POSCO Holdings, Inc.’s PKX subsidiary POSCO Future M recently secured a major contract for artificial graphite anode material, valued at about KRW 1.0149 trillion. The agreement spans five years, from 2027 to 2032, with potential for extension. It underscores strong and sustained demand for high-performance anode materials for lithium-ion batteries in EV applications.
This contract carries strong strategic significance, as artificial graphite anodes play a vital role in enhancing battery longevity, enabling faster charging and boosting overall performance factors that are increasingly critical in the fast-growing EV market. The agreement also fast-tracks POSCO Future M’s evolution from a primarily domestic supplier into a global leader in anode materials. It further aligns with the company’s broader strategy of widening its international customer footprint and diversifying supply chains amid rising geopolitical tensions.
The contract lays the groundwork for a “quantum leap” in the company’s anode business by supporting capacity expansion and overseas investments, including its recently announced artificial graphite anode plant in Vietnam. The company has approved an investment of about KRW 357 billion to build an artificial graphite anode plant in Vietnam.
The agreement ensures clear demand visibility, which supports the Phase 1 investment. This allows the company to proceed with a Phase 2 expansion to meet higher volumes. The contract and capacity build-out establish a solid base for long-term growth and strengthen POSCO Future M’s ability to capitalize on increasing global EV demand.
Shares of PKX are up 7% over the past year compared with the industry’s 6% fall.
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PKX Zacks Rank & Key Picks
PKX currently carries a Zacks Rank of #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Impala Platinum Holdings Limited IMPUY, Fortuna Mining Corp. FSM and NEXA Resources S.A. NEXA. IMPUY, FSM and NEXA sport a Zacks Rank of #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for IMPUY’s current fiscal-year earnings is pegged at $2.12 per share, indicating a 4,140% year-over-year increase. Shares of IMPUY have jumped 117.2% over the past year.
The Zacks Consensus Estimate for FSM’s current fiscal-year earnings is pegged at $1.85 per share, indicating a 180.3% year-over-year increase. Shares of FSM have gained 58.6% over the past year.