POSCO Holdings Secures US$700 Million International Financial Institution Credit Facility for Argentina Lithium Business, Accelerating Project Development

Posco will use BHP's iron ore to test its HyRex hydrogen-based DRI technology at a 300,000 tonne/year demo facility in Pohang. The firms aim to advance R&D beyond resource trade, following an earlier MOU. The project, initially planned for 2028, could offer a decarbonization route for steel, despite high costs deterring some major players.

POSCO and its largest union failed to reach an agreement, leading to the termination of mediation. The union now has the legal right to strike, which would be the first in the company's 58-year history. The main issues are wage increases and compensation, with the union demanding a 7.1% base salary increase and POSCO offering 1.5%. A strike could impact major industries, but further negotiations may still prevent it.

POSCO E&C won a $1.1B contract to build two LNG tanks in Thailand, securing half of the market. The company's 'POSCO-style EPC' model and in-house commissioning capability were key factors. Construction is ahead of schedule, and the company aims to bid on additional LNG tank tenders. POSCO E&C also engages in community contribution activities in the region.

POSCO Future M agreed to supply a major Korean battery maker with over 190,000 metric tons of LFP cathode materials from 2027-2032 under a long-term deal, with contract terms to be finalized in Q3. The company plans to improve cost competitiveness using POSCO Group inputs, is certifying LFP prototypes and targets mass production by year-end, and is negotiating additional supply deals.

POSCO Holdings said Aug. 7 it will raise about 2.4817 trillion won by selling about 20.7% of POSCO International shares (36,434,963 shares) for 2.0185 trillion won and about 23.5% of POSCO DX shares (23,385,917 shares) for 481.75 billion won. Sales are set for Sept. 7, with stakes falling to 50% in each. POSCO plans 3-year price return swap contracts tied to base prices.

POSCO Holdings reported Q2 2026 consolidated revenue of KRW 19.3 trillion and operating profit of KRW 819 billion, up from the prior quarter, according to management. Rechargeable battery materials swung to a surplus for the first time in nine quarters, driven by Argentina lithium. Steel operating profit rose to KRW 274 billion. The company reiterated restructuring and CapEx plans.