Analysis
July 6, 2026
Posco to focus on three core sectors
Written by CRU
This item was first published by CRU. To learn about CRU’s global commodities research and analysis services, visit www.crugroup.com.
South Korean conglomerate Posco, which has expanded far beyond its original steel making activities, is to concentrate on expanding in business areas which support industrial security and supply chain resilience, Posco Chairman Chang In-hwa said.
What the company dubs the triple core are industrial resources (steel), strategic resources (lithium, cathode and anode materials, rare earth elements), and energy resources (liquefied natural gas and renewables).
“Now, when external uncertainty is deepening due to supply chain instability and the low-carbon transition is in acceleration, is the time to create new growth opportunities through bold innovation of our business portfolio,” local media quoted Chang as saying at the group’s investor day.
The group plans to invest KRW16.7 trillion ($10.2 billion, €9.49 billion) through to 2028 on expanding those core activities, with an estimated KRW 3.82 trillion of the money coming from selling stakes in listed subsidiaries. The conglomerate will reduce its ownership to ~50%, which it considers is sufficient to retain management control.
Among projects the funds will be spent on are expanding lithium operations in Argentina and Australia, adding rare earth elements and graphite to the company’s portfolio, building an electric arc furnace (EAF) in partnership with compatriot Hyundai Steel in Louisiana and a joint venture blast furnace project with JSW Steel in India.
Longer-term goals include having 10 Mt/y of overseas steelmaking capacity by 2031, building up a lithium production capacity of 173,000 metric tons per year by 2033, and by 2035 generating KRW187 trillion in turnover and KRW13.1 trillion won in operating profit.
The planned energy projects include expanding natural gas production in Myanmar and Australia and growing trading activities, especially LNG.
