POSCO Holdings will invest about 1 trillion won in the capital increase of three secondary battery material companies, including POSCO FUTURE M.
On the 13th, POSCO Holdings held a board meeting and decided to participate in the capital increases of POSCO FUTURE M, POSCO Filbara Lithium Solutions, and POSCO GS Eco Materials with 525.6 billion won, 328 billion won, and 69 billion won, respectively.
Earlier, POSCO FUTURE M held a board meeting in the morning and decided on a total shareholder allocation capital increase of 1.1 trillion won to secure future growth drivers.
The funds raised through this capital increase will be used for investments to expand the production capacity of domestic and overseas positive and negative electrode materials, including a joint plant for cathode materials in Canada and the expansion of plants in Pohang and Gwangyang.
POSCO Filbara Lithium Solutions and POSCO GS Eco Materials, which are in charge of the core materials and supplies like lithium and battery recycling business, respectively, plan to improve their financial structure with the funds raised.
POSCO Filbara Lithium Solutions is a joint venture established by POSCO Holdings and Filbara Minerals, holding 82% and 18% stakes, respectively. It imports Australian lithium ore into the country to produce lithium hydroxide for secondary battery materials.
POSCO GS Eco Materials is the holding company of POSCO HY Clean Metal, a secondary battery recycling company, with POSCO Holdings and GS Energy holding 51% and 49% equity, respectively.
Chang In-hwa, chairman of the POSCO Group, visited the joint cathode production company 'Ultium Cells' between POSCO FUTURE M and GM in Quebec, Canada, on the 29th of last month (local time) to monitor the current status of the global secondary battery material business.
Chairman Chang noted, "In the rapidly changing international situation, please ensure thorough management of construction periods and perfect operational preparation, and I expect this will serve as a bridgehead for entering the North American market in line with the revival of the secondary battery materials market."