Latest news with #PoscoHoldings
Korea Herald
2 days ago
- Business
- Korea Herald
Trump's 50% steel tariff deals blow to Korean exporters
New US levy threatens 13% of Korea's steel exports, prompting emergency talks in Seoul In yet another tariff storm last week, US President Donald Trump shocked the world once more with plans to double tariffs on imported steel and aluminum from 25 percent to 50 percent, starting Wednesday. Speaking from a US Steel mill in the Pittsburgh suburbs, Trump described the move as a deal that would 'secure' the American steel industry, one that 'nobody's going to get around.' The tariff escalation is set to deliver another major blow to Korean exporters, the fourth-largest steel supplier to the US. In 2024, exports to the US accounted for 13 percent of Korea's total steel exports. 'At a time when exports to the US are barely holding up following the 25 percent tariff, an additional 25 percent will severely undermine the competitiveness of Korean companies,' said an industry insider. In response, Korean trade officials and steelmakers, including Posco Holdings and Hyundai Steel, gathered Monday for an emergency meeting convened by the Ministry of Trade, Industry and Energy in Seoul to assess the fallout. The agenda centered on evaluating the potential impact of the tariff hike on the industry and formulating future response strategies. While closely monitoring the situation through its networks with US diplomatic offices and the US subsidiaries of Korean companies, the ministry has pledged to implement swift responses to 'minimize' the impact on Korea's steel sector. Some analysts, however, suggest the damage may be limited. According to a Seoul-based market researcher at Daol Investment & Securities, even after the initial 25 percent tariff, US prices for hot-rolled steel remained high. 'The full impact of the new hike depends on how much US steel prices rise in response,' the researcher said. That, in turn, may increase the competitive edge of companies like Hyundai Steel. The company is committed to a $5.8 billion investment plan to build an electric arc furnace-based integrated steel mill in Louisiana by 2029, in partnership with Posco Group. The tariff hike comes amid the US push to bolster its domestic steel industry, which constitutes the backbone of the nation, according to Trump. Trump recently endorsed US Steel's $14 billion acquisition by Japan-based Nippon Steel, a deal he had previously opposed on national security grounds. He said the partnership would create and save more than 100,000 jobs while keeping the American steelmaker under US control, though few details have been disclosed. Although the Court of International Trade ruled last week against Trump's tariffs under the International Emergency Economic Powers Act, potentially hindering his use of punitive levies, it has no bearing on steel and aluminum tariffs. Those instead fall under Section 232 of the Trade Expansion Act, which authorizes tariffs on national security grounds.
Korea Herald
5 days ago
- Business
- Korea Herald
Posco opens minerals lab in Australia
Posco Holdings, the holding company of Korean steel giant Posco Group, said Friday it has opened a key minerals research center in Australia to secure a technological edge in advanced materials, spanning steelmaking, battery materials and rare earths. According to the group, the new launch underscores its commitment to localization strategies, designed to not only secure raw materials cost-effectively, but also advance low-carbon processing technologies. Located in Perth, the center will focus on developing low-carbon steelmaking and cost-reduction technologies for lithium and nickel. It will also pursue rare earths supply chain development and high-efficiency refining technologies. This marks the first time a Korean company has established an on-site resources facility at a site sourcing raw materials, the company explained. 'Since 1971, when Posco first imported Australian iron ore, the company has built strong trust and collaboration with the Australian government and industry, emerging as a global top-tier materials company in steelmaking and battery materials,' said Chair Chang In-hwa at the opening ceremony in Perth on Friday, which was attended by executives from Australian resource companies, as well as representatives from local academic and research institutions. 'This center, combining Australia's rich resources with the group's materials technology expertise, will serve as a hub for advancing mineral processing technologies and securing critical minerals,' Chang added. The new facility brings the group a step closer to the Chang's goal of integrating technology and business strategy across the full spectrum of operations, from research and development to production and sales. The group said it will continue exploring next-generation minerals and pursuing local mining investments through partnerships. Since the early 1980s, Posco has worked closely with Australian partners to build supply chains for key minerals. The company has participated in the development of the Roy Hill iron ore mine and currently operates a joint venture with Australian lithium mining company PLS to produce lithium hydroxide for secondary battery materials.
Korea Herald
27-05-2025
- Automotive
- Korea Herald
Posco Future M advances LMR cathodes to rival China's LFP dominance
Posco Future M announced Tuesday that it has completed the development of lithium manganese-rich (LMR) cathode materials for electric vehicle batteries, which it hopes will be a competitive alternative to Chinese products. The company recently received approval from its primary clients — mainly battery manufacturers — to prepare for mass production, following inspections of equipment operation, safety, and environmental standards in the LMR manufacturing process. It aims to secure mass production capabilities within this year. While the exact production location remains undisclosed, Posco Future M emphasized that it will utilize its existing nickel, cobalt and manganese (NCM) cathode production lines to ensure a timely supply for clients. The company currently operates three manufacturing bases in Gwangyang, South Jeolla Province, Pohang, North Gyeongsang Province, and Sejong. In collaboration with the research institute of its parent company, Posco Holdings, Posco Future M has steadily improved the energy density, charge-discharge performance, and stability of LMR cathodes, achieving successful pilot production last year. LMR cathodes are considered a potential game-changer for batteries used in entry-level and standard EVs. They are attracting attention from global automakers seeking alternatives to China's lithium iron phosphate batteries as carmakers face growing pressure to decouple their supply chains from China in order to meet US regulatory requirements. Posco Future M highlighted that LMR batteries offer competitive pricing compared to LFP batteries, while delivering 33 percent higher energy density. This cost efficiency is made possible by significantly reducing the use of expensive materials like cobalt and nickel, and instead increasing the proportion of more affordable manganese. The company also plans to expand its LMR product portfolio by developing next-generation cathode materials with even higher energy capacity, with the goal of serving not only entry-level EVs but also premium and large-size EV markets. 'Although LMR cathode materials have long been recognized for their potential, commercialization was hindered by challenges related to lifespan,' said Hong Hyung-jun, director of the Posco Future M Technology Research Center. 'However, significant R&D progress has been made. We are now ready to launch products that combine affordability with high energy density, working closely with our trusted partners.' Meanwhile, General Motors has announced plans to launch EVs equipped with LMR batteries by 2028. Ford Motor Company is also targeting LMR battery commercialization before 2030 and is currently conducting pilot production of advanced LMR cells.
Korea Herald
29-04-2025
- Business
- Korea Herald
Posco Holdings issues $700m in global green bonds
Posco Holdings announced on Tuesday that it had successfully raised $700 million through the issuance of global green bonds in the overseas bond market, securing a stable source of funding for the company's future growth initiatives. Despite challenging market conditions driven by increased volatility following the US Trump administration's recent tariff announcement, Posco Holdings became the first Korean company to successfully issue both five-year and ten-year bonds. The issuance comprises $400 million in five-year bonds and $300 million in ten-year bonds. It also marks the company's first global bond issuance since its transition to a holding company structure in 2022. Green bonds are used to finance environmentally sustainable projects such as electric vehicles, renewable energy and energy efficiency improvements. Posco Holdings intends to use the proceeds from this issuance to support its energy materials business. Regionally, 64 percent of the bonds were allocated to Asian investors, 15 percent to European investors and 21 percent to investors in the US. By investor type, asset management firms received 71 percent of the allocation, banks 13 percent and insurance companies and other investors 16 percent. The participation of major global insurers and asset managers not only broadened Posco Holdings' investor base but also underscored strong investor confidence, despite concerns about the steel and energy materials sectors amid US trade policy uncertainties, the company announced. In March, global credit rating agencies S&P and Moody's reaffirmed Posco Holdings' bond ratings at 'A-' and 'Baa1,' respectively, citing the company's solid financial health.
TimesLIVE
22-04-2025
- Automotive
- TimesLIVE
Hyundai and Posco agree to cooperate on US steel plant
South Korea's Hyundai Motor Group said on Monday it has signed a memorandum of understanding with Posco Holdings for cooperation on its planned US steel plant. Posco will make an equity investment in Hyundai Motor Group's steel factory project in Louisiana, the group said in a press release. The steelmaker was also considering selling some of the steel to be produced from the factory. Production is slated to begin in 2029. The South Korean automaker announced plans to invest $21bn (R392,229,595,800) in the US with President Donald Trump at the White House last month. In a regulatory filing, Hyundai Steel said it would invest $5.8bn (R108,335,885,800) along with Hyundai Motor Group to build a steel plant in Louisiana with an annual capacity of 2.7 million tonnes.
