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Posco reshuffle positions group as rising leader in materials amid market shifts

Published: 31 Dec. 2025, 10:49

Jang In-hwa, CEO of Posco Holdings, second from left, examines the site of Ultium CAM, a joint venture between General Motors and the Korean firm’s subsidiary, Posco Future M, on April 29. [POSCO]

Posco is on track to end 2025 in a robust position as it logged revenue of 1.4 trillion won ($977 million) through the third quarter of the year through reorganization projects, with an additional 1.2 trillion expected with 63 more restructuring plans to boost financial solvency.

The success stems from the “2 Core+New Engine” initiative announced by Jang In-hwa, CEO of Posco Holdings, in March of last year when he took the helm. Under his vision, the firm directed its focus on steel, secondary batteries and new businesses as part of an overhaul to fortify the group’s long-term development.

Under the plan, some departments that lost their purpose would be reshuffled to boost overall competitiveness, with the CEO focusing on the group’s key sector, steel, with a “complete localization” strategy.

A further part of the strategy is further investment in the steel industry in India and the United States, fast-growing and high-profit regions. To gain a solid foothold in the Indian market, the company decided to proceed with a joint project with JSW Steel on a local integrated steel plant. It is also strengthening cooperation with Hyundai Motor Group in future mobility, from steel to secondary battery materials. Posco plans to remain strong through collaborations with Hyundai Mobility Group to secure a bridgehead in the North American steel market.

Posco is also set to work with Cleaveland-Cliffs, a top firm in blast furnace operation, aiming for fast entry into the U.S., steel industry while shoring up its supply chain. This collaboration presents an opportunity for Posco to secure supply for shipbuilding back plates and participation in Korea’s “Make American Shipbuilding Great Again” initiative.

While global EV demand wanes, Posco is pivoting to strengthen its competitiveness in the secondary battery value chain, using the current lull to secure high-value resources and prepare for the resurgence of demand.

Posco announced an investment of 1.1 trillion won to secure lithium in November, which will allow the company to increase its competitiveness and secure stable resources at the same time through rapid investment.

The company invested $65 million to acquire 30 percent of shares in the newly established intermediary holding company of Mineral Resources, a top Australian mining firm, which can ensure a stable supply of lithium from the Wodgina and Mt. Marion mines, two leading lithium extraction operations.

Posco Holdings also invested $65 million to acquire to acquire the entirety of Lithium South, a Canadian resources development company that holds the rights to mining in a lake in Hombre Muerto, Argentina.

With investment for future growth in core sectors, Posco Group is aiming to step up from a half-century legacy as a steel firm to a materials company that contributes to the nation’s economy and industrial competitiveness by localizing the secondary battery material supply chain.

BY LEE DAHYUN [[email protected]]

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