POSCO Holdings aims to generate $48 billion in secondary battery material sales by 2030

Jeong Ki-seop, head of POSCO Holdings' strategy office, speaks at the 2nd POSCO Group Secondary Battery Material Business Value Day event at POSCO Center in Seoul, Tuesday. Courtesy of POSCO Holdings.

By Kim Hyun-bin

POSCO Holdings aims to expand its production capacity for lithium and other key raw materials used in secondary batteries by 2030. The company has set a target of achieving 62 trillion won ($48 billion) in revenue in the secondary battery materials sector. Its announcement came during the 2nd POSCO Group Secondary Battery Material Business Value Day, Tuesday.

POSCO Group has set a growth target of 62 trillion won in total revenue for the secondary battery material sector by 2030, representing a 51 percent increase compared to the previous year.

In terms of raw materials, the company aims to achieve a total lithium production capacity of 423,000 metric tons with a revenue of 13.6 trillion won. It also plans to secure 240,000 metric tons of high-purity nickel, resulting in revenue of 3.8 trillion won. Through recycling initiatives, it aims to establish a production capacity of 70,000 metric tons for lithium, nickel, cobalt and other materials, with a revenue of 2.2 trillion won.

In addition, it plans to establish a cathode material system with a capacity of 1 million metric tons and revenue of 36.2 trillion won, as well as an anode material system with a capacity of 370,000 metric tons and revenue of 5.2 trillion won.

To achieve these goals, POSCO Holdings plans to concentrate 46 percent of its total investment budget on secondary battery materials over the next three years.

"We will focus on investing in the materials business in the early stages of the secondary battery industry to capture the global market. We expect to start generating substantial profits after 2026," said Jeong Ki-seop, POSCO Holdings head of the chief strategy office.

POSCO Holdings aims to expand its lithium business with clay lithium based on the already-invested brine mines. Its plan includes developing stages 3 and 4 of a brine mine in Argentina and establishing a system for producing 100,000 metric tons of lithium from brine by 2027.

In the recycling business, POSCO Holdings intends to establish a green recycling ecosystem by creating global hubs in key markets such as Europe and the U.S. Its plan involves processing raw materials from used batteries and supplying them back to customer companies in an eco-friendly manner.