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Energy
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Market Outlook
Neutral

POSCO Holdings' Battery Materials Pivot: Crossroads of Risk and Opportunity

Analyzing POSCO Holdings' strategy and investment attractiveness as it accelerates its business transition from steel to battery materials.

πŸ€– AI Analysisβ€’February 2, 2026 at 12:00 AM

POSCO Holdings' Transformation

POSCO Holdings has declared a transition from a traditional steel company to a 'green materials company,' undertaking massive investments in battery materials.

Battery Materials Business Status

Lithium

Argentina Salta lithium salt lake project: Target 25,000 tons LCE annual production
First production started H2 2025, full operations expected 2026
Pilbara Minerals stake diversifies lithium supply chain

Cathode Materials

POSCO Future M (formerly POSCO Chemical): 300,000 tons annual cathode capacity
Competitive hi-nickel NCM/NCA cathode technology
North American cathode plant under construction via GM JV

Anode Materials

Expanding market share in natural graphite anode materials
Silicon anode next-gen technology under development

Steel Business Outlook

Traditional steel business faces continued headwinds from Chinese oversupply and demand slowdown.

2025 Steel Operating Profit: -15% YoY
Margin pressure from cheap Chinese steel imports
However, diversifying into growth markets including India

Valuation

Current POSCO Holdings valuation receives mixed assessments:

Steel business basis: P/E 11.5x β†’ Fair to overvalued
Including battery materials growth: SOTP suggests β‚©400,000+ value
Market is discounting materials business monetization uncertainty

Risks

Lithium price plunge would hurt Argentina project profitability
Battery tech changes (solid-state etc.) may shift materials demand
Steel business weakness burdens overall earnings

Investment Opinion

While steel business headwinds create short-term drag, meaningful lithium revenue contribution and cathode expansion effects are expected from H2 2026. Current share price insufficiently reflects materials business value, making mid-to-long-term buying valid.

Rating: Buy (Target Price: β‚©380,000)

πŸ’‘Methodology

This analysis is auto-generated by AI combining investment bank reports, earnings data, market data, and news sentiment. Not investment advice.