[Special Stock] POSCO Future M Faces Double Challenges from Chinese Low-Price Competition and US Tariff Policies

POSCO Future M Hits 52-Week Low
Shares Fall Amid Weak Battery Demand and Policy Uncertainty

POSCO Future M is showing weakness in the early trading session. The investment sentiment appears to have frozen due to the combined negative factors of China's low-price competition in secondary batteries and U.S. President Donald Trump's suspension of electric vehicle support.

As of 9:10 a.m. on the 3rd, POSCO Future M's stock price is trading at 134,600 KRW, down 5.74% (8,200 KRW) from the previous close. During the session, it fell to as low as 134,100 KRW, marking a 52-week low.

Stocks of the 'K-battery' sector, which have been struggling with weak demand and price competition with Chinese companies, are now on high alert due to policy risks from the Trump administration. Earlier, on the 2nd, President Trump imposed a 25% tariff on imports from Canada and Mexico and an additional 10% tariff on Chinese products, prompting retaliatory measures from the affected countries and casting a shadow of trade war tensions. In particular, POSCO Future M is inevitably impacted as it is building a battery cathode material joint venture plant in Canada together with General Motors (GM).

According to FnGuide, the chemical sector, which includes many secondary battery-related stocks, has seen its 2025 operating profit estimates plunge by more than 12% over the past month. POSCO Future M's operating profit expectations dropped by 8.8%, while those of EcoPro BM and LG Chem also fell by 7.7% and 3.1%, respectively.

Researcher Kwon Junsu from Kiwoom Securities explained, "Given the high uncertainty surrounding electric vehicle policies in the U.S. and Europe, we maintain a conservative investment stance on the sector until policy details are clarified."

Researcher Han Jiyoung from Kiwoom Securities stated, "The reality of imposing tariffs on the three countries?Canada, Mexico, and China?has become unavoidable," but also assessed, "It is premature to reflect the 'worst-case scenario' of tariffs leading to retaliation, additional tariffs, and a full-scale trade dispute in stock prices."