In September, POSCO sold half of its stake in Nippon Steel for 25.3 billion yen (159.97 million US dollars).
The sale marks the official recognition of the end of the long-standing "iron alliance" between the two steel giants. POSCO said the move reflected its strategic shift towards core and emerging business lines.
The money will be directed to lithium, hydrogen and future-oriented growth
POSCO plans to redirect the funds raised to fast-growing industries, including lithium mining/processing and hydrogen energy, in line with global trends towards clean energy and electric vehicle supply chains.
What does this mean for steel and the energy and materials sector
- A strategic reversal from the traditional cross-ownership of stocks. Having abandoned its inherited ties with Nippon Steel, POSCO is focusing on core business lines and growing sectors - a clear sign of a change in positioning in a changing market.
- An energy transition game. Redirecting capital to lithium and hydrogen aligns POSCO with global decarbonization trends and the growing demand for batteries for electric vehicles, potentially giving the company a competitive advantage.
The steel business is under pressure, but the risk is diversified. Although the global steel market remains cyclical and challenging, POSCO's diversified portfolio can help protect against downturns in the steel sector.
