POSCO Holdings to invest $633 million in battery units amid EV slowdown
POSCO Center / Courtesy of POSCO Holdings
POSCO Holdings said Tuesday it will inject 922.6 billion won (US$633 million) into three of its battery materials affiliates to help them navigate financial difficulties stemming from sluggish demand in the electric vehicle (EV) market.
The investment will be made through separate share offerings by POSCO Future M Co., POSCO Pilbara Lithium Solution and POSCO GS Eco Materials, the holding company said in a regulatory filing.
The move comes as demand for EV batteries remains subdued due to the "EV chasm" — a slowdown in consumer adoption before mass-market growth.
POSCO Future M, the group's flagship affiliate, plans to raise 1.1 trillion won by issuing new shares to fund facility investments, operational costs and other business needs.
The other two affiliates are expected to use proceeds from the share sales to strengthen liquidity and continue raw material sourcing and processing operations.