POSCO Future M Aims to Earn 3.4 Trillion Won Profit by 2030 Through Secondary Battery Materials

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By Kim Seung-yeon

SEOUL, Aug. 28 (Yonhap) — POSCO Future M Co. announced Monday that it is aiming to make 3.4 trillion won (US$2.57 billion) in annual operating profit by 2030 by expanding its manufacturing of secondary battery materials due to the increasing demand for electric vehicles (EVs).

The chemical subsidiary of South Korean steel giant POSCO Holdings Inc. also revealed a goal of achieving 43 trillion won in sales by the same year. In 2022, the company reported 165.8 billion won in operating income on sales of 3.3 trillion won.

To reach their mid- to long-term objectives, POSCO Future M will focus on becoming a “total solution provider” in the entire value chain, from the sourcing of minerals to production of materials and recycling, according to POSCO Future M President and CEO Kim Jun-hyung at a media event.

Kim said that the basic chemicals segment, mainly referring to refractories and burnt lime, will add more environmentally friendly products to its portfolio as part of efforts toward the green transition.

POSCO Future M plans to expand overseas, particularly in Vietnam and Turkey. Founded in 1971 as a POSCO arm, the company has primarily been involved in the production of refractories and burnt lime.

In recent years, POSCO Future M has been actively transitioning to the secondary battery components business, particularly the materials used to make cathodes and anodes — core materials used in lithium-ion cells for EVs.

POSCO Future M asserts that it is one of the few companies capable of producing both cathodes and anodes. It supplies cathodes to Samsung SDI Co., LG Energy Solution Ltd. (LGES) and Ultium Cells LLC., the U.S. joint venture between LGES and General Motors Co.

As of late July, POSCO Future M had an order backlog of 106 trillion won.

This photo taken on May 23, 2023, shows POSCO Future M CEO Kim Jun-hyung speaking at a signing event for the preliminary partnership with the Pohang city, a university and a tech high school in the region on the training of manpower in the secondary battery sector. (Yonhap)

This photo taken on May 23, 2023, shows POSCO Future M CEO Kim Jun-hyung speaking at a signing event for the preliminary partnership with the Pohang city, a university and a tech high school in the region on the training of manpower in the secondary battery sector. (Yonhap)

elly@yna.co.kr
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