13-05-2025
Posco Future M to raise W1.1tr for battery expansion
Posco Future M, a battery materials unit affiliated with steelmaking giant Posco Group, announced Tuesday that its board of directors has approved a rights offering to raise 1.1 trillion won ($771 million), aiming to expand its production base in preparation for anticipated growth in electric vehicle battery demand.
According to the company's filing, Posco Future M plans to issue 11,483,000 new shares in July. The funds raised from the new share issuance will be allocated to key areas: 181 billion won for facility investment, 288.3 billion won for operational costs, and 630.7 billion won for acquiring securities of other companies.
The capital will be used to enhance and expand production capacity in both Korea and North America, with all funds planned to be utilized by 2026, the company said.
Notably, 353.4 billion won, categorized under the securities acquisition budget, will be invested in Ultium CAM, Posco Future M's 85:15 joint venture with General Motors in Quebec City.
The joint venture's cathode materials plant is currently under construction, with phased completion starting in May and full-scale operation scheduled to begin in 2026.
On April 29, Posco Group Chair Chang In-hwa visited the Ultium CAM plant construction site to check on its progress, the group said.
'In this rapidly changing global environment, I request that you remain focused on managing the construction schedule and creating the optimal conditions for a smooth start to operations,' Chang said, speaking to officials at the construction site.
'We expect this plant will serve as a foothold for our expansion into the North American market once the battery materials sector regains momentum.'
The company added that the remaining funds will be used to acquire a domestic facility for spherical graphite production, a key anode material; expand manufacturing facilities for high-nickel nickel-cobalt-aluminum oxide, a cathode material known for its high energy density, at its Gwangyang plant in Gwangyang, South Jeolla Province; maintain and upgrade existing facilities; and procure raw materials for its precursor plant in Gwangyang.
Posco Future M's largest shareholder, Posco Holdings, also announced its participation in the rights offering. The company will invest 525.6 billion won to purchase the full allocation of newly issued shares corresponding to its 59.7 percent stake in Posco Future M.
