POSCO Holdings

POSCO Holdings Inc., through its subsidiary POSCO Future M, has reached a large-scale, long-term supply agreement with a major South Korean battery manufacturer to supply more than 190,000 metric tons of LFP cathode materials over six years from 2027 through 2032, with a formal contract expected in the third quarter of 2026. The agreement marks POSCO's first major LFP cathode-material order and diversifies its battery-materials portfolio beyond high-nickel cathode materials, targeting rising demand for LFP-based energy storage systems in North America driven by AI data centers and utilities. To support the new business, POSCO has converted part of its Pohang facility's existing high-nickel cathode production lines to LFP production, with mass production and supply targeted to begin by the end of 2026, and plans to improve cost competitiveness by using iron oxide from its steelmaking operations and lithium from salt lakes in Argentina. The company is also pursuing additional cathode and anode material supply agreements, and in March secured a long-term contract worth approximately KRW 1 trillion with a global automaker for synthetic graphite anode materials, while investing about KRW 357 billion in a new plant in Vietnam. Separately, CNP New Material Technology, a joint venture between POSCO and FINO-CNGR, began construction of an LFP cathode-material plant in Pohang in May, with mass production expected in 2027 and capacity planned to expand in phases to as much as 50,000 tons annually.

The global iron and steel casting market is projected to grow from USD 185.79 billion in 2025 to USD 320.07 billion by 2035, at a compound annual growth rate of 5.59%, according to a new report by Custom Market Insights. The market is expected to reach USD 196.17 billion in 2026. Growth is driven by rising demand for durable, cost-effective metal components in automotive, construction, machinery, and infrastructure sectors, along with technological advancements in casting processes. Gray iron castings held the largest product segment share in 2025, while North America and Asia Pacific are identified as key growth regions. The report covers segmentation by material type, casting process, application, end use, and region, and profiles major players including ArcelorMittal, POSCO, and Nucor Corporation.

POSCO Holdings and Anson Resources have signed a definitive agreement to build and operate a Direct Lithium Extraction demonstration plant at the Green River Lithium Project in Utah. POSCO will fully fund and lead the design, construction, operation, and maintenance of the facility to validate its proprietary DLE technology on a continuous industrial scale, using brine supplied by Anson. As part of the deal, POSCO will pay Anson a facilitation fee of approximately $5.2 million. The demonstration plant is expected to begin operations in 2027 and conclude in 2028, with the agreement also providing a framework for potential future commercial collaboration and joint investment in the project.

POSCO Holdings has unveiled a long-term growth strategy to expand beyond steel into lithium, strategic minerals, and energy, aiming to become a leading supplier of industrial resources. At its CEO Investor Day, the company targeted consolidated revenues of KRW 187 trillion and operating profit of KRW 13.1 trillion by 2035. Lithium is the centerpiece, with plans to increase annual production capacity to 173,000 tons by 2033, positioning POSCO among the world's top five lithium producers and generating more than KRW 1.8 trillion in operating profit from the business by 2035. The Argentina brine lithium operation turned profitable in March and recently received approval under Argentina's large investment incentive program, supporting expansion toward 100,000 tons of annual brine lithium capacity by 2033. In ore lithium, a joint venture with Mineral Resources Limited secures over 187,000 tons of annual lithium concentrate supply, providing a foundation for refining expansion and stable annual revenues of roughly KRW 200 billion. The group also plans to expand into rare earths and specialty gases, increase overseas steel production capacity to 10 million tons by 2031, grow its LNG value chain and renewable energy projects, and commercialize Physical AI solutions. To support the transformation, POSCO Group plans to invest KRW 16.7 trillion in growth initiatives during 2026-2028 and optimize ownership stakes in listed subsidiaries to around 50%, with about 10% of proceeds used for share buybacks and cancellations.

POSCO International Corporation, a subsidiary of POSCO Holdings, has issued its first-ever global bond, raising $500 million in a five-year offering. The single-tranche bond was priced at 90 basis points over the five-year U.S. Treasury yield, tightening 30 basis points from initial guidance after attracting strong investor demand. The offering was four times oversubscribed, with total orders reaching approximately $2 billion, despite heightened volatility in global financial markets. Proceeds will be used to repay existing foreign-currency borrowings and for general corporate purposes. Asian investors accounted for 67% of allocations, followed by the United States at 27% and Europe at 6%, with asset managers representing 65% of investors.

Posco Holdings shares jumped 6.7% to close at $53.31 in the last trading session on higher-than-average volume. The rally was driven by the company's transition to low-carbon steelmaking, including the completion of South Korea's largest electric arc furnace, which is expected to cut carbon emissions by up to 75% and support its 2050 carbon-neutrality goal. Posco is also advancing Direct Lithium Extraction technology in North America to secure a stable lithium supply chain for the growing electric vehicle battery market. The company is expected to report quarterly earnings of $0.85 per share, a year-over-year increase of 142.9%, on revenues of $12.38 billion, down 1.4% from the prior-year quarter. The stock currently carries a Zacks Rank of 2, or Buy.

ReElement Technologies and Posco International have formed a $200 million joint venture to develop the first integrated rare earth separation and permanent magnet production facility in the United States. The initiative aims to establish a secure, non-China supply chain for critical industries including electric vehicles, defense, and renewable energy, with plans to reach an annual separation capacity of 3,000 metric tons by 2028 and double that by 2030. The partnership combines Posco's industrial market expertise with ReElement's proprietary purification technology to create a closed-loop system using both primary and recycled feedstock, seeking to reduce US dependence on Chinese refining which currently controls over 90% of global permanent magnet production. The companies are evaluating potential US site locations for the modular and scalable project, which is designed to meet surging demand from the North American automotive and advanced technology sectors.

POSCO has commenced a cash tender offer to purchase up to US$400 million aggregate principal amount of its outstanding 5.750% notes due 2028, out of a total US$1 billion principal amount outstanding. The offer includes an early tender premium of US$50 per US$1,000 principal amount for notes tendered by the early tender deadline of July 14, 2026, with early settlement expected on July 20, 2026. The tender offer consideration will be determined by reference to a fixed spread of 30 basis points over the 4.125% US Treasury due June 30, 2028. POSCO intends to fund the purchase using cash on hand and will cancel any notes acquired. The Hongkong and Shanghai Banking Corporation Limited and J.P. Morgan Securities LLC are acting as dealer managers.

POSCO Holdings has completed construction of South Korea's largest electric arc furnace at its Gwangyang plant, a $392.6 million investment with an annual capacity of 2.5 million tons. The furnace, which began construction in 2024, uses recycled steel scrap and is expected to cut carbon emissions by up to 75% compared to conventional blast furnaces. It will support production of low-emission steel products including automotive steel sheets and electrical steel, aligning with tightening global decarbonization policies.

UBS argues that lithium bears are focused on the wrong metric, as the market’s binding constraint is spodumene feedstock, not total tonnes of supply. Wood Mackenzie’s cautious view hinges on saturating China EV sales and a supply response to higher prices, but UBS counters that refining capacity in China runs ahead of mine output, keeping spodumene volatile and headline supply figures misleading. UBS’s recent China feedback was more bullish than expected, with battery output outpacing EV growth on storage and exports, and a pullback in GFEX futures was driven by confusion over ESS shipment data rather than real demand softening. Near-term forces include a reduction in China’s battery export rebate from 9 percent to 6 percent in April 2026 and its elimination by January 2027, which pulls demand forward, while CATL’s lepidolite mine remains offline with a potential H2 2026 restart of around 40,000 tonnes of lithium carbonate equivalent. UBS stays overweight with Buy ratings on Liontown, IGO, Mineral Resources, Albemarle, POSCO, and Patriot Metals.