.

Improved safety simplifies the heat management system, such as the external case or cooling device in the battery, so it features higher energy density in the battery pack unit. Improved energy density can significantly increase the range of electric vehicles driving on a single charge. In addition, it makes it possible to use materials such as lithium metal anodes, silicon anodes, and silver/carbon nanocomposite anodes, which were previously unusable due to high risk in lithium-ion batteries. The energy density is expected to increase by nearly 10 times compared to existing graphite anode materials. That explains why all-solid-state batteries have become the next-generation batteries for the transition from internal combustion engine vehicles to electric vehicles.

For those who cannot understand by explanation alone, Senior researcher Kwon brought all-solid-state battery samples produced by the POSCO Group and conducted a performance test. First, before we see the results! Let’s look at the specifications of POSCO Group’s all-solid-state batteries more closely.

Specifications of POSCO Group’s all-solid-state batteries

He connected the cathode and anode to a battery that looked like a thin piece of paper at first glance, made it light up, and then cut the surface of the battery with scissors. Will the light still be on even if it is cut?

Like magic, the light does not go out even when the battery is cut in half. The secret behind this is that the solid electrolyte of the all-solid-state battery, with high rigidity, acts as a separator and remains intact even with external shocks. If the inside of the battery was filled with a liquid electrolyte, the separator would have been damaged and caused the electrolyte to leak and be oxidized, and the battery would eventually stop functioning properly. That is why everyone recognizes all-solid-state batteries to be the next-generation battery leader.

So, what are the types of solid electrolytes for all-solid-state batteries? The solid electrolytes used in all-solid-state batteries are divided into three types: sulfide, polymer, and oxide. Sulfide solid electrolytes have the highest potential for commercialization in electric vehicles since their relatively soft characteristics form a wide interface between the electrode and electrolyte, resulting in high lithium-ion conductivity. Therefore, it has gained the attention of many companies worldwide.

Three key raw materials are needed to make a solid electrolyte: lithium sulfide, phosphorus pentasulfide, and lithium chloride. These three raw materials are mixed evenly to form an argyrodite (a rare mineral of silver, germanium, and sulfur) by synthesis. What is important is for the synthesis to form the appropriate solid electrolyte particle size. The solid electrolyte is completed by controlling the particle size through the crushing* and disintegration** processes.

*Crushing: The process of breaking a solid object into small pieces
**Disintegration: The process of separating clumped particles into the original individual particles

Status of POSCO Group’s all-solid-state battery material business

Did you know that POSCO Group is focusing its business on sulfide solid electrolytes to take a leading position in the all-solid-state battery market? POSCO Holdings is developing high-ion conductive materials and technology to form moisture-stable solid electrolytes. The internal testing of the prototype showed that it can achieve a battery performance equivalent to that of lithium-ion batteries.

In February 2022, it acquired a 40% equity share of Jeongkwan Co., Ltd., a display material and part specialist, to establish a joint venture called POSCO JK Solid Solutions, and completed the construction of a factor capable to producing 24 tons of sulfide-based solid electrolyte per year. The plant recently applied a new process technology and is preparing a phased expansion of the production capacity to 7,200 tons. It is currently conducting an all-solid-state battery test with various customers.

▲POSCO Group’s lithium production demonstration plant and brine storage facility in Argentina.

POSCO Group is the only Korean company that produces lithium brine, ore, hydroxide, and carbonate. Moreover, POSCO Group is actively researching and developing high-value-added lithium compounds. Since lithium compounds such as lithium sulfide and lithium chloride are essential to produce solid electrolytes, POSCO Group, which has lithium production infrastructure, is considered to have considerable competitiveness in the sulfide-based electrolyte business.

All-solid-state batteries will overcome the limitations of lithium-ion batteries, and solid electrolyte is their key material. In addition to solid electrolytes, POSCO Group also has the competitiveness to mass-produce lithium metal anode materials, which are important materials for all-solid-state batteries. With our differentiated competitiveness, we plan to leap forward as an innovative company in the rapidly changing rechargeable battery material market. If you want to know more, please watch the full version of the video on YouTube.

▼Check out POSCO Group’s solid electrolyte technology competitiveness in the video!

Planning to Establish a Lithium Production Plant with an Annual Capacity of 30,000 Tons… Evaluating Optimal Plant Sites Including Korea

Diversifying Lithium Sources Following Argentina’s Brine Lithium and Australia’s Pilbara Minerals’ Ore Lithium

POSCO Holdings has joined forces with Hancock Prospecting, an Australian mining company, to strengthen the supply chain for lithium used in Rechargeable battery materials.

▲POSCO Holdings and Australian mining company Hancock Prospecting signed a business agreement on lithium cooperation via a video conference connecting Korea and Australia. From left: POSCO Holdings’ Jun-hyung Kim, Head of Rechargeable Battery Materials; Hancock’s Daniel Wade, Business Development Manager; Hancock’s CEO Garry Korte; and POSCO Holdings’ Lee Seong-won, Head of Lithium Business Team.

On December 9, POSCO Holdings and Hancock Prospecting formalized their collaboration by signing a business agreement on lithium cooperation. The signing ceremony was conducted via video conference between Korea and Australia, with attendance from POSCO Holdings’ Jun-hyung Kim, Head of Rechargeable Battery Materials (Senior Executive Vice President), and Garry Korte, CEO of Hancock Prospecting, among other senior executives from both companies.

Under the agreement, POSCO Holdings and Hancock Prospecting will pursue a lithium business venture with an annual production capacity of 30,000 tons. The two companies will jointly evaluate optimal sites for establishing the lithium production plant, considering multiple countries, including Korea. Subsequent stages will specify detailed aspects such as investment amounts.

Through this collaboration, POSCO Holdings aims to secure an additional stable supply chain for lithium raw materials, free from regulations imposed by the Foreign Executive Order Committee (FEOC) of the United States, by leveraging Hancock’s diverse mining assets. Additionally, POSCO Holdings will enhance its lithium value chain—from lithium mining and brine extraction to lithium hydroxide production, cathode materials, and recycling—strengthening the group’s overall lithium infrastructure.

Jun-hyung Kim, Head of Rechargeable Battery Materials, stated, “POSCO Holdings has built a long-standing partnership with Hancock Prospecting based on mutual trust. In this lithium business collaboration, we will explore the optimal business framework and achieve successful outcomes.”

Hancock Prospecting, headquartered in Perth, Western Australia, specializes in mining and primarily generates revenue from iron ore operations. The company is diversifying its business into lithium, natural gas, and rare earth elements. Since 2010, POSCO Group has expanded its collaboration with Hancock Prospecting, starting with a 12.5% investment in Hancock’s Roy Hill iron ore mine. In 2022, POSCO International and Hancock jointly acquired Senex Energy, an Australian natural gas company, further broadening the scope of their partnership across the POSCO Group.

POSCO Holdings is leveraging the opportunity presented by the Rechargeable battery market’s stagnant growth to secure premium lithium resources from mines and brine sources actively. This strategic move aims to expand the resource supply chain and enhance business capabilities to capture a leading position in the lithium market as conditions improve. As of 2024, POSCO Holdings has secured a lithium production capacity of 68,000 tons annually, with the completion of facilities producing 25,000 tons of brine lithium in Argentina and 43,000 tons of ore lithium.

Prime Minister Duck-soo Han said, “This marks a pivotal turning point for POSCO Group as it strides toward becoming a global leader in the lithium industry. The government will not spare any efforts in providing full support to the sector”

Chairman In-hwa Chang said, “POSCO Group will ensure resource sovereignty not only in steel but also in rechargeable battery materials. By securing a diverse range of lithium resources, we are paving the way to become a global top-tier lithium company through a stable domestic supply”

By building a domestic supply chain for lithium hydroxide, a key material for rechargeable batteries, POSCO has made it possible to reduce delivery times and logistics costs. POSCO Pilbara Lithium Solution will provide up to 30,000 tons per year to POSCO Future M and has signed a three-year agreement with SK On for up to 15,000 tons

POSCO Group has completed a production system capable of producing 43,000 tons of lithium hydroxide annually for rechargeable batteries, localizing a key mineral essential for the rechargeable battery industry and establishing a stable supply chain.

POSCO Pilbara Lithium Solution, a subsidiary of POSCO Group, completed the construction of its second lithium hydroxide plant, based on ore, on November 29 at the Yulchon Industrial Complex in Jeollanam-do. This milestone, achieved just one year after the completion of the first plant in November last year, establishes a total lithium production system with an annual capacity of 43,000 tons. This output represents a scale sufficient to support the production of approximately 1 million electric vehicles.

POSCO Pilbara Lithium Solution, established in 2021 as a joint venture between POSCO Holdings and Australian mining company Pilbara Minerals, imports raw lithium ore from Australia to produce lithium hydroxide for rechargeable battery materials in Korea.

▲ POSCO Group completed construction of POSCO Pilbara Lithium Solution’s second lithium hydroxide plant in the Yulchon Industrial Complex in Jeollanam-do on November 29. From the left, Korea Development Bank Chairman Seog-hoon Kang, Pilbara Minerals outside director Steve Scudamore, Australian Ambassador to Korea Jeff Robinson, POSCO Group Chairman In-hwa Chang, Prime Minister Duck-soo Han, South Jeolla Province Governor Young-rok Kim , National Assemblyman Hyang-yup Kwon, and Ministry of Trade, Industry and Energy Industrial Policy Director Seung-Yeol Lee.

The completion ceremony was attended by Prime Minister Duck-soo Han, South Jeolla Province Governor Young-rok Kim, Lawmaker Hyang-yup Kwon, Director General for Industrial Policy Seung-Yeol Lee from the Ministry of Trade, Industry and Energy, Chairman of the Korea Development Bank Seog-hoon Kang, Gwangyang Mayor In-hwa Jeong, global battery company representatives, POSCO Group Chairman In-hwa Chang, POSCO Pilbara Lithium Solution CEO Kyung-seop Lee, Australian Ambassador to the Republic of Korea Jeff Robinson, and Pilbara Minerals Independent Director Steve Scudamore.

Prime Minister Duck-soo Han remarked, “The completion of this lithium plant will be a groundbreaking turning point for POSCO Group in its journey to becoming a global leader in the lithium industry. The government will spare no effort in supporting rechargeable battery companies through comprehensive measures, including infrastructure, R&D, taxation, financing, and more.”

Australian Ambassador to the Republic of Korea Jeff Robinson said, “The comprehensive completion of POSCO Group’s lithium plant is a testament to the trust and collaboration built between Korea and Australia over many years. It is a significant milestone for both nations in the joint development of the rechargeable battery material industry.”

Chairman In-hwa Chang stated, “Amid changes in the global regulatory environment, POSCO Group has ensured a stable domestic supply of lithium, a key mineral for rechargeable battery materials, thereby opening the path to material sovereignty. Building on its leadership in steel, the group has also contributed to national prosperity in the rechargeable battery materials sector and will grow into a leading global lithium company in the future.”

In 2018, POSCO Holdings proactively acquired a 4.75% stake in Pilbara Minerals and signed a 20-year contract for the stable supply of lithium ore mined from Pilbara Minerals’ Pilgangoora mine. This measure secures a reliable raw material supply chain. Additionally, the two companies strengthened their long-term partnership by investing in POSCO Pilbara Lithium Solution, with POSCO Holdings holding an 82% stake and Pilbara Minerals owning 18%.

POSCO Pilbara Lithium Solution applied two distinct lithium extraction technologies to its plants: the first plant, completed in November last year, uses a proprietary lithium extraction technology developed by POSCO Group, while the second plant uses a commercially proven technology operated by other global companies. POSCO Group’s proprietary lithium extraction method, based on the principle of electrodialysis, offers advantages such as the recovery and reuse of byproducts during production and minimal byproduct generation. In contrast, the commercial extraction technology is universally used by leading lithium producers in Australia, China, and other countries, providing proven reliability. By operating both plants, POSCO Group aims to strengthen its technical foundation to flexibly expand its business in response to future changes in the business environment.

Moreover, the lithium hydroxide produced by POSCO Pilbara Lithium Solution is processed entirely within free trade agreement (FTA) member countries, as it uses Australian raw materials and is refined in Korea, making it free from geopolitical risks. Unaffected by changes in the regulatory environment for raw materials used in rechargeable batteries in countries such as the U.S. and the EU, it is easy to explore both domestic and international markets, leading to the successful securing of supply contracts from the early stages of operation.

POSCO Pilbara Lithium Solution plans to supply 20,000 tons of lithium hydroxide annually to POSCO Future M, the Group’s cathode material producer, starting from this amount and increasing it to a maximum of 30,000 tons in the future. On November 22, POSCO Pilbara Lithium Solution signed its first long-term contract with SK On to supply up to 15,000 tons over three years. In the future, POSCO Group aims to leverage business advantages such as shorter delivery times and reduced logistics costs from domestic lithium hydroxide production to expand its customer base both domestically and internationally.

By combining the 25,000 tons of lithium hydroxide from the first phase of its brine lithium plant in Argentina, completed earlier this year, with the 43,000 tons from its newly completed ore-based lithium plants, POSCO Group has established an annual production capacity of 68,000 tons, further strengthening its raw material capabilities for the rechargeable battery industry. Additionally, the Group is accelerating efforts to lead in next-generation materials and other innovative technologies.

The trends in POSCO Group’s flagship business area are explained by experts in an easy-to-understand manner. In Part 4, we review the issue concerning “all-solid-state batteries,” which are expected to be next-generation batteries, with Principal Researcher Jae-beom Park at the POSCO Research Institute.

Batteries are mainly divided into primary and rechargeable batteries. Primary batteries, including dry cells and mercury batteries, cannot be recharged after use. On the other hand, rechargeable batteries can be recharged and used multiple times, so they are more environmentally friendly and economically efficient. There are many types of batteries, but the most commonly used rechargeable battery is the lithium-ion battery (LIB).

Compared to other rechargeable batteries, lithium-ion batteries are used in various applications that take advantage of their superior features in all aspects, including lifespan, ease of charging, discharge rate, and costs. In particular, they are widely used in electric vehicles and mobility devices that require long operating range on a single charge due to their high energy density.

However, even LIB, which is considered the most ideal commercial rechargeable battery to date, requires continuous improvement and supplementation in terms of energy density, price, and stability. To understand why, it is necessary to look at how LIB works.

The four core components of an LIB are cathode material, anode material, electrolyte, and separator. Among them, the electrolyte acts as an important medium that helps lithium ions move smoothly between the anode and cathode materials. Since one of the main components of the electrolyte is a flammable organic solvent, there is a risk of fire or explosion in high-temperature environments or external impact situations. To solve this problem, the performance of materials such as anode and cathode materials or electrolytes can be improved, but the ultimate solution is to change the battery type. Post-LIB or next-generation batteries, such as all-solid-state batteries, lithium-sulfur batteries, and sodium-ion batteries, have emerged as solutions, and all-solid-state batteries, which are called dream batteries for dramatically improved energy density and stability, have recently received the spotlight worldwide.

The biggest difference between all-solid-state and lithium-ion batteries is the form of the electrolyte. An all-solid-state battery replaces liquid electrolyte in an LIB with a solid powder. The replacement not only changes the shape but also other LIB materials significantly. It eliminates a separator that prevents direct contact between the anode and cathode during the movement of lithium ions, as the solid electrolyte acts as a separator.

Stability

All-solid-state batteries have many advantages, and stability is the leading example. Since the electrolytes in LIBs are made of flammable organic solvents (liquid), there is a high risk of fire or explosion when the separator that blocks contact between the anode and cathode materials melts due to heat or is damaged for various reasons. However, the solid electrolyte of an all-solid-state battery acts as a separator and more effectively blocks contact between the anode and cathode materials. Therefore, it reduces the risk of fire or explosion. Moreover, the risk of leakage or oxidation due to temperature change or external impact is lower. This means reduced maintenance costs due to excellent ease of use and durability.

Higher energy density

Improved safety helps simplify battery external cases and cooling devices and naturally achieves higher energy density. If the cooling system components can be minimized, the remaining space can be used for battery cells. It will allow improved energy density per battery pack. Moreover, lithium, which has the largest energy capacity among the candidates as an anode material, can theoretically increase the energy density by up to nearly 10 times compared to conventional graphite-based anode materials. Therefore, if we can solve the safety problem of the lithium metal anode material, which is called the ultimate, next-generation anode material, and commercialize it, we can expect to dramatically improve energy density.

Coping with temperature change better

Another big advantage of changing liquid electrolytes to solids is their lower sensitivity to temperature, which allows them to operate over a wider range of temperatures. Conventional lithium-ion batteries mainly operate smoothly between -10°C and 40°C because the ion conductivity* decreases significantly at low temperatures below -10°C, and the risk of thermal runaway increases at high temperatures. On the other hand, all-solid-state batteries operate without problems in a wide temperature range of -40°C to 100°C. Therefore, they can improve the risk of battery discharge in winter or fire caused by high temperatures and can also significantly reduce the need for cooling devices to dissipate heat.
*Ionic conductivity: The degree to which ions contribute to equivalent electrical conductivity in an infinite dilution state

Simplified processes and cost reduction

While conventional lithium-ion batteries have a monopolar structure in which a cell has one electrode, all-solid-state batteries can be converted into a bipolar structure in which multiple electrodes are connected in series in a cell. The bipolar structure increases the voltage of the battery by stacking multiple electrodes in a cell, thus increasing the output. Moreover, we simplify processes, increase space utilization, and reduce costs by minimizing the BMS* for external material cooling systems.

*Battery Management System (BMS): A system that monitors the battery status and controls it to maintain the optimal conditions for use

Solid electrolytes used in all-solid-state batteries are largely divided into organic and inorganic types. The sulfide-based type is most likely to be commercialized for electric vehicles, and has attracted the attention of many companies. Sulfide-based materials are relatively soft and form a wide interface* between the electrode and electrolyte, resulting in high lithium ion conductivity.

Various structures depend on the presence of a crystalline structure, even within sulfide-based materials. In particular, solid electrolytes with a structure of LGPS (Li₁₀GeP₂S₁₂) or argyrodite (Li₆PS₅CL), a rare sulfide mineral containing germanium, are known to be able to implement ionic conductivities similar to or higher than the ionic conductivities of general liquid electrolytes (5–10 mS/cm).

*Interface: The boundary between two spatial regions occupied by different substances or physical states of matter

※ Ionic conductivity : LGPS (Li₁₀GeP₂S₁₂) 12~25mS/cm, Argyrodite(Li₆PS₅CL) 2~12mS/cm

Many companies are actively conducting R&D to create a more perfect all-solid-state battery. While it varies by company, ternary cathode materials* are likely to be the most active cathode material. For anode materials, a transition has occurred from the commonly used graphite-based materials to silicon-based materials, and eventually to lithium metal anodes, which offer higher energy density per volume and weight. Therefore, the material composition of an all-solid-state battery with high commercialization potential is the ternary cathode-sulfide solid electrolyte-lithium metal anode.

*Ternary cathode material: A cathode material in which other elements are added to lithium cobalt oxide (LCO), which is mainly used as a cathode material, for a total of three elements. It is divided into nickel-cobalt-manganese (NCM) and nickel-cobalt-aluminum (NCA).

Leading companies have already announced plans to commercialize all-solid-state batteries by 2027, and they plan to mass produce them by 2030 at the latest. The fact that the original patent related to the composition of sulfide-based argyrodite solid electrolyte, which is considered to have the most commercialization potential, will expire in 2028 is also expected to affect the timing of commercialization.

The University of Siegen in Germany filed a PCT patent application for a sulfide-based source patent in 2008. The patent was later transferred to another company, which now holds the intellectual property rights. When the patent expires in 2028, 20 years from the date of application, many companies are likely to begin mass production of solid electrolytes.

Some companies are also preparing semi-solid-state batteries. Semi-solid-state batteries use gel-type electrolytes that are an intermediate form between liquid and solid. They are being developed to complement the shortcomings of liquid and solid electrolytes and leverage their advantages. Since they can utilize most of the processes of conventional lithium-ion batteries, the technology can be considered a stepping stone before the full-scale transition to all-solid-state batteries.

In addition to technical issues to overcome, such as low ion conductivity and high interface resistance, other important challenges include securing mass production and price competitiveness similar to that of lithium-ion batteries.

The price of the solid electrolyte for all-solid-state batteries is USD 1000/kWh, and excluding other materials, the price significantly exceeds the current price of lithium-ion batteries. This is because lithium sulfide, the core of solid electrolytes, is currently manufactured in labs and pilot lines, and the economy of scale, where the average prices drop as production increases, has yet to be realized.

However, the hope is that, except for some electrolytes that contain rare earth elements such as germanium, the raw material price of general solid electrolytes is around USD 10/kg. In other words, if the production volume can be increased with improved processes, the market price is expected to drop to USD 30/kWh. Reducing the price of solid electrolytes and lithium sulfide and overcoming technical issues are important prerequisites for popularizing all-solid-state batteries.

To secure competitiveness in the solid electrolyte business, a key material for all-solid-state batteries, POSCO Group took a 40% stake in Jeongkwan Co., a display materials and parts company, established POSCO JK Solid Solutions as a joint venture in February 2022, and completed the construction of a product plant capable of mass producing 24 tons of sulfide-based electrolytes per year. POSCO JK Solid Solutions is currently preparing for a gradual expansion to eventually increase production volume to 7,200 tons and is conducting tests on all-solid-state battery products with key customers.

Overseas, POSCO invested equity in ProLogium Technology, an all-solid-state battery manufacturer established in Taiwan in 2006, and has expanded the supply chain for all-solid-state battery materials after signing a joint research agreement. Moreover, it is considering various business plans to secure the supply chain for lithium sulfide (Li2S), a key raw material for sulfide-based solid electrolytes.

POSCO Group also has the competitiveness to mass-produce lithium metal cathode materials, which are as important as solid electrolytes in all-solid-state batteries. Since it owns a salt lake in Argentina with high purity and low impurities, it has the advantage of increasing the purity and removing impurities using lithium as an anode material. POSCO is recognized as having the world’s top level technology for lithium purification.

Lithium metal manufacturing requires an ultra-thin and wide production process to economically apply to rechargeable batteries for electric vehicles. The roll-to-roll process, POSCO’s original technology accumulated through rolling and plating processes, is ideal for making the lithium anode ultra-thin and wide. To secure differentiated competitiveness, POSCO plans to apply the process to lithium metal production. It is currently providing samples and conducting tests of lithium metal products using the electroplating method.

POSCO Group is building a full lineup by concentrating its differentiated technologies to secure competitiveness in raw materials for all-solid-state batteries, considered representative next-generation batteries. It plans to continue its efforts to create new added value by responding to the changing global market environment.

Yoo Byeong-og, President of POSCO Future M, stated, “POSCO Future M is the sole alternative for stabilizing the U.S. anode material supply chain” and advocated for the consistent implementation of U.S. government policies.

Philip Goldberg emphasized, “It is crucial to establish a supply chain that does not rely on any single country.”

On the 7th, Philip Goldberg, U.S. Ambassador to South Korea, visited Pohang’s POSCO Future M’s synthetic graphite anode material plant.

Ambassador Goldberg, who has shown a keen interest in stabilizing the U.S. battery supply chain, visited POSCO Future M to directly inspect the production site of anode materials, a critical component in the battery supply chain.

POSCO Future M is the only domestic company that produces both cathode and anode materials, positioning it as a key partner in establishing a stable supply chain for the U.S. battery industry. Specifically, regarding anode materials, POSCO Future M is the only non-Chinese company among the top ten global market shareholders in the first quarter of 2024, according to market research firm SNE Research.

Synthetic graphite anode materials offer advantages over natural graphite anodes by extending battery life and reducing charging times, thereby sustaining demand as the electric vehicle market expands. POSCO Future M manufactures synthetic graphite anode materials using tar, a byproduct of steelmaking, ensuring reliable domestic sourcing of raw materials and enhancing supply chain stability compared to natural graphite anodes.

POSCO Future M has a total anode material production capacity of over 80,000 tons, including synthetic graphite anodes. However, the company faces challenges due to decreased operating rates and profitability as competitor countries have strategically reduced anode material prices. Consequently, there is increasing demand from global battery and automaker companies, as well as governments worldwide, for support and collaborative efforts to establish a stable global supply chain for anode materials.

During the meeting, Yoo Byeong-og, President of POSCO Future M, stated, “POSCO Future M is the only alternative for stabilizing the U.S. anode material supply chain; however, we are encountering practical difficulties due to the two-year deferment of FEOC. We urge the U.S. government to implement consistent policy to stabilize the supply chain.”

Ambassador Goldberg remarked, “It is important to build a supply chain that does not depend on any single country and is resilient against unfair trade practices.”

This visit marks not the first interaction between U.S. authorities and POSCO Future M. In February, Jose Fernandez, U.S. Deputy Assistant Secretary for Economic Growth, Energy, and the Environment, visited POSCO Future M’s Seoul office for the Korea-U.S. Senior Economic Dialogue (SED). During this meeting, POSCO Future M introduced its ongoing anode and cathode material projects and raw material investment initiatives aligned with U.S. supply chain stabilization policies. Subsequently, Ambassador Fernandez shared on his social media, “Met with POSCO Future M to discuss cooperation on electric vehicle battery and critical mineral supply chains and partnerships for a clean future.”

▲On the 7th, U.S. Ambassador to South Korea Philip Goldberg (left) and POSCO Future M President Yoo Byeong-og (center) listen to an explanation of the anode material manufacturing process at the Pohang synthetic graphite anode material plant.

▲On the 7th, POSCO Future M President Yoo Byeong-og (left) and U.S. Ambassador Philip Goldberg (center) tour the production line at the Pohang synthetic graphite anode material plant.

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.

POSCO Group does its best to develop technologies that contribute to safety and carbon neutrality. We introduce POSCO Group’s excellent new technologies to create a better world! In this episode, we will learn about POSCO Future M’s localized technology for artificial graphite anode materials.

Graphite, which is familiar from pencil lead, is widely used in various industrial applications including refractories in converters that must withstand high temperatures. It is also a core anode material that determines the lifespan and charging performance of lithium-ion batteries for electric vehicles.

POSCO Future M is the only company in Korea that produces both anode and anode materials, which are core materials for secondary batteries. While the company was producing natural graphite anode materials made from natural graphite, it developed the technology to produce artificial graphite anode materials. POSCO Future M’s artificial graphite anode manufacturing technology processes needle coke, a raw material, at a high temperature of over 3,000 ℃ to produce anode material. It was the first Korean company to develop and commercialize artificial graphite anode production technology, which has increased the competitiveness of the domestic secondary battery industry. Why did the company develop technology for localizing artificial graphite, and what has the technology development changed?

POSCO Future M entered the anode material business after realizing that coal tar, a byproduct of the steelmaking process, can be used to produce anode materials. With continuous technology development, it became the only Korean company to produce natural graphite anode materials in 2011.

As orders increased from domestic companies that had imported anode materials from overseas, POSCO Future M increased its natural graphite anode material production capacity and expanded its product portfolio to include artificial graphite anode materials. Although artificial graphite anode materials are favored in the market for their long battery life and high-speed charging, commercialization is difficult because of high raw material costs. Until then, no companies produced them domestically, so only imports were available. When POSCO Future M succeeded in developing artificial graphite anode material first in June 2014, the use of this material increased as the electric vehicle market rapidly grew, and the company decided that it was the right time to produce artificial graphite anode materials and accelerated technological development proactively in response.

Manufacturing cost reduction and real-time quality management by introducing smart factory processes

Artificial graphite requires long and complex processes compared to natural graphite, and it is relatively difficult to control quality during production. POSCO Future M completely internalized all processes and introduced smart factory processes to reduce manufacturing costs and maintain customer trust through real-time quality control.

Let’s take a closer look at the production process of artificial graphite anode materials. The raw material for artificial graphite anode material is needle cokes, made by processing coal tar, a byproduct in the steelmaking process. There is a pulverizing process to adjust the size of needle coke particles, a granulation process of mixing needle coke and pitch during the pulverizing process, and a preliminary carbonization process of carbonizing the raw material before graphitization to increase productivity. Afterward, the raw material is thermally treated at 3000 ℃ or higher to convert it into artificial graphite, and the artificial graphite surface is coated evenly with pitch. Then, after post-processing, such as de-iron, the product is packed, which completes the production of artificial graphite anode materials in Korea.

Graphitization, which heat treats needle coke, the raw material, at a high temperature of 3,000 ℃ or higher is the core process and the most important technology that determines the quality and performance of the anode. It is very important to optimize the process conditions according to the raw material type and amount, and POSCO Future M has proprietary graphitization process technology for this.

The artificial graphite anode materials manufactured by POSCO Future M have the advantages of a longer battery lifespan due to their high structural stability and low impurity content and decreased fast charging time due to quicker lithium ion movement speed because of their isotropic structure.

Operational competitiveness is secured with a self-designed graphitization process

The graphitization process involves mixing raw materials in a crucible, placing them in a graphitization furnace, and heat-treating them at 3,000 ℃ or higher to produce graphite. Generally, when crucibles are put into and discharged from a graphitization furnace, people go directly into the furnace and perform various manual tasks, such as connecting the crane.
POSCO Future M designed the graphitization process automation system considering operator safety. Raw materials are transferred through a pipeline with strong air pressure, and robots put raw materials into crucibles and place them in the graphitization furnace. After being heat-treated at 3,000 ℃ or higher, artificial graphite is transferred through the pipeline to post-processes such as coating.

Value chain synergy effect to increase the resource circulation rate

Needle coke, the raw material for artificial graphite anode materials, is supplied by POSCO Future M’s subsidiary POSCO MC Materials. POSCO MC Materials produces needle coke by drying coal tar, a byproduct of coke manufacturing in the steelmaking process, at a high temperature. The localization of artificial graphite production technology has enabled POSCO to secure the steelmaking byproduct market and POSCO Future M to stably secure the raw material. It helps resource circulation and leads to the synergy effect of POSCO Group’s value chain.

Goal of increasing anode material production capacity

POSCO Future M plans to increase the annual anode material production capacity from 82,000 tons currently to 370,000 tons by 2030. Its goal is to maintain its No. 1 position in the global market outside China by having an annual production capacity of 182,000 tons of natural graphite anode materials, 153,000 tons of artificial graphite anode materials, and 35,000 tons of silicon anode materials by 2030.

First export of artificial graphite anode materials after localization

In December 2022, POSCO Future M signed a contract with Ultium Cells, a battery joint venture between U.S. GM and LG Energy Solutions, to supply artificial graphite anode materials worth approximately KRW 939.9 billion. The supply period is 6 years from 2023 to 2028. It is the first export of artificial graphite anode materials following localization. PSOCO Future M plans to secure its leadership in the artificial graphite anode material market by preemptively responding to increasing global demand, including expanding the supply chain in the battery industry following the enactment of the U.S. Inflation Reduction Act.

POSCO Future M is ready to fly higher with the localization of key battery materials!
Please follow us as we continue to pioneer the artificial graphite anode material market!

POSCO Holdings held the third Value Day of POSCO Group’s Rechargeable Battery Material Business at the POSCO Center on July 12 to introduce the strategic direction for improving the group’s corporate value, including the retirement of treasury stocks worth approximately KRW 2 trillion and the strategy for upgrading the rechargeable battery material business. We will visit the Value Day event, which excited the participants with the goal of increasing corporate value with a strong shareholder return policy and achieving group sales of KRW 11 trillion in the rechargeable battery materials business by 2026.

POSCO Group to open the door for communication with stakeholders

The annual Value Day of POSCO Group’s Rechargeable Battery Material Business is part of an IR campaign where management directly explains and communicates the business vision and strategy to investors and security industry analysts. The event has been well received since its inception, as it goes beyond a simple presentation of information and reinforces mutual trust through direct communication with investors.

▲About 200 domestic and international investors and analysts attended the ‘3rd POSCO Group Rechargeable Battery Materials Business Value Day’ held on July 12.

In its third anniversary this year, the Value Day was attended by POSCO Holdings’ head of strategic planning CSO, CEO, and President Jeong Gi-seop, head of Rechargeable Battery Materials Vice President Kim Jun-hyeong, and the head of LiB Materials R&D Laboratories Hong Yeong-jun, and about 200 domestic and foreign institutional investors and security analysts visited the event. Despite the poor rechargeable battery materials business this year due to unfavorable market conditions, the excitement at the event venue was as high as last year when business was booming.

The event was organized into two parts: presentations by executives on topics such as POSCO Group’s new management vision, strategic direction for improving corporate value, and strategy to upgrade the rechargeable battery materials business in a downturn situation in Part 1 and a Q&A session where the participants and business managers directly asked and answered questions in Part 2.

▲Jeong Gi-seop, Head of Strategy Planning (CEO and President), is announcing the ‘Strategy Direction for Enhancing Corporate Value.’

The first part included a welcoming speech by CEO and President Jeong Gi-seop, followed by a presentation on POSCO Group’s strategy for its rechargeable battery materials business and technology strategy for next-generation battery materials. “POSCO Group has achieved remarkable results in the steel industry,” CEO Jeong said in his speech, adding, “We will not be satisfied with this achievement but will focus the group’s resources and capabilities on the rechargeable battery material business along with steel.” He went on to say, “We will continue a strong shareholder return policy, including growth investment and restructuring of low-yield assets as well as the retirement of all treasury stocks excluding convertible bond deposits over the next three years to improve capital efficiency.”

▲Attendees of the 3rd POSCO Group Rechargeable Battery Materials Business Value Day applaud after hearing the welcoming speech.

In the steel business sector, POSCO Group plans to prepare a global growth roadmap centered on the upstream process in India and the United States and improve asset management efficiency by restructuring low-return assets. Moreover, POSCO Group declared its goal to proactively use the downturn period to ensure competitiveness by procuring outstanding resources, dominating the next-generation battery materials market, and growing into a global top-tier materials company.

“We have finalized 120 restructuring plans, including those that do not match our strategy, low-profit businesses, and unused assets to improve capital efficiency,” CEO Jeong Gi-seop said. POSCO Group expects to raise approximately KRW 2.6 trillion in cash by quickly implementing more than 97% of its restructuring targets by 2026 and plans to use the cash to reinvest in core businesses for growth and return to shareholders.

POSCO Holdings also plans to continue its shareholder return policy. Of the 10% of treasury stocks it currently holds, it plans to retire 6%, worth about KRW 1.9 trillion, excluding the 4% mandatory deposit required for the issuance of convertible bonds, by 2026. In addition, the Board of Directors decided to purchase and retire KRW 100 billion worth of treasury stocks immediately. Moreover, to increase shareholder value in the future, POSCO Holdings announced a basic policy of immediately retiring all newly acquired treasury stocks except for use by employees and promised to repay the support of shareholders.

Lastly, CEO Jeong said, “We will increase corporate value by improving capital efficiency through growth investment, adjustment of low-performing assets, and strengthening shareholder returns,” and added, “We ask for your interest and encouragement in POSCO Holdings’ efforts to grow into a top-tier company.”

Vice President Kim Jun-hyeong of POSCO Holdings’ Rechargeable Battery Materials Business took the podium next and presented the company’s “strategy to advance the rechargeable battery materials business.” “The EV market is in the middle of a downturn period and is experiencing a slowdown in growth rate,” VP Kim said and explained the market situations in major countries. He added, “To break through the slump, POSCO Group will achieve group sales of approximately KRW 11 trillion in the rechargeable battery materials business by 2026 by completing the full value chain, strengthening business competitiveness, and dominating the next-generation battery materials market.”

This is the first year for POSCO Group to operate the full-scale rechargeable battery material supply system, and the company plans to provide customized integrated solutions to each customer by completing the full value chain. Moreover, it will apply its know-how of being No. 1 in global competitiveness in the steel business to the rechargeable battery materials business to improve its operational and competitiveness and accelerate growth by creating synergy through industry-academia-research cooperation with POSCO Future M, POSTECH, and POSCO N.EX.T Hub.

VP Kim also announced the strategy to “strengthen our business competitiveness and use the current downturn period as an opportunity to secure outstanding lithium resources such as salt lakes and mines and produce IRA-qualified nickel products with smelting and refining in Korea.” POSCO Group plans to secure a stable customer base, diversify its product portfolio in the cathode materials sector, and strengthen its full lineup of anode materials, including natural and artificial graphite and silicon, as the world’s only IRA-qualified, non-FEOC (Foreign Entity of Concern) producer in the anode materials sector. Moreover, to dominate the next-generation materials market, POSCO Group plans to supply all three core components of all-solid-state batteries, anode materials, solid electrolytes, and lithium metal anode materials, in conjunction with the customers’ all-solid-state battery commercialization plans, he added.

▲Hong Yeong-jun, head of POSCO Holdings’ LiB Material R&D Laboratories (Vice President), is presenting trends at major customers and strategies to lower the cost of raw materials for battery materials.

Next, Hong Yeong-jun, head of POSCO Holdings’ LiB Materials R&D Laboratories, presented the current status of global rechargeable battery materials and next-generation battery development by automobile companies and the technology strategy for next-generation battery materials that POSCO Group is paying attention to. He began by identifying major customer trends during the downturn period and explained the strategy for lowering the prices of raw materials for battery materials by recycling. The participants were particularly focused on the presentation since the prices of raw materials for battery materials are a key competitiveness factor in the eco-friendly vehicle market. Some attendees showed high interest and expectations in the raw material cost reduction strategy by taking screenshots and notes of the presentation.

“We can expect a 3% cost reduction by additionally recalling lithium in byproducts and improving the proprietary process in lithium-conventional resources and direct lithium extraction (DLE) productivity by 15% in the short term and 130% in the mid to long term with the application of the technology to selectively absorb only lithium in lithium-non-conventional resources,” VP Hong said, and added, “We plan to commercialize all-solid-state batteries required in the future automobile market, focusing on sulfide-based batteries, by 2027. We will secure unique patents with advanced analysis and all-solid-state material mixing technology and strengthen our global competitiveness through joint development with major automobile and battery companies.”

Vice President Kim Jun-hyeong, head of POSCO Holdings’ Rechargeable Battery Materials Business; Vice President Hong Yeong-jun, head of POSCO Holdings’ LiB Materials R&D Laboratories; Lee Seong-won, head of Lithium Business, Lee Jae-yeong, head of Ni&Next-generation Business, and Hong Jeong-jin, head of the Energy and Materials Strategy Office, led the Q&A session with investors and analysts in Part 2. Han Yeong-a, the session moderator and managing director of the IR Team at POSCO Holdings, was kept busy with many participants raising their hands at the same time to ask questions. They asked various business-related questions, such as the lithium price forecast, sales contract forms and conditions, the commercialization of all-solid-state batteries, and the competitiveness of IRA-qualified nickel supply.

An analyst at Hana Securities asked about difficulties in preparing to secure unique patents related to the all-solid-state technology announced by VP Hong Yeong-jun. “It is true that there is a shortage of source-level patents in the global market. Although it will not be easy to surpass the patents of existing competitors, we should be able to acquire source-level patents and become globally competitive by considering other approaches,” VP Hong answered.

There were also questions about the mid- to long-term lithium price outlook, reflecting the current poor market conditions. “Some projects have been canceled as prices fall due to excess lithium supply. When the demand keeps increasing, the supply-demand balance will ultimately change. It is too early to tell, but we cautiously expect the price to rebound by 2028.”

The Q&A session ended well past the scheduled time due to continued questions from the participants. It confirmed that investors are very interested in the strategy and direction of POSCO Group’s rechargeable battery materials business. “It was very helpful to see POSCO’s core strategy and future vision to overcome difficult market conditions,” an analyst who attended Value Day said.

Q What is the goal of this year’s Value Day of POSCO Group’s Rechargeable Battery Material Business? The growth of the electric vehicle market has slowed, and rechargeable battery-related stocks are undergoing a significant correction. We had many concerns about holding Value Day in these difficult times, but we thought that keeping our promise to investors was the highest priority, so we did our best to prepare for the event again this year. Contrary to our worries, many people attended and we saw excitement from investors. Our goal was to inform and communicate with investors about the strategies that POSCO Group will use to overcome this difficult slump situation, and I am glad that the goal was achieved. Q What did you focus on in your preparation for this year compared to last year’s event? Last year, most plants were under construction, while this year, many have been completed and are in operation. We focused our preparation on what our investors were curious about, such as the production status after the completion of construction, the vision of the newly appointed POSCO Group management, and the growth strategy for the steel and rechargeable battery materials businesses. Although the market situation is difficult, it was an opportunity to answer questions about POSCO Group’s direction. Q How do you feel about successfully hosting this year’s event? The event’s Q&A session lasted for more than an hour, and the conversation was quite intensive as the top management directly answered the questions of investors and analysts. We tried to communicate POSCO’s strategy and vision honestly regardless of the market situation, and many investors supported us in the effort. Since POSCO Group’s Value Day is almost the only event in Korea for communicating directly with investors regarding the rechargeable battery materials business, we will continue to communicate closely with investors to increase corporate value. Q What are your impressions of attending the third Value Day for POSCO Group’s Rechargeable Battery Materials Business? POSCO Group held an event to share its strategic direction with investors as always, even though the steel and rechargeable battery market is sluggish this year compared to last year. The introduction of the business status and future strategy was impressive. It was a glimpse of the management’s commitment to responding calmly to the sluggish market conditions compared to last year and using this year’s difficulties as an opportunity to strengthen the rechargeable battery materials business. Q Please briefly evaluate the strategy for the rechargeable battery material business direction presented at this event. To summarize the strategic direction for the rechargeable battery materials business as presented by POSCO Group at this event, it will use the current downturn as an opportunity to improve the company’s competitiveness and strengthen the choice and focus by distinguishing areas that require restructuring and growth throughout the company. POSCO Group has spent considerable time and effort in improving corporate value by balancing investment and shareholder return while maintaining the stability of its financial structure. Q What is your forecast for POSCO Group’s rechargeable battery materials business? The POSCO Group’s challenge in the rechargeable battery materials business is to create profits as the construction of the lithium and nickel refining plants nears completion. Profitability inevitably depends on market status, but we evaluate the competitiveness by checking the level of profitability it can generate compared to its competitors. It is a difficult situation, but it is expected that POSCO Holdings’ low net debt ratio, the full value chain of rechargeable battery materials formed throughout the group, and continuous efforts to improve competitiveness will pay off.

Despite the difficult market situation, the third Value Day for POSCO Group’s Rechargeable Battery Materials business received great interest and support from many stakeholders. POSCO Group plans to further strengthen its business competitiveness to achieve the highest global corporate value in the materials sector by 2030.

We would like your support for POSCO Group’s actions as we grow into a global top-tier company in the rechargeable battery materials business by approaching the difficult downturn situation as a new opportunity.