POSCO Future M : Announces First Quarter Financial Results

POSCO Future M Announces First Quarter Financial Results

2024.04.25

- Consolidated revenue reached KRW 1.1384 trillion with an operating profit of KRW 37.9 billion, marking a return to profitability<_o3a_p>

- Increased sales of cathode and anode materials and enhanced productivity of single-crystal cathode materials<_o3a_p>

- Launch of a silicon anode material demo plant scheduled for the end of this month to accelerate the development of next-generation materials that will boost the proliferation of electric vehicles<_o3a_p>

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POSCO Future M reported consolidated revenues of KRW 1.1384 trillion and an operating profit of KRW 37.9 billion for the first quarter.<_o3a_p>

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Despite stagnation in demand in the downstream markets, which led to a general decline in product prices, the company returned to profitability through production stabilization, increased supply, and the reversal of inventory valuation losses.<_o3a_p>

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In the battery materials business, the prices of critical metals such as lithium and nickel weakened, leading to a drop in the sales price of cathode materials compared to the previous quarter. However, improvements in the yield of high-performance single-crystal cathode materials for electric vehicles and increased sales volumes, along with increased production and sales of anode materials, enhanced profitability. Moreover, a revaluation gain of KRW 46.7 billion on inventories previously recognized as valuation losses in Q4 of last year contributed to revenues and operating profits of KRW 781.7 billion and KRW 25.1 billion, respectively.<_o3a_p>

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The basic materials business saw a decline in the sales prices of chemical products due to weak oil prices in Q4 of last year; however, increased sales volumes of refractories led to revenues and operating profits of KRW 356.7 billion and KRW 12.8 billion, respectively.<_o3a_p>

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Since March of last year, POSCO Future M has focused on improving yields after starting the mass production and supply of NCMA high-nickel single-crystal cathode materials in Korea, a first for the country. The production at the Pohang factory, designed exclusively for single-crystal cathode materials, has also been ramped up, improving profitability.<_o3a_p>

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Furthermore, at the end of this month, a demo plant for Silicon-Carbon composite (Si-C) anode materials with an annual capacity of 50 tons will be operational at the Yeongil Bay Industrial Complex in Pohang, accelerating the development of new products. Once mass production technologies are established, the company expects a production system of 1,000 tons by 2026 and 10,000 tons by 2030. Silicon anode materials, which can store over four times more energy than the currently used graphite anode materials, are expected to significantly enhance the driving range of electric vehicles and enable faster charging, thus substantially contributing to the adoption and popularization of electric vehicles.

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