Posco Future M Wins KRW1.074 Trillion LFP Cathode Material Supply Contract

POSCO Holdings (PKX) is investing KRW 480 billion to build a new galvanizing plant in South Korea, expanding automotive steel capacity by 450,000 MT annually. The facility, set to open in 2028, will focus on premium automotive steel and integrate AI, robotics, and lower-carbon production technologies. This investment aims to meet automaker demand for high-quality steel for larger, premium vehicles and strengthen POSCO's competitiveness in next-generation automotive materials.

POSCO Future M signed a ₩1.0742 trillion ($790.7M) deal with SK On to supply LFP cathode materials for 2027-2029, extendable to 2031. This completes alliances with all three major South Korean battery makers. Materials will be used in U.S. ESS batteries, supporting SK On's non-Chinese supply chain for U.S. tax credits. POSCO Future M plans to expand LFP production and secure lithium from Argentina.

Posco Holdings (PKX, 005490.KS) plans to invest KRW 480 billion to build a new automotive steel line in South Korea, increasing its annual production capacity to 4.95 million metric tons by 2028. The project aims to produce lower-carbon steel sheets, supporting demand for larger and greener vehicles. Shares are down 1.86% on the Korean Stock Exchange.

POSCO Holdings (PKX) shares fell during regular trading but rebounded in after-hours. The initial drop came despite positive news from its 2026 forum, suggesting investors had already priced in optimism. Later, a $19 billion Kazakhstan agreement and a favorable court ruling drove the recovery. Long-term growth is tied to lithium, energy, and rare-earth materials, but risks include heavy spending and weak free cash flow.

POSCO International, a unit of South Korean steel company POSCO, agreed to buy Chord Energy's non-operated Marcellus assets in northeast Pennsylvania for $550 million. The deal includes 32,000 net acres and production of 121 MMcf/d of dry gas. Chord Energy acquired the assets through its purchase of Enerplus in 2024.

Chord Energy (CHRD) agreed to sell its Marcellus position to POSCO International for $550M, expected to close in Q4. The deal includes 32k net acres and 121 MMcfpd production. Proceeds will reduce leverage and focus operations in the Williston Basin. Chord expects updated guidance in Q3 earnings. Advisors included Moelis, RBC, and Orrick.