[Edaily Reporter Kwon Oh Seok ] SKSecurities announced on the 5th that it is maintaining its “Buy” investment rating and target price of 300,000 won for POSCO FUTURE M(003670).

Park Hyung-woo, an analyst at SKSecurities, stated, “Starting in 2027, LFP (lithium iron phosphate) precursors and anode materials will become bottlenecks. The 15,000-metric-ton production line, which has shifted from ternary to LFP, is scheduled to begin deliveries by the end of this year. The issue is the timing of additional supply.”
He continued, “Actual demand for LFP cathode materials for North American ESS (energy storage systems) will take off in earnest starting in 2027, but new capacity currently under construction will not be available by that time. Converting existing ternary lines is the only physically feasible way to respond,” adding, “The company has been preparing to improve production efficiency and secure precursor supplies.”
Researcher Park emphasized, “Anode materials further strengthen our bargaining power. In LFP batteries for ESS, the cost of anode materials accounts for a higher proportion compared to ternary EV batteries. Anode materials become a bottleneck as cell manufacturers work to meet requirements for non-Chinese materials,” adding, “POSCO FUTURE M is the only company in Korea capable of resolving both of these bottlenecks simultaneously.”
He continued, “Among domestic cathode materials, we have an advantage in precursor procurement. In the mid- to long-term, we aim to commercialize a new LFP production method that offers a cost advantage, backed by support from the POSCO Group.” He added, “We are paying close attention to the possibility of package contracts for both anode and cathode materials. “Customers must ultimately establish a non-Chinese value chain for either LFP precursors or anode materials—or both. This is why the company holds a key position at the negotiating table,” he said.
Second-quarter operating profit was 26.7 billion won (up 3,351% year-over-year), slightly below consensus estimates. Revenue also fell short of expectations. He explained, “This was due to the absence of cathode material shipments for Ultium, coupled with the postponement of N87 shipments to the third quarter due to stagnant sales at our customers and issues at overseas plants,” adding “Nevertheless, the Energy Materials division returned to profitability with an operating profit of 2.5 billion won. The anode materials division also narrowed its loss as sales volume doubled quarter-over-quarter due to a recovery in overseas shipments. We forecast third-quarter operating profit at 27.4 billion won,” he added.