POSCO Future M aims to up cathode materials capacity to 1mn tons by 2030

Chief Executive Officer Kim Jun-hyung announces at a vision presentation ceremony held at POSCO Center in Seoul, on Aug. 28. [Courtesy of POSCO Future M]

POSCO Future M Co., a battery materials subsidiary of South Korea’s top steelmaker POSCO, on Monday unveiled the goal to achieve 3.4 trillion won ($2.6 billion) in operating profit and 43 trillion won in sales by 2030 under a new vision to become a company that adds value to the world with environmentally-friendly future materials.

POSCO Future M held a vision presentation ceremony at POSCO Center in Gangnam, southern Seoul, in the attendance of its Chief Executive Officer Kim Jun-hyung.

The company will strive to raise 3.4 trillion won in operating profit and 43 trillion won in sales and achieve 100 trillion won in market capitalization by 2030.

POSCO Future M also plans to boost its production capacity of cathode materials to 1 million tons by 2030, up from the current 105,000 tons.

“Since March, we have completed talks with POSCO Group on the supply of raw materials such as lithium and nickel,” Kim told reporters after the ceremony. “Although we haven’t disclosed it yet, we have quite a few confirmed orders for this year. We have already completed verification, including procurement of raw materials, for the production target of 1 million tons.”

POSCO Future M also revealed its anode production target of 370,000 tons by 2030, up from the current 82,000 tons. The company plans to lead the premium market in line with the U.S. Inflation Reduction Act (IRA) by localizing supply chains in North America instead of China.

“In China, it has been difficult for Korean companies to compete with local peers as the country’s electricity prices are only one-third of those in Korea,” Kim said. “However, with the recent implementation of the IRA, we will continue to invest in artificial graphite as shipments and margins have been secured.”

Kim also said that there are many countries other than the U.S. that are seeking to remove high reliance on China and stressed the company’s strategy to compete with China in other ways to win the secondary battery cathode materials market.

Kim also noted that the company’s key competitiveness to achieving its 2030 targets lies with the ability to provide comprehensive solutions for the battery materials business, ranging from raw materials mining to materials production and recycling.

At the event, POSCO Future M also unveiled a project to build sustainable forest for the future to realize its eco-friendly vision.

Under the project, the company will plant 100,000 trees with outstanding carbon-absorbing capacities near its business sites by 2030. It is part of the company’s move to help Korea achieve carbon neutrality by 2050.