Key Takeaways
- POSCO advances a full rare earth supply chain via POSCO International, from sourcing to EV magnet production.
- PKX invests KRW 25B in refining tech and expands sourcing in Southeast Asia for key EV materials supply.
- POSCO International targets 3,000-ton refining by 2027 and magnet output by 2028 to boost EV value capture.
POSCO Holdings Inc. (PKX – Free Report) , through its subsidiary POSCO International, is advancing a comprehensive strategy to establish a fully integrated rare earth supply chain. It aims to secure critical materials and strengthen its position in the global electric vehicle (EV) ecosystem. The initiative focuses on building capabilities across the entire value chain, from raw material sourcing to refining and final magnet production.
The company has launched a KRW 25 billion corporate venture capital (CVC) fund and made strategic investments in rare earth refining technologies to secure stable access to key elements such as dysprosium and terbium, which are essential for high-performance EV motors.
POSCO International is expanding its upstream sourcing network, particularly in Southeast Asia, with projects in countries like Malaysia and Laos to secure a steady supply of rare earth materials, targeting significant scale-up over time.
The company is also extending its footprint into North America through a partnership to build a rare earth separation and refining facility with an annual capacity of 3,000 tons, expected to begin mass production by 2027. POSCO International plans to establish a permanent magnet production capacity of 3,000 tons by 2028. This enables it to capture more value within the supply chain.
This multi-regional, vertically integrated approach is designed to enhance supply chain resilience, mitigate geopolitical risks and align with growing global demand for EV components. POSCO International is strengthening its position as a key player in the rapidly evolving rare earth and electrification landscape through the integration of raw material sourcing with advanced processing and manufacturing.
Shares of PKX are up 11.8% over the past year against the industry’s 6.1% fall.
Image Source: Zacks Investment Research
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 – Free Report) , Fortuna Mining Corp. (FSM – Free Report) and NEXA Resources S.A. (NEXA – Free Report) . IMPUY, FSM and NEXA sport a Zacks Rank of #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank 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 105.2% 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 48.6% over the past year.
The Zacks Consensus Estimate for NEXA’s current fiscal-year earnings is pegged at $1.7 per share, indicating a 100% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, with the average earnings surprise being 76%.
