POSCO Group Holds '2022 2nd Battery Materials Business Value Day'

Presentation on Achievements and Future Vision of Secondary Battery Materials Business
Positive and Negative Electrode Materials Business Sales Expected to Surpass 1 Trillion Won This Year

[Asia Economy Reporter Donghoon Jeong] POSCO Group held the '2022 Secondary Battery Materials Business Value Day' to announce the role and growth goals of the holding company and to introduce the achievements and future vision of the secondary battery materials business.

The event held on the 5th at POSCO Center was attended by Jeon Jung-seon, Head of POSCO Holdings Management Strategy Team (President), Yoo Byung-ok, Head of Eco-friendly Future Materials Team (Vice President), Lee Kyung-seop, Head of Secondary Battery Materials Business Promotion Group (Executive Director), Jung Dae-heon, Head of Energy Business Division at POSCO Chemical (Vice President), as well as about 150 domestic and international institutional investors and securities analysts.

Since starting lithium extraction technology development in 2010, POSCO Group has focused on ▲full-scale anode and cathode material business ▲strengthening secondary battery raw material business through acquisitions such as Argentina lithium salt lake, investments in Australian lithium, nickel, and Tanzanian graphite mines ▲entry into secondary battery recycling business ▲preparing next-generation secondary battery material capabilities, and has been working to build the value chain necessary for supplying secondary battery materials.

In particular, this event provided attendees with a virtual experience opportunity using the latest videos from global business sites such as the Argentina salt lake, Australian lithium and nickel mines, and POSCO HY Clean Metal, enhancing their understanding.

Jeon Jung-seon, Head of POSCO Holdings Management Strategy Team, said, "Due to the steel-centered business structure, POSCO Holdings' stock price trend has shown a cyclical pattern fluctuating according to steel market conditions," adding, "To break away from this trend and shift to an upward growth graph, we will focus on new growth businesses such as secondary battery materials and hydrogen and accelerate balanced growth of the group."

Yoo Byung-ok, Head of POSCO Holdings Eco-friendly Future Materials Team, presented on 'The Past, Present, and Future of POSCO Group's Secondary Battery Materials Business.' He stated that the business, nurtured through proactive technology development and investment over the past decade, has begun to bear fruit, noting, "POSCO Group's anode and cathode material business was only 38 billion KRW in 2015 but is expected to exceed 1 trillion KRW this year."

Following this, Jung Dae-heon, Head of POSCO Chemical Energy Materials Business Division, revealed the 'Status and Strategy of Anode and Cathode Material Business.' The anode and cathode material business has steadily built a growth foundation based on POSCO Group's raw material competitiveness, and plans to secure competitive advantages and lead the market through ▲development of next-generation secondary battery anode and cathode materials ▲diversification of product portfolio ▲establishment of global production capacity in North America, Europe, and China ▲expansion of strategic partnerships.

Additionally, Lee Kyung-seop, Head of POSCO Holdings Secondary Battery Materials Business Promotion Group, introduced the 'POSCO Group Secondary Battery Materials Business Strategy,' including the current status of value chain construction. POSCO Group is the only company in the world to build a value chain that produces and supplies secondary battery raw materials such as lithium, nickel, and graphite, as well as precursors, anode and cathode materials, and next-generation secondary battery materials. Through this, by 2030, the group plans to establish a production and sales system of 610,000 tons of cathode materials, 320,000 tons of anode materials, 300,000 tons of lithium, and 220,000 tons of nickel, aiming to achieve sales of 41 trillion KRW in the secondary battery materials business alone.

Going forward, POSCO Group aims to diversify its steel-centered business structure and establish a growth structure by 2030 where sales and operating profits of the steel, eco-friendly future materials, and eco-friendly infrastructure business divisions are balanced.

Meanwhile, POSCO Group plans to hold the 'POSCO Group Secondary Battery Materials Business Value Day' for overseas investors in Singapore on the 7th, and will continue to hold value day-style briefings on major group businesses to expand communication with investors.