Seoul: POSCO Holdings announced plans to inject 922.6 billion won (US$633 million) into three of its battery materials affiliates to address financial challenges caused by decreased demand in the electric vehicle (EV) market.
According to Yonhap News Agency, the investment will be carried out through separate share offerings by POSCO Future M Co., POSCO Pilbara Lithium Solution, and POSCO GS Eco Materials. This strategic decision aims to mitigate the effects of the “EV chasm,” a period characterized by slow consumer adoption prior to widespread market growth.
POSCO Future M, the group’s leading affiliate, intends to raise 1.1 trillion won through new share issuance to support facility investments, operational expenses, and other business requirements. The remaining affiliates plan to use the funds from the share sales to enhance liquidity and maintain raw material sourcing and processing operations.