Investment firms raise target prices as lithium demand continues to rise, boosting POSCO's growth prospects.
Category: Business
On April 28, 2026, POSCO Holdings (포스코홀딩스) experienced a notable surge in its stock price, rising by 12.34% to 469,000 won ($353.05) as investors responded to a bullish outlook on the lithium market. This increase comes on the heels of a report from UBS that raised the company's target price from 320,000 won ($242.30) to 500,000 won ($378.73), highlighting the growing value of its lithium business.
POSCO Holdings has been actively involved in lithium production, particularly through its subsidiary POSCO Argentina, which has secured mining rights for the Ombre Muerto salt lake in Argentina. The company anticipates producing over 300,000 tons of lithium, enough to supply 70 million electric vehicles (EVs), and plans to commence supply in the second half of 2026.
The recent rise in lithium prices has been attributed to increasing global demand for electric vehicles (EVs) and energy storage systems (ESS). Since August 2025, lithium prices have been on an upward trend, reaching a peak of $23,000 per ton in January 2026. As of mid-April 2026, prices have remained stable at similar levels, according to analysts. Hanwha Securities stated that the average lithium price for this year is projected to be between $23,000 and $28,000 per ton, driven by conservative investment strategies from mining companies and the rapid growth of the global ESS market.
Investment firms have reacted positively to these developments. On April 27, 2026, Seeking Alpha reported that UBS had revised its valuation of POSCO Holdings' lithium business from $6.4 billion (approximately 9.4 trillion won) to $9.4 billion (approximately 13.9 trillion won). The report emphasized that the lithium business is a key growth driver for POSCO Holdings.
As of April 28, 2026, POSCO Holdings shares were trading at 469,000 won, marking an 11.98% increase from the previous trading day. The company's stock has seen a continuous rise for three consecutive trading days since April 24, 2026. Analysts predict that if there are no major incidents, such as the workplace accidents that plagued POSCO E&C last year, the company could achieve a turnaround to profitability.
The positive sentiment surrounding POSCO Holdings is reflective of broader trends in the lithium market, which is influenced by the increasing demand for electric vehicles and energy storage solutions globally. As reported by S&P Global Energy, lithium carbonate prices reached a two-year high of 177,500 yuan (approximately $38,340) per ton as of April 27, 2026. This surge in prices is expected to benefit companies involved in lithium production, including POSCO Holdings.
In addition to its lithium ventures, POSCO Holdings is also making strides in the steel sector. On April 20, 2026, the company entered into a joint investment agreement worth 10.73 trillion won ($8 billion) with Indian steelmaker JSW Steel to construct an integrated steel mill. This collaboration is seen as a long-term strategy to capitalize on the anticipated growth in steel demand.
As POSCO Holdings continues to ramp up its lithium production capabilities and expand its operations in the steel industry, investors remain optimistic about the company's future performance. The firm’s strategic investments and market positioning indicate a strong potential for growth in both sectors.
With plans to begin lithium supply from the Ombre Muerto site in the latter half of 2026, POSCO Holdings is well-positioned to capitalize on the increasing global demand for lithium, which is a core component in battery manufacturing for electric vehicles. This strategic focus on lithium, combined with its expansion in the steel sector, suggests a promising outlook for the company moving forward.