POSCO Future M sees cathode material prices falling 12% in Q4

South Korean electric vehicle battery materials maker POSCO Future M Co. predicts that cathode material prices in the fourth quarter will drop as much as 12% year on year. 

The falling prices of raw materials such as lithium are expected to continue the downturn in cathode material costs.

Hwang Hee-sun, head of the company’s IR Group, on Tuesday gave POSCO Future M’s sales outlook for the fourth quarter at a third-quarter results presentation.

“Unit sale prices will fall but sales volume will increase,” he said. “The prices of raw materials for cathode materials such as lithium next year will see no further sudden drops.”

China's graphite export controls that take effect in December will have limited impact, he added.

“The export sanctions are on natural graphite, and the latest reports say little will change,” Hwang said. “But screening time and costs could rise.” 

“Natural flake graphite might suffer effects such as delayed periods and additional costs.”

In the third quarter, POSCO Future M raked in sales of 1.285 trillion won ($955 million), up 22.1% from the same period last year, as its sales for three consecutive quarters was the highest in the company’s history. Operating profit, however, plunged 54.6% to 37.1 billion won.

Write to Mi-Sun Kang at misunny@hankyung.com