POSCO Group to Cancel 2 Trillion Won of Treasury Shares... "Continuing Strong Shareholder Return Policy"

Secondary Battery Material Business Value Day Held
Restructuring of 120 Low-Profit Assets Underway

POSCO Holdings is advancing steel business investments in the United States and India and has finalized a restructuring plan for 120 low-profit assets. The company will proceed with the cancellation of treasury shares worth approximately 2 trillion KRW.

On the 12th, POSCO Holdings held the 3rd POSCO Group Secondary Battery Materials Business Value Day at the POSCO Center, where it disclosed these details. Jeong Gi-seop, CEO of POSCO Holdings’ Strategy and Planning Division, stated, "We will focus the group’s resources and capabilities on steel and secondary battery materials businesses," adding, "Along with growth investments and adjustments to low-profit assets to improve capital efficiency, we will continue a strong shareholder return policy, including canceling all treasury shares held, excluding those deposited for exchangeable bonds, over the next three years."

The event was attended by about 200 people, including CEO Jeong, Kim Jun-hyung, Vice President of Secondary Battery Materials, Hong Young-jun, Vice President and Head of the Secondary Battery Materials Research Institute, as well as domestic and international institutional investors and securities analysts.

POSCO Group plans to pursue upstream and midstream investments in the steel business sector in India and the United States. In the secondary battery materials industry, the group aims to leverage the market growth slowdown (chasm) period to actively secure high-quality resources and establish an efficient mass production system, thereby enhancing competitiveness and advancing to a global top-tier raw materials and materials company.

Vice President Kim Jun-hyung introduced the group’s ‘Secondary Battery Materials Business Advancement Strategy,’ stating, "POSCO Group will overcome the chasm through ▲completing the full value chain ▲strengthening business competitiveness ▲securing the next-generation battery materials market, aiming to achieve approximately 11 trillion KRW in group sales from the secondary battery materials business by 2026."

This year marks the first year POSCO Group will fully operate all supply systems for secondary battery materials it holds. By completing the full value chain, the group will provide customized integrated solutions to customers. The know-how of being the global number one in steel business competitiveness will also be shared with the secondary battery materials business to enhance operational and production competitiveness. Furthermore, the group plans to drive the full-scale growth of the secondary battery materials business by creating synergies through the combined capabilities of the Future Technology Research Institute, POSTECH, and POSCO Future M.

To strengthen business competitiveness, the group plans to secure high-quality lithium resources such as salt lakes and mines and produce Inflation Reduction Act (IRA)-qualified nickel products refined and purified domestically.

For cathode materials, the strategy includes diversifying customers and product portfolios. For anode materials, POSCO Group plans to strengthen its lineup of natural, artificial, and silicon-based materials as the world’s only IRA-qualified, non-FEOC (Foreign Entity of Concern) producer. To secure the next-generation battery materials market, the group will supply all three core components of all-solid-state batteries?cathode materials, solid electrolytes, and lithium metal anode materials?in coordination with customers’ commercialization plans for all-solid-state batteries.

POSCO Group aims to expand its secondary battery materials business investments to reach 96,000 tons of lithium, 48,000 tons of nickel, 395,000 tons of cathode materials, and 114,000 tons of anode materials by 2026.

Additionally, to enhance capital efficiency, the group has finalized a restructuring plan for 120 assets that do not align with strategy, low-profit businesses, and unused assets. POSCO Group expects to complete over 97% of the restructuring targets by 2026, generating approximately 2.6 trillion KRW in cash inflows, which will be reinvested in core businesses and shareholder returns.

The company will also continue its strong shareholder return policy. POSCO Holdings plans to cancel all treasury shares held, excluding the 4% (3.45 million shares) mandatory deposit portion related to exchangeable bonds issuance, amounting to 6% (5.25 million shares, approximately 1.9 trillion KRW) by 2026. Additionally, the board has approved the immediate cancellation of newly purchased treasury shares worth about 100 billion KRW. The company also announced a basic policy to immediately cancel all newly acquired treasury shares for shareholder value enhancement purposes, except those used for employee incentives.