Home > Business > Industry

Posco Holdings looks to lithium, steel for rebound as profit slides 15% in 2025

Published: 29 Jan. 2026, 18:10 Updated: 29 Jan. 2026, 18:12

A view of the Wodgina lithium mine in Australia, owned and operated by Australia’s Mineral Resources [POSCO]

Posco Holdings’ operating profit fell more than 15 percent in 2025 from a year earlier. Its steel business held up despite headwinds such as rising protectionism and global oversupply, but weaker performances in its materials and construction businesses weighed on overall results, the company announced Thursday.

The company is looking for a rebound in the price of lithium — sometimes dubbed “white oil” for its value — to help restore earnings this year.

Posco Holdings said consolidated revenue totaled 69.1 trillion won ($48.3 billion) in 2025, while operating profit fell to 1.83 trillion won. Both figures were down 4.9 percent and 15.9 percent, respectively, from the previous year. Net profit tumbled 46.8 percent to 504 billion won.

Revenue from the steel business declined 6.8 percent to 35 trillion won, but operating profit rose 20.8 percent to 1.78 trillion won, helping cushion the overall downturn. The company attributed improved profitability to structural cost-cutting measures, including maximizing energy efficiency.

Posco International, the group’s energy and trading arm, also posted a record-high operating profit of 1.17 trillion won, supported by expanded liquefied natural gas (LNG) output at Australia’s Senex Energy and the acquisition of an Indonesian palm oil company, among other factors.

By contrast, Posco’s secondary battery materials business posted an operating loss of 44.1 billion won, while construction unit Posco E&C recorded a 45.2-billion-won loss, weighed down by disruptions, including construction halts.

Posco Holdings is positioning 2026 as a year of recovery, with rising lithium prices expected to provide a tail wind. According to the Korea Resources Information Service, lithium was priced at $17.87 per kilogram (2.2 Ibs) as of Wednesday, up 86.3 percent from the 2025 average and the highest level since November 2023. Lithium is a key input for cathode materials, a core component in batteries.

A view of Posco Group’s lithium mine in Argentina [JOONGANG ILBO]

Posco is already producing lithium commercially at its first plant in Gwangyang and plans to begin production at a second Gwangyang plant in the second quarter. The company also expects results to reflect expanded commercial production at its lithium brine operations in Argentina, while the planned acquisition of a stake in an Australian lithium mine — slated for completion in the second half — is expected to feed into earnings as well.

Over the mid- to long-term, the company also sees additional growth drivers in next-generation battery demand, including all-solid-state batteries for humanoid robots.

In steel, Posco plans to maximize profitability by strengthening plant-by-plant specialization strategies, such as positioning Pohang for energy steel and Gwangyang for mobility steel. The policy environment is also seen as supportive.

“An extension of antidumping duties on hot-rolled steel products from China and Japan through June is restoring negotiating power in the market,” said Park Kwang-rae, an analyst at Shinhan Securities, adding that China’s move to introduce an export licensing system for certain steel items could also have a positive impact.

“The company has moved past a temporary low point caused by a concentration of fourth-quarter factors such as major plant maintenance, costs tied to divesting loss-making units and one-off losses in its construction business,” said a Posco Holdings official. “Earnings will trend upward this year on the back of steady profits from its steel and LNG businesses and the start of lithium commercial production.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NA SANG-HYEON [[email protected]]