POSCO Future M posted a turnaround in its battery materials business in the first quarter, with the division recording an operating profit of 2.4 billion won ($1.8 million) after struggling with profitability issues in previous quarters.
The South Korean battery materials maker reported consolidated revenue of 845.4 billion won ($633.8 million) and operating profit of 17.2 billion won ($12.9 million) for the quarter. Its battery materials segment, which produces cathode and anode components for electric vehicle batteries, saw sales jump 32.4% from the previous quarter to 505.6 billion won ($379.1 million).
The profit recovery in the cathode materials business stems from increased plant utilization rates and expanded sales of premium high-nickel products that command better margins. Meanwhile, anode material volumes grew as customers diversified supply chains amid ongoing global trade tensions.
The company’s basic materials division, which includes refractory products and chemicals, contributed 14.8 billion won ($11.1 million) in operating profit on sales of 339.8 billion won ($254.8 million), helped by higher steel industry demand and improved coal tar sales prices.
POSCO Future M is pursuing several next-generation battery material technologies, including high-voltage Mid-Ni cathodes and silicon-carbon composite anodes. The company is also exploring commercialization options for lithium iron phosphate (LFP) cathode materials as automakers seek lower-cost battery solutions.
