POSCO Future M achieves quarterly record sales of 1.1 trillion KRW with operating profit of 20.3 billion KRW

POSCO Future M recorded its highest-ever quarterly sales thanks to the growth of its battery materials business.

On the 27th, POSCO Future M announced its Q1 consolidated financial results, reporting sales of 1.1352 trillion KRW and an operating profit of 20.3 billion KRW.

Aerial view of POSCO Future M's anode material factory in Pohang. Photo by POSCO Future M

The battery materials business posted sales of 779.9 billion KRW in Q1. Sales increased by 77.1% compared to the previous quarter due to expanded sales volume of cathode and anode materials.

Cathode material sales rose 85.5% quarter-on-quarter to 712.2 billion KRW, while anode material sales increased 19.8% to 67.7 billion KRW. Overall growth in cathode material sales was driven by the start of production and sales of NCMA high-nickel cathode materials for electric vehicle batteries. Anode materials also achieved record sales due to increased sales volume from customer diversification.

Basic materials business sales increased 4.3% from the previous quarter to 355.3 billion KRW.

Amid explosive growth in the electric vehicle and battery markets, POSCO Future M has recorded cumulative orders worth 93 trillion KRW in the battery materials sector since last year, including a 40 trillion KRW cathode material supply contract with Samsung SDI in January and a 30 trillion KRW contract with LG Energy Solution on the 26th. Negotiations for supply contracts with major domestic and international customers are ongoing, and domestic and overseas investments to expand cathode and anode material production capacity are expected to continue increasing.

In particular, with the U.S. government?one of the world’s largest automobile markets?announcing a policy to replace 67% of new cars with electric vehicles by 2032, the outlook for POSCO Future M’s battery materials business is gaining momentum, and it is expected to set new record highs annually.

Meanwhile, POSCO Future M also introduced its ESG management activities and achievements on the same day. Last year, it transparently disclosed the environmental impact of the entire cathode and anode material production process and became the first in the battery materials industry to receive Environmental Product Declaration certification. It joined the Task Force on Climate-related Financial Disclosures (TCFD) and the Taskforce on Nature-related Financial Disclosures (TNFD), sharing information in compliance with TCFD guidelines. Recognizing these efforts and achievements, it earned an A rating in the ESG evaluation conducted by MSCI in December last year.

Additionally, in February, POSCO Future M established and is operating a dedicated Carbon Neutrality Group to build a carbon-neutral management system aimed at achieving RE100. In the second half of the year, it plans to expand the installation of solar power generation facilities at cathode and anode material plants to promote the use of renewable energy.

This content was produced with the assistance of AI translation services.