POSCO FUTURE M noted on the 3rd that its performance last year had provisional sales of 3.6999 trillion won and an operating profit of 700 million won. Compared to the previous year, sales fell by 22.3%, and operating profit decreased by 98%. The company's performance deteriorated as the battery materials business recorded sales of 2.3399 trillion won and an operating loss of 36.9 billion won.
Looking only at the performance for the fourth quarter of last year, sales amounted to 723.2 billion won, with an operating loss of 41.3 billion won. Compared to the same period last year, sales declined by 36.9%, while the loss margin decreased by 44%.
POSCO FUTURE M explained, "Despite slight increases in sales of high-nickel products, which are high-value-added products, due to the rise in global electric vehicle sales and the start of product supply for new electric vehicle models, sales prices fell significantly due to the decrease in prices of key raw materials such as lithium and nickel. An evaluation loss of 43.6 billion won due to some unusable products and raw material inventory also contributed to the decline in revenue."
Last year, sales in the institutional sector for anode materials recorded 154.3 billion won, a decrease of 30.4% compared to the previous year, while operating profit turned to a loss. Sales decreased due to aggressive competition from low-priced Chinese products in the natural graphite anode material sector, along with a drop in the price of graphite, the raw material. The artificial graphite anode material sector also reflected inventory evaluation losses due to high manufacturing costs during the initial phase of operations.
In the basic materials business, sales reached 1.36 trillion won, with an operating profit of 37.6 billion won. Although profits increased due to the rise in furnace repairs, profitability decreased in the case of refractories and lime due to rising fixed costs.
POSCO FUTURE M announced that it would enter an emergency management system. As global policy uncertainties grow, including a dip in market demand and the inauguration of a new administration in the United States, the company plans to secure business competitiveness and prepare for future growth through proactive crisis management.
Um Gi-cheon, president of POSCO FUTURE M, urged executives on the 17th of last month to focus on strengthening manufacturing competitiveness and securing innovative operating capabilities, while continuously reviewing investment projects to prepare for the company's future but also methodically adjusting non-core assets and thoroughly examining major management agendas from the perspective of securing profitability.
POSCO FUTURE M plans to diversify its product portfolio along with productivity innovation and enhanced research and development. In addition to high-nickel positive electrode materials, the company aims to develop mid-nickel, high-manganese, and lithium iron phosphate positive electrode materials, focusing on middle-to-low-priced new products. Furthermore, it plans to secure a competitive edge in the global market by developing high-value-added products such as low-expansion natural graphite anode materials and high-capacity silicon-carbon composite anode materials.
In addition, the company plans to proactively respond to customer demand by developing solid-state battery positive electrode materials, dry electrode positive electrode materials, and lithium-metal anode materials. A company official noted, "For the solid-state battery positive electrode materials, we are conducting tests with more than three domestic and international customers aiming for mass production in 2028, and we are also proceeding with customer testing for dry electrode positive electrode materials and lithium-metal anode materials for mass production in 2028."