Posco Group restructures in full blitz to supply core resources

Posco outlined a vision of becoming a "Representative Supplier of Core Resources for the Nation" under a new Triple-Core framework encompassing steel, rare earth elements and renewable energy during investor day on July 2.

Addressing the 2026 annual general meeting, CEO Jang In-hwa said the company will validate future investment gains with quantifiable data, building a solid foundation for secondary battery materials and steel despite FTA complexities and market stagnation.

Through an innovative blitz, Posco is targeting total net sales of 187 trillion won ($143.8 billion) and an operating profit of 13.1 trillion by 2035.

At the forefront of this growth lies the company’s lithium division, which aims to become a top five global producer with an annual capacity of 173,000 tons by 2033. By 2033, the company will accelerate the execution of its Phase 3 and 4 brine lithium investments to build a 100,000-ton production system. Posco Holdings also strengthened its lithium supply chain by closing a $65 million deal to fully acquire Lithium South's Argentine entity.

Building on this lithium momentum, in April, Posco Group secured 18.7 million tons of lithium annually through a joint contract with a large-scale mineral resources company for about $7.6 billion. Through this lithium project, the company expects a stable annual profit of $200 billion.

Posco Steel plans to boost production capacity to 1 billion tons in high-potential markets and profitable countries such as India, China, and Indonesia, while reallocating profits to support domestic low-carbonization initiatives.

Beyond steel and minerals, the group’s new core focus is on energy resources that combine sustainability with profitability. Posco’s renewable energy division is aggressively expanding into the domestic offshore wind and international solar markets, leading efforts to strengthen national energy security.

To expedite this transition, Posco has allocated 16.7 trillion won for growth investments through 2028. Beyond securing resources, the group aims to adjust subsidiary stakes to roughly 50 percent to mitigate decreased holding company valuations while dedicating 10 percent of divestment proceeds to share buybacks and cancellations to strengthen shareholder value.

BY LEE SO-YOUN [lee.soyoun1@joongang.co.kr]