[Edaily Reporter Kim Hyung-il ] Meritz Securities projected that POSCO FUTURE M(003670)’s second-quarter earnings would meet market expectations, while shipments of cathode materials are expected to increase gradually starting next quarter. However, noting that no structural changes are expected to materialize in the short term, the firm maintained its “Hold” investment rating and target price of 150,000 won.

On the 31st, Hwang Hyun-sik, an analyst at Meritz Securities, stated, “Cathode material shipments, which temporarily declined this quarter, are expected to increase gradually starting next quarter,” adding, “The annual sales guidance for cathode materials is around 50,000 metric tons.”

POSCO FUTURE M’s second-quarter consolidated revenue was 679.5 billion won, and operating profit was 26.7 billion won, in line with market expectations. In the battery materials division, cathode material revenue totaled 299.6 billion won. Sales volume decreased by 20% compared to the previous quarter due to delays in N87 shipments, and the average selling price fell this quarter as the lag in reflecting lithium price movements was delayed. In the anode materials segment, the operating loss narrowed due to a recovery in sales volume, while profitability for Hwaseong-produced products improved thanks to rising sales prices—linked to international oil prices—and increased sales volume.

Researcher Hwang projected that cathode material shipments will increase gradually starting next quarter. He anticipated that shipments would resume around the end of the year, driven by the expansion of the market for mid- to low-priced products for European customers and the planned launch of the joint venture (JV) with GM in the U.S. He also noted that the demand base is expanding into new applications, including energy storage systems (ESS), auxiliary batteries, and power tools.

In the medium to long term, the company plans to begin full-scale mass production of lithium iron phosphate (LFP) cathode materials in 2026–2027, utilizing converted existing production lines and facilities at the joint venture. As three domestic cell manufacturers have also begun developing cathode materials for sodium-ion batteries—a project they are preparing for the medium to long term—the firm anticipates that medium- to long-term production facility utilization rates will rebound if future demand is secured.

However, Meritz Securities judged that structural changes visible in the short term have not yet materialized. Analyst Hwang explained, “Considering the efforts to decouple the battery materials supply chain from China in collaboration with POSCO Holdings and to diversify the battery materials portfolio, the company maintains a premium multiple compared to overseas competitors.”