POSCO Chemical exceeded KRW 1 trillion in quarterly sales for the first time in its history thanks to the expansion of their battery materials business.

This marks the highest sales record for the ninth consecutive quarter, along with the highest quarterly operating profit.

On Oct 24, POSCO Chemical announced its business performance, with total sales figures of KRW 1.533 trillion and operating profit of KRW 81.8 billion on a consolidated basis for the third quarter. Sales and operating profit have increased by 108.6% and 159.9%, respectively, compared to the same period last year, while they jumped by 31.1% and 48.1%, respectively, in comparison with the previous quarter.

The battery materials business reached KRW 726.7 billion in Q3, with the rise in sales and unit prices for both cathode and anode materials spurring rapid sales growth, posting a 238.9% and 56.3% increase against the same period from the year before and the previous quarter, respectively. The share from the total sales also jumped from 42.5% in 3Q 2021 to 69% in just a year.

The cathode materials division recorded KRW 658.3 billion posting 57.4% QoQ growth. The overall sales rose by 25% QoQ after sales of high-nickel anode materials for EV batteries increased and successfully secured new customers for an energy storage system (ESS). The hike in raw materials, such as lithium and nickel, was reflected in the unit price, pushing up both sales and operating profit significantly. ZPHE, which has been consolidated since 2Q, recorded KRW 96 billion in 3Q, contributing to strong sales.

The anode materials division posted sales of KRW 68.4 billion in 3Q, up 47.1% from the previous quarter. The rise in EV battery products drove the overall sales up by 27% QoQ, while the soaring raw materials price boosted both sales and profitability substantially.

The lime chemicals division recorded KRW 204.1 billion in sales, up 6.5% QoQ, owing to price hikes for chemical products, such as coal tar and light oil, which were pushed by rising oil prices. On the other hand, the refractory business saw sales of KRW 117.2 billion, down 12.4% QoQ resulting from the reduced sales volume.

PMCTECH, a POSCO Chemical subsidiary that manufactures needle cokes, raw materials for electric rods used in electric furnaces, posted KRW 63.7 billion in sales, up 6% QoQ, and 14.5% in operating profit margin thanks to the increased sales of oil.

Based on various investments intended to deliver raw materials stably and to secure local production capabilities, POSCO Chemical plans to complete the entire value chain, ranging from raw materials for cathode and anode materials, intermediate materials, to end products, while boosting the production capacity to 340,000 tons of cathode materials, 170,000 tons of anode materials by 2025, and 610,000 tons of cathode materials and 320,000 tons of anode materials by 2030.