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Posco Holdings will inject around 1 trillion won ($701 million) into three key affiliates in its battery materials business as part of a strategic effort to strengthen future competitiveness and prepare for growth once the EV market recovers from a temporary slowdown.
Posco Holdings’ board approved equity investments of 525.6 billion won in Posco Future M, 328 billion won in Posco Pilbara Lithium Solution, and 69 billion won in Posco GS Eco Materials.
Posco Future M, the group’s core battery materials subsidiary, had earlier announced a rights offering worth 1.1 trillion won to secure growth capital.
Posco Holdings will subscribe to the full allotment of new shares based on its 59.7 percent stake in Posco Future M. The funds will support ongoing projects such as a cathode materials joint venture plant in Canada and capacity expansions at cathode production sites in Pohang, North Gyeongsang, and Gwangyang, South Jeolla.
The goal is to solidify Posco’s position in both domestic and global supply chains for battery components.
Posco Pilbara Lithium Solution and Posco GS Eco Materials will use their respective 400 billion won and 69 billion won capital increases to improve their financial standing and ensure stable operations.
Posco Pilbara Lithium Solution, jointly owned by Posco Holdings and Australia’s Pilbara Minerals — with stakes of 82 percent and 18 percent, respectively — imports lithium ore from Australia to produce lithium hydroxide for battery use.
Posco GS Eco Materials serves as the holding company for Posco HY Clean Metal, which focuses on battery recycling. Posco Holdings currently owns 51 percent, and GS Energy 49 percent. After the rights offering, their stakes will shift to 70.3 percent and 29.7 percent, respectively.
![Posco Group Chairman Chang In-hwa, far left, visits the construction site of Ultium CAM, Posco's cathode materials joint venture with General Motors in Quebec, Canada, on April 29. [POSCO]](https://koreajoongangdaily.joins.com/data/photo/2025/05/13/3d088bca-c0a5-44ba-9878-32528c0004f8.jpg)
Posco Group Chairman Chang In-hwa recently visited the construction site of Ultium CAM, the company’s cathode materials joint venture with General Motors in Quebec, Canada.
“This facility will act as a gateway into the North American market as the battery materials sector regains momentum,” he said during his April 29 visit.
Since taking office, Chang has promoted a “2 Core + New Engine” strategy, prioritizing the steel and battery materials businesses while channeling group resources into emerging growth sectors.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY LEE SU-JEONG [kim.juyeon2@joongang.co.kr]
Posco Holdings To Inject $701 Million Into Three Battery Business Affiliates As Ev Market Improves
Posco's logo is shown at the company's offices in Gangnam District, southern Seoul. [YONHAP]
Posco Holdings will inject around 1 trillion won ($701 million) into three key affiliates in its battery materials business as part of a strategic effort to strengthen future competitiveness and prepare for growth once the EV market recovers from a temporary slowdown.
Posco Holdings’ board approved equity investments of 525.6 billion won in Posco Future M, 328 billion won in Posco Pilbara Lithium Solution, and 69 billion won in Posco GS Eco Materials.
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Posco Holdings will subscribe to the full allotment of new shares based on its 59.7 percent stake in Posco Future M. The funds will support ongoing projects such as a cathode materials joint venture plant in Canada and capacity expansions at cathode production sites in Pohang, North Gyeongsang, and Gwangyang, South Jeolla.
The goal is to solidify Posco’s position in both domestic and global supply chains for battery components.
Posco Pilbara Lithium Solution and Posco GS Eco Materials will use their respective 400 billion won and 69 billion won capital increases to improve their financial standing and ensure stable operations.
Posco Pilbara Lithium Solution, jointly owned by Posco Holdings and Australia’s Pilbara Minerals — with stakes of 82 percent and 18 percent, respectively — imports lithium ore from Australia to produce lithium hydroxide for battery use.
Posco GS Eco Materials serves as the holding company for Posco HY Clean Metal, which focuses on battery recycling. Posco Holdings currently owns 51 percent, and GS Energy 49 percent. After the rights offering, their stakes will shift to 70.3 percent and 29.7 percent, respectively.
Posco Group Chairman Chang In-hwa, far left, visits the construction site of Ultium CAM, Posco's cathode materials joint venture with General Motors in Quebec, Canada, on April 29. [POSCO]
Posco Group Chairman Chang In-hwa recently visited the construction site of Ultium CAM, the company’s cathode materials joint venture with General Motors in Quebec, Canada.
“This facility will act as a gateway into the North American market as the battery materials sector regains momentum,” he said during his April 29 visit.
Since taking office, Chang has promoted a “2 Core + New Engine” strategy, prioritizing the steel and battery materials businesses while channeling group resources into emerging growth sectors.
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY LEE SU-JEONG [kim.juyeon2@joongang.co.kr]
