POSCO Future M's Q2 Sales 'Quarterly Record'... Operating Profit Down 5.6% YoY

83 Trillion Won Anode Material Supply Contract in the First Half of the Year

Posco Future M achieved record-high sales for the second consecutive quarter, driven by the expansion of its battery materials product portfolio, although operating profit slightly decreased compared to a year ago.

Posco Future M announced on the 24th that it posted consolidated sales of 1.193 trillion KRW and operating profit of 52.1 billion KRW in the second quarter. Sales increased by 48.5% year-on-year, while operating profit decreased by 5.6%. Compared to the previous quarter, sales rose by 5.1%, and operating profit surged by 157.3%.

By business segment, battery materials business recorded sales of 842.5 billion KRW and operating profit of 37.5 billion KRW, up 8.0% and 124.6% respectively from the previous quarter.

Sales in the cathode materials segment reached 786.3 billion KRW. Posco Future M explained, "The sales proportion of the premium-grade N86 cathode material for high-performance electric vehicles increased," adding, "We also contributed to the sales growth by being the first in Korea to mass-produce and supply high-nickel single-particle cathode materials with high energy efficiency and stability since April."

Sales in the anode materials segment were 56.2 billion KRW. Although sales volume declined by 17.0% quarter-on-quarter due to reduced demand, profitability improved somewhat thanks to increased plant operating rates. Sales in the basic materials business stood at 350.5 billion KRW, maintaining the previous quarter’s level, but profitability improved in both the refractory and lime chemical businesses, with operating profit rising significantly from 3.6 billion KRW in the previous quarter to 14.6 billion KRW.

POSCO Group Chairman Choi Jung-woo visited the construction site of the POSCO Future M cathode material plant located in Quebec, Canada, on the 21st of last month (local time) and took a commemorative photo with employees.
[Photo by POSCO Holdings]

In the first half of this year alone, Posco Future M signed large-scale cathode material supply contracts totaling 83 trillion KRW with domestic and international battery companies such as Samsung SDI, LG Energy Solution, and Ultium Cells. Since 2022, it has secured cumulative orders worth 106 trillion KRW in the battery materials sector. Posco Future M stated, "Additional supply contracts with major automakers and battery companies are expected in the second half of the year, so performance growth is anticipated to continue."

On the 11th, Posco Group held a secondary battery materials value day and presented a vision to become a global leading company in secondary battery materials by 2030, focusing 46% of the group’s total investment over the next three years on the secondary battery materials business. Posco Future M plans to produce and supply 1 million tons of cathode materials and 360,000 tons of anode materials annually by 2030 (with an additional 10,000 tons from Posco Silicon Solution). This represents a tenfold increase in cathode materials and a fivefold increase in anode materials compared to current production capacity.

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