Under its new business structure covering lithium, rare earth elements, and energy resources, the group aims to achieve consolidated revenue of KRW 187 trillion and operating profit of KRW 13.1 trillion by 2035.
During its CEO Investor Day held on July 2, POSCO Group introduced its new "Triple Core" business structure, consisting of Industrial Resources (Steel), Strategic Resources (Lithium, cathode and anode materials, rare earth elements, and related businesses), and Energy Resources (LNG and renewable energy). Through this strategy, the group aims to become the "Leading Supplier of Essential Resources for the Nation."
POSCO HOLDINGS CEO Chang In Hwa emphasized that growing supply chain uncertainties and the accelerating low carbon transition require bold changes to the company's business portfolio.
"We will expand our business from steel and materials into strategic resources, taking a leading role in strengthening national industrial security and supply chains," Chang stated.
POSCO targets global top five position in lithium
Lithium operations attracted the greatest attention from investors during the event.
POSCO Group announced that it aims to reach an annual lithium production capacity of 173,000 tons by 2033 and become one of the world's top five lithium producers. The company also targets operating profit of more than KRW 1.8 trillion from its lithium business by 2035.
POSCO Argentina, which operates in the brine lithium business, reached profitability in March and recently received approval under Argentina's Large Investment Incentive Regime (RIGI). The company plans to accelerate the third and fourth phases of its expansion while increasing annual brine lithium production capacity to 100,000 tons by 2033.
In hard rock lithium, POSCO has secured an annual supply of more than 187,000 tons of lithium concentrate through its joint venture with Australia's Mineral Resources Limited. The company expects the partnership to generate stable annual revenue of approximately KRW 200 billion.
Rare earth elements and specialty gases identified as future growth drivers
The group also identified rare earth elements, which are essential for electric vehicles and robotics, together with specialty gases used in advanced industries, as key future growth businesses.
The company stated that these operations will create new revenue streams while strengthening South Korea's supply chains for future industries.
Overseas steel investments take priority
In its steel business, POSCO will prioritize overseas expansion in response to weak domestic demand.
The company aims to increase steel production capacity by 10 million tons by 2031 through investments in high growth, high profitability markets, including India, the United States, and Indonesia.
POSCO stated that returns generated from these overseas investments will be reinvested into low carbon transformation projects in South Korea.
Growth planned in LNG, renewable energy, and Physical AI
Within its energy resources business, POSCO plans to expand its LNG trading activities and strengthen its presence across the LNG value chain in response to growing global demand.
The company will also focus on offshore wind projects in South Korea and overseas solar energy investments.
In addition, POSCO plans to commercialize Physical AI solutions for process industries by utilizing operational data, plant automation technologies, and smart manufacturing expertise developed through its steel operations.
KRW 16.7 trillion investment planned over three years
POSCO Group announced that it will invest KRW 16.7 trillion between 2026 and 2028 to accelerate the transformation of its business portfolio.
The company also plans to optimize its ownership in listed subsidiaries to approximately %50 in an effort to reduce the holding company discount. Most of the proceeds will be allocated directly to strategic resource projects, while an amount equivalent to %10 of the proceeds will be used for share buybacks and share cancellations to enhance shareholder value.
Following the event in South Korea, POSCO Group announced that it will continue engaging with investors through CEO Investor Day meetings in Singapore on July 6 and Hong Kong on July 8.
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