Targeting 20% Anode Material Market Share by 2030
Securing Strong Market Position with Inflation Reduction Act Passage
Securing Mineral Resources through Group Companies
Procuring Lithium and Nickel via Recycling Corporation
Leading in Eco-Friendly Production
[Asia Economy Reporter Hwang Yoon-joo] As the electric vehicle market begins to bloom in earnest, POSCO Chemical is gaining attention once again. Hana Securities has maintained a 'Buy' rating on POSCO Chemical while raising the target price to 206,000 KRW.
Kim Hyun-soo, a researcher at Hana Securities, stated, "POSCO Chemical has secured the most solid position in the cathode material market, which has entered a seller's market."
Researcher Kim explained, "With the passage of the Inflation Reduction Act (IRA), a 'purchase competition' will arise among global original equipment manufacturers (OEMs) aiming to sell electric vehicles in the U.S. to secure POSCO Chemical's cathode materials."
Due to the passage of the IRA bill, to receive subsidies when selling electric vehicles in the U.S. market, mineral resources must be sourced from the U.S. or countries that have free trade agreements (FTA) with the U.S.
Researcher Kim said, "POSCO Chemical is expected to procure 30,000 tons each of lithium and nickel through its recycling subsidiaries, PLSC and POSCO HY Clean Metal," adding, "The marketability of POSCO Chemical's cathode materials will increase in Europe, where mineral procurement ratios through recycling are already regulated, and in the U.S. market, where related provisions are expected to be introduced."
POSCO Chemical is also expected to significantly increase its market share in cathode materials through aggressive capacity expansion. POSCO Chemical plans to expand its annual production capacity (CAPA) of cathode and anode materials to 610,000 tons and 320,000 tons, respectively, by 2030.
This target is aimed at the expected cathode material demand (3.2 million tons) based on the projected global electric vehicle sales volume of 34 million units in 2030. POSCO Chemical plans to raise its global market share of cathode materials to around 20%.
Vertical integration of mineral procurement and increase in recycling procurement volume As mineral demand rises sharply, securing mineral resources necessary for producing 610,000 tons of cathode materials has become a critical issue.
Researcher Kim analyzed, "The major mineral resource amounts required for producing 610,000 tons of cathode materials are approximately 70,000 tons of lithium and 400,000 tons of nickel," adding, "POSCO Holdings, the parent company of POSCO Chemical, plans to produce 300,000 tons of lithium and 220,000 tons of nickel by 2030 through subsidiaries such as POSCO Argentina (lithium) and SNNC (nickel), ensuring stable resource procurement."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
