POSCO Holdings Inc. (PKX): Business Model Canvas [Dec-2025 Updated]

You're looking at a legacy industrial giant, but one that's aggressively pivoting; POSCO Holdings Inc. isn't just about steel anymore, it's a materials powerhouse, evidenced by their Q1 2025 revenue hitting KRW 17.437 trillion while pouring capital into future tech. As a former analyst who's seen these transformations up close, I can tell you the real story is in the details of how they're balancing core operations with securing lithium and developing HyREX hydrogen steelmaking. Below, we break down their entire nine-block model-from key partnerships like Pilbara Minerals to their massive KRW 1.5 trillion CAPEX-so you can see the strategic blueprint for their next decade. Dive in to see the structure behind the shift.

POSCO Holdings Inc. (PKX) - Canvas Business Model: Key Partnerships

You're looking at the core alliances that secure POSCO Holdings Inc.'s material future, especially in the pivot toward green mobility and decarbonization. These aren't just handshake deals; they involve capital investment and guaranteed off-take volumes.

Hyundai Motor Group represents a critical link for future mobility materials. POSCO Holdings signed a Memorandum of Understanding (MOU) in April 2025 to cooperate on low-carbon steel and secondary battery components like lithium and anodes. POSCO is making an equity investment in Hyundai Motor Group's Electric Arc Furnace (EAF) integrated steel mill project in Louisiana, USA. This mill is expected to commence operations in 2029 with an annual production capacity of up to 2.7 million metric tons of hot-rolled and cold-rolled steel sheets. This secures POSCO a foothold in the North American steel market.

The battery material supply chain is heavily reinforced through the joint venture, POSCO Pilbara Lithium Solution (PPLS), with Pilbara Minerals (Australia). PPLS completed construction of its second lithium hydroxide plant in Gwangyang, Korea, in late 2024, establishing a combined annual production capacity of 43,000 tpa of battery-grade lithium hydroxide. This volume is sufficient to support batteries for approximately 1 million electric vehicles annually. POSCO Holdings maintains an 82% stake in PPLS, while Pilbara Minerals holds 18%, which also supplies spodumene concentrate from its Pilgangoora operation under a long-term offtake agreement. Furthermore, POSCO Holdings holds a 4.75% stake in the Pilgang Gura mine in Australia, the source of the raw lithium.

For next-generation technology, POSCO Future M, the battery materials unit, signed an MOU in November 2025 with Factorial (US) to co-develop materials for all-solid-state batteries (ASSB). Factorial selected POSCO Future M after testing cathode material samples, noting their superior rate capability.

To tackle steelmaking emissions, the non-binding MOU with Hazer Group (Australia) was extended for another two years, focusing on integrating Hazer's clean hydrogen and low-emission graphite technologies. Hazer's process co-produces clean hydrogen and high-purity graphite using iron ore as a catalyst, supporting POSCO's 2050 carbon neutrality target.

Stable input for core operations relies on long-term contracts with global iron ore and coking coal suppliers. As of December 31, 2023, POSCO imported approximately 49 million dry metric tons of iron ore and 25 million wet metric tons of coal in 2023. Under long-term contracts existing at the end of 2023, there remained a commitment to purchase 43 million tons of iron ore and 15 million tons of coal. Separately, one report indicated POSCO agreed with a supplier to decline the Q4 contract price for iron ore by 10%~13% and hard coking coal by 7%.

Here's a quick look at the scale of the key material supply and investment agreements:

Partner	Focus Area	Key Metric	Value/Volume	Status/Date Reference
Hyundai Motor Group	Low-Carbon Steel / Battery Materials	Louisiana EAF Mill Capacity	2.7 million metric tons per year (projected)	MOU April 2025; Start 2029
Pilbara Minerals (via PPLS JV)	Lithium Hydroxide Production	Total Annual Capacity (Gwangyang)	43,000 tpa of Lithium Hydroxide	Completed late 2024
Pilbara Minerals (via PPLS JV)	Lithium Hydroxide Production	EV Battery Equivalent	Sufficient for approx. 1 million EVs	Capacity metric
Global Iron Ore Suppliers	Raw Material Input (2023 Import)	Total Iron Ore Imported (2023)	49 million dry metric tons	2023 Data
Global Coking Coal Suppliers	Raw Material Input (2023 Import)	Total Coal Imported (2023)	25 million wet metric tons	2023 Data

The company's reliance on external sourcing for primary inputs is substantial, though long-term contracts provide a degree of price stability, as seen with the reported Q4 price decline agreement.

• Factorial (US): Collaboration on all-solid-state battery material development, following successful testing of POSCO cathode material samples.
• Hazer Group: Extended MOU for clean hydrogen and low-emission graphite integration into low-carbon steelmaking processes.

Finance: draft 13-week cash view by Friday.

POSCO Holdings Inc. (PKX) - Canvas Business Model: Key Activities

You're looking at the core engine room of POSCO Holdings Inc. as of late 2025, focusing purely on what they actually do to make money and build their future portfolio. It's all about hard assets and production targets here.

Operating integrated steel mills (Pohang, Gwangyang)

The foundation remains the massive domestic steel operations. For the third quarter of 2025, POSCO reported crude steel production of 8.79 million mt, with finished steel sales reaching 8.24 million mt in that same period. The long-term ambition is to push global steel smelting capacity to 52 million tons per year by 2030, with overseas production targeted to double from 5 million tons/year in 2022 to 10 million tons/year by 2030. Significant capital is being deployed domestically to support this transition.

Metric	Value (Q3 2025)	Target/Context
Crude Steel Production	8.79 million mt	Q3 2025 volume
Finished Steel Sales	8.24 million mt	Q3 2025 volume
Investment in Pohang/Gwangyang (by 2030)	73 trillion won ($56 billion)	For environmental projects/production complexes.

Securing and processing global lithium and nickel resources

This is where POSCO Holdings is aggressively building its future materials moat. They are securing resources globally to feed their downstream processing in Korea. The Hombre Muerto Salt Lake in Argentina holds reserves estimated at 13,517K tons of Lithium Carbonate Equivalent (LCE). From Australian operations, they secure an annual off-take of 315,000 tons/year of Spodumene.

The processing side is ramping up in Gwangyang, with the Ore Lithium Plant (POSCO Lithium Solution) targeting an annual yield of 43K tons of lithium hydroxide. The brine lithium plant there targets an annual yield of 50K tons of lithium hydroxide across Phases 1 & 2 (25K tons each). The group has set capacity goals for 2026, aiming for 96,000 tons of lithium and 48,000 tons of nickel annually.

Expanding cathode and anode material production capacity

POSCO Future M is the key operational arm here, expanding capacity for both sides of the battery material equation. The overall group goal is to reach 395,000 tons of cathode and 114,000 tons of anode materials annually by 2026.

Specific capacity milestones for late 2025 include:

• Cathode capacity at Pohang targeting 106K tons/year.
• Cathode capacity at Gwangyang targeting 142.5K tons/year (90K tons base + 52.5K tons/year new plant).
• Anode capacity is set to more than double to over 18,000 tons by the end of 2025.

The anode business secured a major supply agreement worth 671 billion won ($470 million) with a US automaker. Furthermore, a 396 billion won investment was made to establish Carbon New Materials Co. to produce spherical graphite, aiming to replace Chinese imports.

Developing hydrogen-based steelmaking technology (HyREX)

The transition to low-carbon steel is a critical activity. POSCO Holdings is developing the proprietary HyREX, a hydrogen reduction ironmaking technology. The plan for 2025 included building a test plant for this technology. The ultimate goal in this area is to produce 10 million t/year of low-emission steel by 2030.

Global trading, logistics, and energy infrastructure projects

This segment, which includes energy, construction, DX, and logistics, is a significant profit contributor. For the first quarter of 2025, the infrastructure business sector posted an operating profit of 307 billion won, marking an increase of 181.7% compared to the prior quarter. POSCO International is also involved in building the supply chain for core EV components like drive motor cores.

POSCO Holdings Inc. (PKX) - Canvas Business Model: Key Resources

You're looking at the hard assets that power POSCO Holdings Inc. as of late 2025. These aren't abstract concepts; they are physical plants, secured resources, and proprietary tech that anchor the business.

Large-scale, integrated steel production facilities

POSCO Holdings operates major facilities, including the Gwangyang Works, which is central to its decarbonization strategy. The company is actively expanding capacity here with a focus on lower-emission methods.

• Construction started in February 2024 on a new Electric Arc Furnace (EAF) plant at Gwangyang Works with an annual capacity of 2.5 million tonnes per year.
• This EAF facility is targeted to commence operation in 2026.
• POSCO's Gwangyang mill ranked No. 1 globally in terms of CO2 emissions among steel mills in 2022.

Global resource assets: lithium salt lakes and nickel mines

POSCO Holdings is aggressively securing upstream materials for its energy materials segment, which it views as a core growth driver alongside steel. Here's a look at the latest resource moves as of November 2025.

Asset/Metric	Detail	Financial/Capacity Figure
Australia Lithium Investment (MinRes JV)	Acquisition of a 30% stake in an intermediate holding company.	KRW 1.1 trillion ($765 million) investment.
Secured Lithium Concentrate (Australia)	Annual supply from Wodgina and Mt. Marion mines.	270,000 tons of lithium concentrate annually.
Resulting Lithium Hydroxide Production	Annual output from refining secured concentrate.	Approximately 37,000 tons of lithium hydroxide annually, enough for about 860,000 EVs.
Argentina Lithium Acquisition (LIS)	Acquisition for footprint expansion in Hombre Muerto Salt Lake.	95 billion won.
Argentina Salt Lake Reserve (Hombre Muerto)	Total reserve estimate.	13,517K tons (LCE).
Target Capacity by 2026	Group-wide production goal for battery materials.	96,000 tons of lithium and 48,000 tons of nickel.

The company is also working on battery-grade nickel sulfate using ferronickel and a nickel sulfate refinery.

Proprietary GIGA Steel and HyREX low-carbon steel technology

The HyREX (Hydrogen Reduction) technology is central to POSCO Holdings' long-term plan to achieve zero carbon emissions in steel production by 2050. This is a fundamental shift from the existing BF-BOF (Blast Furnace-Basic Oxygen Furnace) method.

• Construction of a full-scale HyREX steel plant was planned to commence in early 2025.
• The initial full-scale plant is planned for a production capacity of 36 tons per hour.
• Completion of this initial full-scale HyREX plant is scheduled for 2027.
• A pilot project with Primetals Technologies, for equipment supply, has a capacity of 300,000 tons per year, with construction starting after 2030.
• The 2050 roadmap involves a transition from BF-BOF to 100% HyREX technology at Pohang and Gwangyang Works.

Subsidiaries like POSCO Future M and POSCO International

The subsidiaries are key resource generators, with POSCO Future M focusing on battery materials and POSCO International on energy and infrastructure. Here's a snapshot of recent performance and investment.

Subsidiary	Metric	2024 Full Year Data	Q1 2025 Data
POSCO Future M	Revenue	KRW 3.6999 trillion	N/A
POSCO Future M	Operating Profit	KRW 700 million	N/A
POSCO Future M	Investment in Ultium Chem (with GM)	N/A	KRW 489.4 billion ($342 million).
POSCO International	Operating Profit Driver	N/A	Increased profit driven by gas field sales.

POSCO Future M is the only company in Korea producing both cathode and anode materials simultaneously.

Capital investment of KRW 1.5 trillion in Q1 2025 CAPEX

The actual capital expenditure executed in the first quarter of 2025 demonstrates the immediate deployment of funds into the business structure.

• Consolidated Capital Expenditure (CAPEX) for Q1 2025 was KRW 1.5 trillion.
• The planned annual consolidated CAPEX for 2025 is set at KRW 8.8 trillion.
• The Q1 2025 CAPEX allocation breakdown included 43% for steel, 34% for energy materials, and 17% for infrastructure.

The company also generated cash through asset divestitures, raising KRW 286.6 billion in Q1 2025 from six completed projects.

POSCO Holdings Inc. (PKX) - Canvas Business Model: Value Propositions

The value propositions offered by POSCO Holdings Inc. center on providing foundational materials for modern industry while aggressively pivoting toward future-facing, low-carbon technologies and integrated supply chains.

High-strength, lightweight steel for advanced automotive use

POSCO Holdings Inc. delivers specialized steel products vital for the automotive sector, focusing on materials that enable vehicle lightweighting and enhanced safety. The company is actively securing future supply agreements, evidenced by the MOU signed with Hyundai Motor Group in the first quarter of 2025 concerning steel business cooperation. The core steel business remains the primary financial engine, contributing 52% (KRW 37.6 trillion) of the total revenue in the 2024 fiscal year, and 68% (KRW 1.5 trillion) of the operating profit for that same year. The company is also developing low-carbon options like Hyper NO, which are categorized as low-carbon emissions products for high-growth industries. POSCO Holdings' market capitalization stood at approximately KRW 22.4 trillion at the end of February 2025. The company's Q3 2025 cumulative CAPEX administered was KRW 4.8 tril on a consolidated basis.

Full-cycle battery material supply chain, from raw material to recycling

POSCO Holdings Inc. offers a complete, vertically integrated supply chain for rechargeable battery materials, which is a significant differentiator. This chain spans from securing raw resources, such as lithium ore procured by POSCO Pilbara Lithium Solution from Australia, through to the production of active materials and recycling via POSCO GS Eco Materials. POSCO Future M, the core subsidiary, operates eight plants globally dedicated to producing cathode and anode materials. The group made strategic capital injections in May 2025, approving equity investments of around 1 trillion won ($701 million) into three key battery affiliates to solidify this chain.

The planned capacity expansion highlights this commitment to the full cycle:

Material Type	Target Capacity (by 2026)	Domestic 2025 Capacity (Est.)	Key Location(s)
Cathode Active Materials (CAM)	395,000 tons	150,000 tons (Domestic total by 2025)	Gwangyang, Pohang, Gumi (Korea)
Anode Active Materials	114,000 tons	Not explicitly stated for 2025, but unique in Korea as a supplier	Sejong (Natural Graphite)

The Gwangyang precursor plant, completed in mid-2025, has an annual capacity of 45,000 tons, enough for approximately 500,000 electric vehicles, and is key to securing a China-free supply chain. The Pohang cathode plant alone is slated to augment its annual manufacturing capacity up to 60,000 tons by 2025.

Commitment to carbon neutrality by 2050 for green supply chains

POSCO Holdings Inc. has established a clear long-term goal to achieve carbon neutrality by 2050 through its Decarbonization Roadmap. This commitment is being backed by tangible facility investments, such as the construction of a new Electric Arc Furnace (EAF) facility at Gwangyang Works with an annual capacity of 2.5 million tons, targeting operational launch in 2026. The EAF method offers a reduction in carbon emissions by up to 75% compared to conventional blast furnace operations. For the near term, the company's roadmap includes a target to reduce greenhouse gas emissions by 37% by 2030 from 2021 levels. In 2024, the actual performance recorded was 71.1 million tons against a target of 75.7 million tons.

Stable, customized supply of premium materials to top global automakers

The value proposition includes providing a stable and customized supply of high-specification materials, particularly for the electric vehicle market. POSCO Future M is focusing on upgrading its cathode products to high-nickel NCM and NCMA, with development of a 96% Ni content product slated for pilot production in the latter half of 2024. The company's ability to supply both cathode and anode active materials uniquely positions it to serve top-tier global automakers. The Gwangyang precursor facility is specifically designed to produce precursors for export to Ultium Cells LLC, the joint venture with General Motors Co. in the U.S.

Diversified business portfolio across steel, materials, and infrastructure

POSCO Holdings Inc. mitigates risk and captures growth through a diversified structure encompassing Steel, Rechargeable Battery Materials (RBM), and Infrastructure. The Q1 2025 consolidated sales were 17.437 trillion won, with the Infrastructure business sector achieving an operating profit of 307 billion won in that quarter, representing an increase of 181.7% compared to the previous quarter, driven by gas field sales at POSCO International. The RBM business saw anode material sales volume increase as customers diversified supply chains in Q1 2025.

Here's a look at the Q1 2025 financial contribution to consolidated revenue (based on one reported figure):

Business Segment	Q1 2025 Revenue (KRW billion)	Q1 2025 Operating Profit (KRW billion)
Steel (POSCO)	Approx. 14,202 (Q3 2025 figure, using as proxy for segment scale)	450 (Q1 2025, based on 450 billion won increase over prior quarter)
Infrastructure (POSCO International, E&C, etc.)	Not explicitly segmented in revenue for Q1 2025	307
Rechargeable Battery Materials (RBM)	Not explicitly segmented in revenue for Q1 2025	Operating loss decreased from previous quarter

The company is actively managing its portfolio, having completed 7 projects in asset restructuring by Q3 2025, generating KRW 400 billion in cash.

POSCO Holdings Inc. (PKX) - Canvas Business Model: Customer Relationships

You're looking at how POSCO Holdings Inc. maintains its crucial relationships with its diverse customer base as of late 2025. It's not just about shipping steel anymore; it's about deep integration into future-facing supply chains, especially in mobility.

Dedicated R&D collaboration with key automotive clients

POSCO Holdings Inc. is actively cementing relationships with future mobility leaders through its subsidiary, POSCO Future M. This involves direct, technology-focused partnerships. For instance, in December 2025, POSCO Future M signed a Memorandum of Understanding (MOU) with U.S.-based Factorial to cooperate on developing materials for all-solid-state batteries (ASSB). Factorial already has commercial partnerships with global automotive leaders like Mercedes-Benz, Stellantis, Hyundai Motor Company, and Kia Corporation. This collaboration is designed to leverage POSCO Future M's competitiveness in cathode and anode materials with Factorial's battery cell technology.

The focus here is on securing future demand by developing customized products. POSCO Future M is working to build a product portfolio that covers entry-level, standard, and premium electric vehicles segments.

• Cooperation on next-generation all-solid-state battery materials.
• R&D on cathode materials for ASSB and silicon anode materials is ongoing.
• Group-level R&D continues for lithium metal anode materials and sulfide-based solid electrolytes.

Long-term supply contracts for high-margin steel and materials

Securing raw material supply through long-term contracts is a bedrock for POSCO Holdings Inc.'s stability, which directly impacts its ability to promise consistent supply to its industrial customers. These contracts often feature periodic price adjustments based on the market, which helps manage margin volatility.

Here's a look at some of the material commitments as of mid-2025. Remember, these figures represent the remaining volume under contract, not new orders.

Material	Remaining Volume (as of June 30, 2025)	Remaining Volume (as of March 31, 2025)
Iron Ore	64 million tons	76 million tons
Coal	17 million tons	5 million tons

Also, for its infrastructure segment, POSCO International Corporation has a long-term power supply and demand contract for electricity from its Indonesian Combined Cycle Power Plant, with expiration dates set for February 28, 2039, and March 31, 2039, for Units 1 and 2, respectively.

Professional B2B sales and technical support for industrial clients

For its core industrial clients, POSCO Holdings Inc. relies on robust sales performance and an understanding of modern B2B buying behavior. The company reported consolidated sales of 17.437 trillion won for the first quarter of 2025, achieving an operating profit of 568 billion won. Within the steel business specifically, operating profit reached 450 billion won, marking a 34.7% increase compared to the prior quarter (Q4 2024), driven by sales price increases and cost reduction efforts.

To effectively engage these industrial buyers, POSCO Holdings Inc. must navigate complex decision-making units. Industry data suggests that B2B decision-makers use an average of 10 distinct channels to interact with suppliers. This means technical support and sales outreach must be coordinated across multiple touchpoints, definitely requiring strong CRM integration.

Investor relations and transparent ESG reporting for shareholders

Shareholders expect clear communication on long-term strategy and risk management, which POSCO Holdings Inc. addresses through its annual sustainability reporting. The 2024 POSCO Holdings Sustainability Report, released in July 2025, details its 'two core + new growth engine' strategy, measuring progress through an Environmental, Social, and Governance (ESG) perspective. The report aligns with the Global Reporting Initiative (GRI) Standards and reflects the Sustainability Accounting Standards Board (SASB) standards for iron and steel producers.

The company emphasizes building a cooperative ecosystem with stakeholders and developing sustainable supply chain policies. For transparency, the ESG Factbook for 2024 includes data from POSCO's domestic worksites and 11 overseas subsidiaries. External validation is also key to investor confidence:

• Received a rating of 1 across all QualityScore pillars by ISS ESG in January 2024.
• Recognized as an Industry Top Rated company by Sustainalytics in January 2024.
• Received an overall A+ ESG rating (A in Environmental / A+ in Social / A+ in Governance) from the Korea Institute of Corporate Governance and Sustainability in October 2023.

Finance: draft the 13-week cash view by Friday.

POSCO Holdings Inc. (PKX) - Canvas Business Model: Channels

Direct sales force to major industrial and construction customers.

POSCO Holdings Inc. moved KRW 72.688 trillion in consolidated sales in 2024, indicating the scale supported by its direct sales infrastructure. The steel business, which is a core part of the direct sales channel, recorded an operating profit margin ratio of 5.7% in Q2 2025. The company plans to secure global business opportunities by expanding investments in high-growth, high-profit markets such as North America. POSCO Holdings recorded Q3 2025 revenue of KRW 17.261 trillion. This channel supports the core steel business, which saw a 4% year-over-year increase in sales volume in Q2 2025.

Global trading network via POSCO International subsidiary.

POSCO International Corporation's trading operations are significant, with sales arising from export transactions and triangular transactions accounting for 86% of the Group's total sales as of December 31, 2024. The infrastructure business, which includes POSCO International's energy value chain expansion, posted an operating profit of KRW 307 billion in Q1 2025, marking an increase of 181.7% compared to the previous quarter. POSCO International has set a target to double its shareholder return ratio to 50% starting from 2025, up from 25% previously.

The operational performance of POSCO International's key segments in Q1 2025 included:

• Operating Profit Ratio: 3.3% for Materials, etc.
• Operating Profit Ratio: 3.3% for Energy.

Overseas processing centers (e.g., North America) for localized supply.

POSCO Holdings Inc. maintains processing centers in North America and Mexico to provide localized supply, particularly for the automotive steel market. The capacity figures for these centers as of early 2025 are detailed below.

Processing Center Location	Subsidiary/Affiliate	Processing Capacity
McCalla, US	POSCO-AAPC	160Kt
Puebla, Mexico	POSCO-MPPC	630Kt
Villagran, Mexico	POSCO-MVWPC	25Kt

Joint ventures and direct equity stakes in resource projects.

The company utilizes equity stakes and joint ventures to secure raw materials, such as lithium. POSCO Holdings announced investment plans of KRW 1.1 trillion to secure quality lithium resources in Australia and Argentina. This investment aims to secure 270,000 tons annually of lithium concentrate, which is enough for approximately 37,000 tons of lithium hydroxide, sufficient for about 860,000 electric vehicles. The Indonesian joint venture, PT. Krakatau POSCO, has an annual production capability of 3 million tons of steel.

Summarized financial information for select foreign joint ventures as of the three-month period ended March 31, 2025, shows the scale of operations flowing through these channels:

Foreign Joint Venture	Assets (W million)	Sales (W million)	Net Income (W million)
Roy Hill Holdings Pty Ltd	W. 10,751,129	W. 1,724,530	W. 432,223
South-East Asia Gas Pipeline Company Ltd	W. 1,615,842	W. 125,856	W. 68,432
9404-5515 Quebec Inc.	W. 1,650,839	-	W. 25,818

The infrastructure business segment, which includes energy and construction, saw its operating profit reach KRW 307 billion in Q1 2025. The company is completing restructuring projects, targeting a cumulative cash generation of KRW 2.1 trillion by the end of 2025 from 106 projects.

POSCO Holdings Inc. (PKX) - Canvas Business Model: Customer Segments

You're looking at the core groups POSCO Holdings Inc. serves, which is how they turn their massive material production into actual revenue. It's a mix of traditional heavy industry and the new energy transition.

Global Automotive Manufacturers (OEMs) requiring advanced steel.

This segment relies on POSCO Holdings Inc.'s high-grade steel products. The relationship is being reinforced through strategic alliances, such as the one announced with Hyundai Motor Group for future mobility areas, which includes steel supply. For the second quarter of 2025, POSCO's finished steel sales rose by 3.9 percent year on year to 8.17 million mt. However, the first quarter of 2025 showed final steel sales at 8.15 million tons, a slight dip of 0.9 percent year-on-year. Crude steel production for Q2 2025 was 8.37 million mt.

Secondary Battery and Cell Manufacturers (EV and ESS).

This is the high-growth area, driven by POSCO Future M Co. The company is aggressively targeting this market. POSCO Holdings Inc. has a goal of achieving 62 trillion won in sales from secondary battery materials by 2030. For 2026, the annual sales target was set at 11 trillion won for materials like cathode, anode, lithium, and nickel. To support this, POSCO announced plans in November 2025 to invest KRW 1.1 trillion to secure raw materials, which will provide a stable annual supply of 270,000 tons of lithium concentrate. This amount is enough to produce approximately 860,000 electric vehicles. The planned 2026 production capacity includes 395,000 tons of cathode and 114,000 tons of anode. The operating loss in the energy materials business widened quarter-over-quarter in Q2 2025 due to decreased cathode materials sales.

Major Construction and Civil Engineering Companies.

This segment falls under the Infrastructure business, which has seen some volatility. In the second quarter of 2025, operating profit for the infrastructure business slumped 46 percent year-on-year. This was partly due to POSCO E&C swinging to a loss from additional costs on overseas projects. To give you a contrast, in the first quarter of 2025, the infrastructure sector actually posted an operating profit of 307 billion won, which was a significant increase of 181.7 percent compared to the previous quarter. POSCO Holdings Inc. aims to complete 106 projects by the end of 2025 to generate a cumulative cash inflow of KRW 2.1 trillion from restructuring low-yield businesses.

Energy and Power Generation Companies (LNG, power plants).

POSCO Holdings Inc. serves this segment through its energy value chain expansion, particularly via POSCO International. A key area is supplying advanced steel for Liquefied Natural Gas (LNG) infrastructure. POSCO is using its cryogenic high manganese steel for LNG storage, which is about 30 percent cheaper than the conventional 9 percent nickel steel. The high manganese steel contains 22.5 to 25.5 percent manganese. The improved performance in the power generation sector contributed to the infrastructure business's Q1 2025 operating profit.

Shipbuilders and Heavy Equipment Manufacturers.

This group is a direct consumer of specialized steel products, like the high manganese steel developed for LNG carriers. POSCO Holdings Inc. secured the implementation of this material with Hanwha Ocean, formerly Daewoo Shipbuilding & Marine Engineering. The high manganese steel offers superior strength and elongation compared to traditional materials.

Here's a quick look at some of the key financial and operational metrics relevant to these customer groups as of mid-to-late 2025:

Customer Segment Focus	Metric	Value / Target	Period / Context
Secondary Battery Materials	2030 Sales Target	62 trillion won	By 2030
Secondary Battery Materials	Secured Lithium Concentrate	270,000 tons annually	From Wodgina and Mt. Marion mines
Secondary Battery Materials	Planned Cathode Production Capacity	395,000 tons	By 2026
Global Automotive (Steel)	Finished Steel Sales Volume	8.17 million mt	Q2 2025, YoY increase of 3.9 percent
Construction/Infrastructure	Infrastructure Sector Operating Profit	307 billion won	Q1 2025
Construction/Infrastructure	Infrastructure Sector Profit Change	Increase of 181.7 percent	Q1 2025 vs. previous quarter
Energy (LNG)	High Manganese Steel Cost Advantage	About 30 percent cheaper	Compared to 9 percent nickel steel

You'll want to watch the steel sales volume closely, as it's the bedrock of the business, even as the battery materials segment scales up toward its 11 trillion won annual sales goal by 2026. Finance: draft 13-week cash view by Friday.

POSCO Holdings Inc. (PKX) - Canvas Business Model: Cost Structure

The cost structure for POSCO Holdings Inc. is heavily influenced by the procurement of primary inputs for its core steel business and massive capital outlays for its future-facing energy materials segment.

The cost of raw materials remains a significant variable. For the core steel business, key raw material costs for carbon steel showed a slight decrease, moving from an index of 100 in Q4 2024 to 99 in Q1 2025. The company is actively managing this through strategies like retiring older blast furnaces, with the Pohang No. 2 furnace potentially closing or revamping as early as 2025. The overall strategy includes securing a technology pathway to manage raw material risks, such as through R&D on hydrogen-reduced iron ore.

Capital Expenditure (CAPEX) for the green transition and new facilities is substantial. POSCO Group has committed to spending KRW 121 trillion (approximately $92.6 billion) globally by 2030, with KRW 73 trillion earmarked for domestic businesses. The planned consolidated CAPEX budget for the full year 2025 was set at KRW 8.8 trillion, of which KRW 1.5 trillion was executed in Q1 2025 on a consolidated basis.

The push for technological superiority drives R&D spending. Data for the twelve months ending June 30, 2025, indicates Research and Development Expenses were reported as $0M, representing a 0% year-over-year change. This R&D is integrated into the overall investment plan, with a portion of the 2025 CAPEX allocated to R&D activities.

For the mainstay steel business, cost-cutting and efficiency improvements have already yielded results, creating an additional revenue/cost benefit by a combined KRW 230 billion since Chairman Chang took the helm (as of July 2024). The company has an operational cost savings target of over KRW 1 trillion annually in steel, which is a key driver for facility rationalization.

A major financial commitment in 2025 was the strategic investment into the battery materials sector to navigate the electric vehicle market slowdown. POSCO Holdings approved a total investment of KRW 922.6 billion in its three key battery material affiliates through capital increases in May 2025. This capital injection aims to secure future competitiveness and improve financial structures.

Here is the breakdown of the KRW 922.6 billion investment into battery material affiliates in 2025:

Affiliate	Investment Amount (KRW billion)	Investment Amount (USD million)
POSCO Future M Co.	525.6	(Implied from total)
POSCO Pilbara Lithium Solution	328.0	(Implied from total)
POSCO GS Eco Materials	69.0	(Implied from total)
Total Investment	922.6	633

The allocation of the 2025 CAPEX budget of KRW 8.8 trillion shows the strategic priorities:

• Steel: 41%
• Energy Materials: 38%
• Infrastructure: 19%
• R&D: 2%

The investment in the Energy Materials segment, which includes battery materials, is a significant portion of the total planned CAPEX for 2025.

POSCO Holdings Inc. (PKX) - Canvas Business Model: Revenue Streams

The revenue streams for POSCO Holdings Inc. are fundamentally anchored in its legacy steel operations but are increasingly diversified by its strategic pivot into future growth engines like energy materials and infrastructure services. You see the core business still driving the bulk of the top line, but the newer segments are showing significant operational improvements, which translates to future revenue potential.

Sales of steel products, including plates, wire rods, and hot/cold rolled steel, remain the primary revenue driver for POSCO Holdings Inc. This segment is the bedrock of the company's financial performance. For instance, in Q1 2025, the steel business operating profit reached KRW 450 billion, marking a 34.7% increase compared to the previous quarter, driven by sales price increases and cost reduction efforts. The company is also focusing on expanding investments in high-growth markets like India and North America for its steel products.

The next major component is revenue from secondary battery materials, now officially termed the Energy Materials segment following an internal reorganization in January 2025. This area includes sales of cathode and anode materials, as well as lithium hydroxide. While this segment continued to incur operating losses in Q1 2025 due to new plant ramp-ups and lithium business profitability challenges, POSCO Future M expanded sales of high-nickel cathode materials, and anode material sales volume increased as customers diversified supply chains. POSCO Holdings has a stated goal of achieving annual sales of 11 trillion won from battery materials by 2026.

Revenue from infrastructure is a growing stream encompassing several sub-businesses. This includes revenue from trading commissions and construction contracts managed through subsidiaries like POSCO International and POSCO E&C. The infrastructure business sector showed quite solid performance in Q1 2025, with operating profit reaching KRW 307 billion, which was a substantial 181.7% increase from the prior quarter.

Finally, there is revenue derived from energy sales, primarily from POSCO International's gas field operations and power generation activities, which contribute to the Infrastructure segment's overall results. Increased gas field sales at POSCO International and improved performance in the power generation sector were key drivers in the infrastructure segment's Q1 2025 operating profit surge.

To give you a clearer picture of the scale and segment focus based on the most recent reported period, here is a look at the consolidated revenue and the Q1 2025 operating profit contributions across the key areas. Remember, the revenue figures are based on the consolidated top line, and the segment data below reflects operating profit, which shows where the profitability was concentrated early in 2025.

Financial Metric	Amount (KRW)	Period/Context
Consolidated Revenue	17.437 trillion	Q1 2025
2024 Consolidated Sales	72.688 trillion	Full Year 2024
Steel Segment Operating Profit	450 billion	Q1 2025
Infrastructure Segment Operating Profit	307 billion	Q1 2025
Energy Materials Segment Operating Result	Operating loss reduced by half Q-o-Q	Q1 2025
Energy Materials Annual Sales Target	11 trillion (by 2026)	Future Goal

You can see the concentration of operating profit in Q1 2025 was heavily weighted toward the traditional steel business, even as the infrastructure segment delivered a massive sequential improvement. The energy materials business is still in an investment/ramp-up phase, meaning its revenue contribution is currently smaller than its long-term strategic importance suggests.

Here are the key revenue-related activities POSCO Holdings Inc. is focused on:

• Sales of plates, wire rods, and hot/cold rolled steel products.
• Expansion of high-nickel cathode and anode material sales.
• Securing revenue from POSCO International's gas field sales.
• Generating income from POSCO E&C construction contracts.
• Trading commissions generated through logistics and trading arms.

The consolidated Q1 2025 revenue came in at KRW 17.437 trillion. This figure represented a decrease of approximately 2.1% compared to the previous quarter (Q4 2024). For context, the full-year 2024 consolidated sales were KRW 72.688 trillion.

Finance: review Q2 2025 segment operating profit data against the Q1 2025 figures by next Tuesday.