POSCO Holdings, Inc. PKX, through its battery materials subsidiary POSCO Future M, is advancing the development of natural graphite anode materials using non-mined raw materials in partnership with U.S.-based Molten. The companies recently signed a memorandum of understanding (MOU) at COEX in Seoul to jointly develop graphite anode feedstock produced from methane gas.
Molten will use its methane pyrolysis process to produce graphite, which POSCO will process into spherical graphite through its subsidiary FutureGraph before manufacturing natural graphite anode materials at its Sejong plant. Graphite produced from methane contains fewer metallic impurities than conventionally mined graphite, reducing purification requirements and lowering production costs.
The partnership could also create broader synergies for the POSCO Group, as methane pyrolysis generates hydrogen alongside graphite. The hydrogen may potentially be used in power generation and POSCO’s hydrogen-based direct reduction steelmaking operations.
Per PKX, the partnership will help diversify its supply chain and strengthen cost competitiveness in the global battery materials market.
Separately, POSCO continues to build a vertically integrated anode-material supply chain. For natural graphite anodes, the company plans to source graphite ore from Africa and other regions through the POSCO Group and process it into spherical graphite at FutureGraph. For artificial graphite anodes, the company utilizes coal- and petroleum-based coke derived from coal tar generated during POSCO’s steelmaking operations.
Shares of PKX have gained 65.5% in the past year against the industry’s 3.6% decline.
PKX Zacks Rank & Key Picks
PKX currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Conglomerates space are ITT Inc. ITT, Mitsui & Co., Ltd. MITSY and Griffon Corporation GFF. ITT, MITSY and GFF carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for ITT’s current-year earnings is pegged at $7.91 per share, indicating a 17.7% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, with the average earnings surprise being 5.8%.
The Zacks Consensus Estimate for MITSY’s current-year earnings is pegged at $47.08 per share, indicating a 21.84% year-over-year decrease. Shares of MITSY have gained 63.4% over the past year.
The Zacks Consensus Estimate for GFF’s current fiscal-year earnings is pegged at $5.17 per share. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average earnings surprise being 3.3%.
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