POSCO Future M has reached an agreement with a South Korean battery manufacturer to supply more than 190,000 metric tons of lithium iron phosphate (LFP) cathode materials under a long-term contract.

The company said on Aug. 6 that it agreed to supply more than 190,000 tons of LFP cathode materials over a six-year period from 2027 through 2032. The two companies plan to finalize detailed terms and sign a definitive supply agreement during the third quarter.

To support the supply program, POSCO Future M recently converted part of a high-nickel cathode production line at its Pohang plant into an LFP cathode production line. The company is currently conducting customer qualification procedures for prototype products and plans to begin mass-production shipments by the end of this year.

POSCO Future M said it will strengthen price competitiveness by leveraging raw-material advantages within the POSCO Group. The company plans to lower production costs by utilizing iron oxide generated as a byproduct of steelmaking processes and lithium produced from salt lake operations in Argentina.

The company is also in discussions with other battery manufacturers regarding additional LFP cathode material supply agreements. It said production capacity will be expanded in line with future order intake.

EcoPro BM said its sulfide-based solid electrolyte development project for all-solid-state batteries has been selected for South Korea's third-generation "Super Eul" program, a government initiative led by the Ministry of Trade, Industry and Resources to foster globally competitive materials, components and equipment technologies.

The company said on Aug. 6 that its sulfide-based solid electrolyte project was chosen as a beneficiary of the program. The Super Eul initiative is a research and development (R&D) support scheme designed to cultivate key companies capable of securing world-leading technologies in strategic materials, components and equipment sectors. Selected projects can receive up to 20 billion won in R&D funding over a period of more than seven years.

Sulfide-based solid electrolytes are a key material for all-solid-state batteries. They are considered a promising next-generation battery material due to their high ionic conductivity and strong safety characteristics.

EcoPro BM currently operates a pilot plant with annual production capacity of 40 metric tons of sulfide-based solid electrolytes. The company said it has completed qualification processes with major battery manufacturers and is targeting mass production in 2027. It has finalized the design of its commercial production line and plans to build manufacturing facilities in line with customer demand.

In addition to solid electrolytes, EcoPro BM is also developing cathode materials for all-solid-state batteries. The company aims to strengthen its competitiveness in next-generation battery materials by leveraging its existing expertise in high-nickel cathode technologies.

"Discussions are under way with major customers regarding pilot-scale production, and the earliest timeline for mass production is expected to be 2027," said Gong Bo-hyun, vice president of research and development at EcoPro BM. "We have completed the design of the production line and are prepared to begin construction immediately once customer demand is confirmed."

POSCO Air Solution, the industrial gas subsidiary of the POSCO Group, has obtained an international quality certification for the production of high-purity rare gases used in aerospace and defense applications.

The company announced on Aug. 6 that it received AS9100D certification, the globally recognized aerospace and defense quality management system standard, from LRQA.

AS9100D is an international standard based on ISO 9001 that incorporates additional quality requirements for the aerospace and defense industries. POSCO Air Solution said it is the first company in Asia to obtain the certification in the field of high-purity rare gas manufacturing.

In June, the company completed construction of a high-purity rare gas production facility at the Donghoan industrial site within POSCO’s Gwangyang Steelworks complex. The plant has an annual production capacity of 130,000 normal cubic meters (N㎥).

POSCO Air Solution recently participated in propulsion technology development testing conducted by the Korea Aerospace Research Institute, where the performance of domestically produced xenon (Xe) and krypton (Kr) gases was successfully verified for electric propulsion applications.

“The certification will serve as an opportunity to expand our supply of rare gases for aerospace and defense applications,” Chief Executive Officer Kim Dae-yeon said.

KT&G posted record first-half revenue, driven by strong growth in its overseas tobacco business, and raised its earnings outlook for the full year.

The company said on Aug. 6 that second-quarter revenue reached 1.70 trillion won, while operating profit increased to 414.5 billion won. Compared with the same period a year earlier, revenue rose 9.9% and operating profit grew 18.5%.

KT&G also revised its full-year guidance upward. The company raised its projected annual revenue growth rate to 5–7% from a previous forecast of 3–5%, while expected operating profit growth was increased to 10–13% from 6–8%.

The tobacco business remained the primary earnings driver, generating revenue of 1.22 trillion won and operating profit of 382.5 billion won during the quarter.

Revenue from overseas cigarette operations rose 18.9% year over year to 557.7 billion won. Operating profit from the business increased 45.6%, supported by higher sales volumes and improved selling prices.

In South Korea, KT&G maintained a cigarette market share of 67.9% during the first half.

The next-generation product (NGP) business also continued to expand. NGP revenue increased 23.8% from a year earlier to 242.7 billion won, driven by strong sales of the lil AIBLE 3.0 heated tobacco device. The company's domestic NGP market share reached 48.2%.

KGC, KT&G's health functional food subsidiary, reported operating profit of 10.0 billion won, up 61.3% from the previous year, supported by higher domestic sales.

KT&G also announced enhanced shareholder returns. Its board of directors approved an interim dividend of 2,000 won per share, up from 1,400 won a year earlier.

The company said it will proceed with previously announced plans to repurchase and retire treasury shares during the second half of the year. It also plans to unveil a new mid- to long-term shareholder return policy, including additional dividend measures, in the fourth quarter.

Shinheung SEC, a key supplier to Samsung SDI, is increasing production capacity for cylindrical battery components by 20% as demand for battery backup units (BBUs) used in artificial intelligence (AI) data centers drives a shortage of cylindrical batteries.

According to industry sources on Aug. 6, Shinheung SEC is expanding production facilities for cylindrical battery current interrupt devices (CIDs) at its Malaysian plant. Monthly production capacity will increase from 80 million cylindrical-cell components to 100 million units.

Shinheung SEC supplies 80% to 90% of the cap assemblies and core CID components used in Samsung SDI's cylindrical batteries. The company is the exclusive supplier for Samsung SDI's Malaysian cylindrical battery plant.

Batteries are generally categorized into cylindrical, prismatic and pouch formats. Cylindrical batteries consist of electrodes housed within a metal cylinder. The cap assembly serves as the battery's top cover and contains safety components such as the CID, a positive temperature coefficient (PTC) device that controls overcurrent, and a vent for gas release.

Among these components, the CID is a critical safety device that disconnects electrical current and releases internal gas when battery pressure rises, reducing the risk of explosion.

The expansion is being driven by Samsung SDI's growing cylindrical battery production. Malaysia serves as the company's main production base for cylindrical cells. Since 2022, Samsung SDI has invested approximately 1.7 trillion won to establish production lines for 2170 cylindrical batteries, which measure 21 millimeters in diameter and 70 millimeters in height.

Following the expansion, production and sales at the Malaysian battery plant initially fell short of expectations due to slowing demand in power tools and micromobility applications such as electric bicycles. However, market conditions have changed as demand for AI data center BBUs has surged.

BBUs provide emergency power for server racks in data centers. Because server environments require compact form factors and high instantaneous power output, high-performance cylindrical batteries are commonly used.

"Samsung SDI expanded its Malaysian production capacity first, but when output remained weak in the early stages, there was little need for suppliers to increase component capacity," an industry source said. "Recently, demand from AI data centers has risen sharply, significantly boosting cylindrical battery production, and Shinheung SEC is now accelerating facility expansion to keep pace."

Based on the supply capacity of Shinheung SEC's Malaysian operations, Samsung SDI's Malaysian plant is estimated to have annual cylindrical-cell production capacity exceeding 1.2 billion cells. Using an industry assumption that 100 million cylindrical cells correspond to roughly 2 gigawatt-hours (GWh), annual capacity is estimated at more than 24 GWh.

Samsung SDI Energy Malaysia (SDIEM) reported first-quarter revenue of 311.3 billion won this year, more than doubling from 142.0 billion won a year earlier. Annual revenue reached 1.06 trillion won last year, surpassing the 1 trillion won mark again for the first time since 2023.

Shinheung SEC's Malaysian subsidiary also posted strong growth. First-quarter revenue increased to 11.2 billion won from 2.6 billion won a year earlier. Revenue from its small cylindrical CID business rose from 11.0 billion won, representing 10.6% of total sales, in the first quarter of last year to 25.3 billion won, or 20.5% of total sales, in the first quarter of this year.

The company's earnings are expected to improve further beginning in the fourth quarter. Samsung SDI is scheduled to begin mass production of lithium iron phosphate (LFP) prismatic batteries for energy storage systems (ESS) in October at StarPlus Energy (SPE), its joint venture with Stellantis in Indiana.

Shinheung SEC will supply prismatic battery cap assemblies for those batteries. Prismatic cap assemblies are the company's core business, generating first-quarter revenue of 88.5 billion won, up about 6% from 83.5 billion won a year earlier.

The Korea IR Council projects that Shinheung SEC's operating profit will increase from 5.9 billion won in 2025 to more than 20 billion won in 2026, driven by expanding prismatic cap assembly shipments to SPE and rising demand for cylindrical battery components used in AI data centers.

Gaon Cable, a subsidiary of LS Cable & System, will participate in a Singapore Mass Rapid Transit (MRT) power infrastructure project for the first time.

The company said on Aug. 6 that it will supply approximately 60 billion won worth of distribution cables for an MRT power grid construction project commissioned by Singapore’s Land Transport Authority (LTA). The contract marks Gaon Cable’s first order since it was registered as an approved LTA vendor last year.

Singapore plans to expand its MRT network from approximately 240 kilometers today to more than 360 kilometers by the early 2030s. With new rail lines under construction and power infrastructure upgrades planned for existing routes, demand for distribution cables is expected to remain strong.

“We will continue increasing the share of overseas revenue by focusing on strategic markets such as the United States and Singapore, while improving both profitability and growth,” Chief Executive Officer Chung Hyun said.

LS Electric has begun mass production of its next-generation power conversion system (PCS) for energy storage systems (ESS).

The company said on Aug. 6 that it held a first-shipment ceremony for its next-generation ESS PCS, known as G2, at its DC Factory in Cheonan, South Chungcheong Province, on Aug. 5, marking the start of full-scale production.

The event was attended by Chairman Koo Ja-kyun and company employees. Koo toured the dedicated G2 production line and reviewed manufacturing plans and quality management operations.

G2 is a next-generation PCS developed for the global ESS market. The system incorporates liquid-cooling technology, improving thermal management performance and durability compared with conventional air-cooled designs. It also features a space-saving architecture designed to enhance installation efficiency.

The product will be manufactured at LS Electric’s Cheonan DC Factory, a facility operated entirely on direct current (DC) power distribution. The factory employs DC-based equipment, including solid-state transformers (SSTs), solid-state circuit breakers (SSCBs) and ESS infrastructure, improving overall energy efficiency by more than 10%, according to the company.

“Following the launch of mass production for our next-generation ESS PCS, we plan to further expand our presence in overseas markets,” an LS Electric official said. “We will secure global customers based on our competitiveness in DC technologies and product quality.”

Lotte Energy Materials plans to bring its Malaysian battery copper foil manufacturing operations to full production capacity by the end of this year.

The company reported second-quarter revenue of 194.2 billion won and an operating loss of 16.9 billion won on Aug. 6. Revenue increased 21.5% from the previous quarter, driven by higher sales of high-power small batteries, copper foil for North American energy storage systems (ESS), and circuit foil products.

Demand from battery backup units (BBUs) and high-power batteries used in power tools supported performance during the quarter. Sales of copper foil for North American ESS applications and circuit foil used in artificial intelligence (AI) substrates also remained solid.

Lotte Energy Materials plans to expand production capacity at its Malaysian facilities. The company began operations at its fifth Malaysian plant in July and intends to move forward the start-up of its sixth plant from next year to the fourth quarter of this year. It aims to transition its Malaysian operations to a fully operational production and sales system within 2026.

Demand for high-performance circuit foil is also increasing as investment in AI data centers accelerates. The circuit foil market is shifting away from products primarily used in conventional information technology devices toward higher-end offerings, including reverse-treated foil (RTF), high-voltage low-profile (HVLP) foil and ultra-thin copper foil.

The company said demand for non-China products is growing, particularly among customers in North America.

“We will respond to demand from the AI data industry through our portfolio of advanced circuit foil and battery copper foil products,” Chief Executive Officer Kim Yeon-seop said. “We will strengthen our production capabilities and pursue earnings growth.

HD Hyundai said on Aug. 5 that it has launched a pilot project aimed at improving productivity at Ingalls Shipbuilding in Mississippi.

The initiative is a follow-up to a memorandum of understanding (MOU) on advanced shipbuilding technologies signed with Huntington Ingalls during the Sea-Air-Space (SAS) 2025 exhibition in the United States last year.

As the first phase of the pilot program, HD Hyundai will introduce its proprietary intelligent welding system at the Ingalls shipyard. The technology has already been deployed at HD Hyundai Heavy Industries and HD Hyundai Samho.

The intelligent welding system automatically recognizes workpieces and welding conditions, enabling real-time adjustment of welding positions. A single operator can manage multiple welding robots simultaneously, while production data is collected and stored in real time for quality control and process optimization.

The two companies plan to expand cooperation across a broader range of shipbuilding activities, including production automation, development of digital shipyards using robotics and artificial intelligence, improvements in naval ship construction productivity, workforce training, and supply chain development for shipbuilding equipment and materials.

Joo Won-ho, president of HD Hyundai Heavy Industries, said the pilot project is expected to serve as a foundation for deeper collaboration between the two companies and help improve the efficiency of naval vessel construction.

GI Tech Chief Executive Officer Lee Sang-kwon has purchased 12,000 shares of the company on the open market.

GI Tech said on Aug. 4 that Lee acquired an additional 6,000 shares on Aug. 3, following a purchase of 6,000 shares in June.

The company said Lee decided to increase his stake after concluding that the recent share price does not fully reflect GI Tech's intrinsic value.

"Through the CEO's share purchase, we will continue to demonstrate responsible management and work toward sustainable growth and enhanced corporate value," a company official said. "Building on the competitiveness of our core business, we plan to maintain earnings growth while pursuing a range of shareholder-friendly initiatives."

GI Tech reported consolidated first-quarter revenue of 10.1 billion won and operating profit of 500 million won. Revenue increased 75.7% from a year earlier, while operating profit returned to positive territory.

The earnings improvement was driven by increased shipments of slot-die equipment for energy storage systems (ESS) used in US battery plants, as well as higher sales of pump systems.

The company plans to strengthen its presence in North America by commencing full-scale operations at its Crown Point, Indiana facility in the second half of this year.

LIG Defense & Aerospace (LIG D&A) said on Aug. 4 that it successfully completed the Critical Design Review (CDR) in June for the electronic warfare system to be installed on the third Jangbogo-III Batch-II submarine. CDR is a key milestone that verifies design maturity and development readiness before prototype manufacturing begins.

LIG D&A signed a research and development contract with Hanwha Ocean in April 2025 for the electronic warfare system of the third Jangbogo-III Batch-II submarine. Since then, the program has progressed through the System Requirements Review (SRR), System Functional Review (SFR) and Preliminary Design Review (PDR), culminating in the successful completion of the CDR.

The Jangbogo-III Batch-II program is a national defense project aimed at building 3,000-ton-class submarines using domestic technology. Electronic warfare systems for submarines have historically relied heavily on foreign suppliers because of the high technological barriers involved.

Following the CDR completion, LIG D&A plans to proceed with the remaining development work and system qualification testing to ensure the program stays on schedule for military deployment. The company also intends to leverage the technologies developed through the project to create export-oriented variants.

HD Hyundai reported second-quarter operating profit exceeding 4 trillion won, supported by strong performance across its shipbuilding, construction equipment, refining and power equipment businesses.

The company said on July 31 that it posted consolidated revenue of 22.4094 trillion won and operating profit of 4.1246 trillion won for the second quarter of 2026. Revenue increased 30.2% from a year earlier, while operating profit surged 262.2%.

For the first half of the year, cumulative revenue reached 42.0113 trillion won and operating profit totaled 6.9594 trillion won.

HD Korea Shipbuilding & Offshore Engineering, the group’s shipbuilding and marine holding company, reported revenue of 8.9270 trillion won and operating profit of 1.6451 trillion won. The results were driven by higher productivity and increased sales of high-margin vessels. Revenue rose 20.2% year over year, while operating profit increased 72.5%.

HD Hyundai Marine Solution generated revenue of 580.4 billion won and operating profit of 97.6 billion won, benefiting from growth in its ship aftermarket (AM), eco-friendly retrofit and digital solutions businesses. Revenue and operating profit increased 24.1% and 17.6%, respectively, from a year earlier.

HD Hyundai Site Solutions, the group’s construction equipment unit, posted revenue of 2.5235 trillion won and operating profit of 272.0 billion won. Results were supported by improving global market conditions, stronger sales of next-generation excavators and increased demand for industrial and defense engines. Revenue rose 17.9% and operating profit climbed 79.6% from the same period last year.

HD Hyundai Oilbank recorded revenue of 9.4774 trillion won and operating profit of 1.8241 trillion won. Improved profitability in lubricant base oils and petrochemicals helped offset volatility in international crude oil prices.

HD Hyundai Electric reported revenue of 1.1418 trillion won and operating profit of 287.0 billion won. Growth was driven by higher sales in its power distribution business and improved profitability in overseas markets. Revenue increased 26.0% year over year, while operating profit rose 37.3%.

An HD Hyundai representative said earnings improved across the group’s major businesses, including shipbuilding, construction equipment, refining and power equipment.

The company said it plans to continue enhancing profitability through selective orders focused on high-value-added vessels, expansion into new markets and ongoing improvements in product mix.

EcoPro BM plans to begin operating a second production line at its Hungary cathode materials plant in September as it seeks to turn its Hungarian subsidiary profitable in the second half of the year.

The company reported consolidated second-quarter revenue of 576.7 billion won and operating profit of 18.0 billion won on July 31. Revenue declined 5% from the previous quarter, while operating profit fell 14%.

Performance was affected by temporary demand disruptions caused by model transitions at European automotive original equipment manufacturers (OEMs) and a slowdown in the North American electric vehicle market.

By business segment, revenue from energy storage system (ESS) materials fell 54% from the previous quarter due to stagnant European electric vehicle demand and a shift in North American ESS supply chains. Revenue from electric vehicle cathode materials increased only 1%.

In contrast, revenue from power applications rose 28%, supported by expanding investment in artificial intelligence (AI) data centers and growing demand for power tools and electric bicycles.

The company plans to accelerate its European expansion through its Hungary facility. After launching the first production line in June, EcoPro BM will begin operating a second line in September. Production is expected to reach 10,000 metric tons this year and expand to 30,000 tons in 2027.

EcoPro BM said the plant's utilization rate and production yield have already reached target levels. While the subsidiary recorded losses in the first half because of depreciation expenses and labor costs associated with initial mass production, the company aims to achieve quarterly profitability in the second half through higher output, improved operating efficiency and cost reductions.

New European projects have also entered mass production. The company recently began manufacturing products for a newly secured European customer and is preparing several additional projects for volume production. EcoPro BM expects growth to gradually recover as shipments from both existing contracts and new programs increase.

The company is also proceeding with its investment in the BNSI nickel smelter project in Indonesia, which is intended to strengthen raw material cost competitiveness. Trial operations are scheduled to begin later this year, with commercial production targeted for the second quarter of 2027.

Once operating at a stable level, the smelter is expected to generate approximately $1.7 billion in annual revenue and achieve a double-digit operating margin, according to the company. Through its 39% stake in BNSI, EcoPro BM expects to secure approximately 36,000 tons of intermediate nickel materials annually.

The company is continuing development of next-generation battery materials. Its sulfide-based solid-state electrolyte has completed customer quality verification and is targeted for mass production in 2027. Lithium manganese-rich (LMR) cathode materials are undergoing customer qualification processes, while sodium-ion cathodes and silicon anodes are also being prepared for commercialization.

EcoPro BM said it remains on track with the 1.2 trillion-won rights offering announced in June. The company plans to determine the preliminary offering price in September, finalize the subscription price in October and list the newly issued shares in November.

Korea Aerospace Industries (KAI) has been selected to lead a government-backed defense project aimed at developing on-device artificial intelligence (AI) semiconductors and validating their performance on unmanned aerial vehicles.

KAI announced on July 31 that it had been named the preferred bidder in the defense segment of the Ministry of Trade, Industry and Resources' K-On-Device AI Semiconductor Technology Development Program. The project has a total budget of 95.3 billion won and will run for five years.

The program seeks to develop a defense-grade system-on-chip (SoC) and an autonomous control system (ACS) incorporating the chip, then integrate the technologies into an unmanned aircraft platform for performance verification.

The project consists of three subprograms. KAI will serve as the overall project coordinator and lead the first and third subprojects, which include development of a high-speed expendable unmanned aerial vehicle, autonomous control systems, system integration and flight testing. The second subproject, focused on AI semiconductor development, will be led by a domestic fabless semiconductor company.

The consortium includes South Korean AI semiconductor developers, AI model companies and research institutions. Samsung Electronics will be responsible for semiconductor manufacturing.

KAI plans to incorporate the AI chip developed through the project into its proprietary AI pilot system, known as K-AILOT. The company also intends to expand the technology to satellite applications, enabling onboard AI chips to analyze data in real time before transmitting it to ground stations.

KAI has been strengthening its AI ecosystem through partnerships. The company signed a memorandum of understanding with Samsung Electronics last year and another with Team Naver—comprising Naver and Naver Cloud—earlier this month. KAI said it is pursuing the development of a sovereign AI framework that combines AI semiconductors, large language AI models and cloud technologies.

Hanwha Aerospace reported quarterly operating profit exceeding 1 trillion won for the first time, supported by strong defense exports and improved performance from its subsidiaries.

The company said on July 31 that it posted consolidated revenue of 9.2929 trillion won and operating profit of 1.3655 trillion won for the second quarter of 2026. Revenue increased 47% from a year earlier, while operating profit rose 59%.

The ground defense business generated revenue of 2.1075 trillion won and operating profit of 533.0 billion won. Revenue rose 19% year over year, while operating profit increased 2%. In South Korea, growth was driven by higher production volumes of the Cheonho wheeled anti-aircraft gun and the Cheongeom. Overseas, shipments to Poland, Egypt and Middle Eastern customers contributed to earnings.

Hanwha Aerospace said its order backlog expanded to 38.3 trillion won following an additional K9 self-propelled howitzer export contract with Finland signed in April and a supplementary Chunmoo multiple launch rocket system supply agreement with Estonia signed in May.

The aerospace business recorded revenue of 760.0 billion won and operating profit of 37.0 billion won. Revenue increased 17% from a year earlier on higher military program volumes, while the division returned to profitability.

Consolidated subsidiary Hanwha Ocean also contributed significantly to earnings growth. Benefiting from a higher proportion of high-margin vessels, including liquefied natural gas (LNG) carriers, Hanwha Ocean posted revenue of 5.4432 trillion won and operating profit of 736.1 billion won. Revenue rose 65% year over year and operating profit increased 98%.

Hanwha Systems reported revenue of 1.1176 trillion won and operating profit of 103.7 billion won, supported by growing defense exports, including multifunction radar (MFR) systems.

In the second half, Hanwha Aerospace plans to continue production under the second execution contract for Poland's K9 program and proceed with K9 deliveries to Egypt and Australia. The company also plans to participate in the South Korean government's advanced aircraft engine development program based on a prototype unmanned aerial vehicle engine it recently unveiled.

Hanwha Ocean has secured a contract worth 838 billion won to complete the detailed design and construct the lead ship of South Korea's next-generation destroyer program, known as KDDX.

The company disclosed on July 31 that it signed a contract with the Defense Acquisition Program Administration (DAPA) for the KDDX detailed design and lead ship construction project. The contract is valued at 838 billion won and runs through June 30, 2032.

DAPA issued the tender in March and selected Hanwha Ocean as the preferred bidder on July 1 following site inspections and proposal evaluations. Hanwha Ocean subsequently completed negotiations covering technical requirements, contract terms and pricing before signing the final agreement.

KDDX is South Korea's first Aegis-class destroyer program to develop both the hull and combat system using domestic technologies. The government plans to invest approximately 7.8 trillion won to acquire six 6,000-ton destroyers. The Republic of Korea Navy plans to commission the lead ship in 2032 and deploy all six vessels by 2036.

Hanwha Ocean and HD Hyundai Heavy Industries competed for the KDDX contract. HD Hyundai Heavy Industries scored 0.6425 points higher than Hanwha Ocean in the technical evaluation. However, a 1.2-point security penalty related to a military secrets leak case reversed the ranking. Hanwha Ocean ultimately received 93.9542 points, compared with 93.3675 points for HD Hyundai Heavy Industries, a margin of 0.5867 points.

The timing and procurement method for the five follow-on vessels have not yet been determined. An industry official said the remaining ships are expected to be ordered around 2028, although authorities have not decided whether they will be procured through a single package or multiple contracts.

Hanwha Ocean plans to equip the KDDX destroyer with nine domestically developed systems. The design will also incorporate a manned-unmanned integrated combat system, a multi-layered defense architecture and a cyber defense framework. Ship automation technologies aimed at reducing crew requirements will also be included.

Since its launch in 2023, Hanwha Ocean has won contracts for the fifth and sixth Ulsan-class Batch-III frigates and the first and second Batch-IV frigates. The KDDX lead ship award further expands the company's surface combatant shipbuilding portfolio.

Dongwon Systems posted stronger second-quarter earnings, supported by growing exports of high-value-added packaging materials and improved performance at its overseas subsidiaries.

The company disclosed on July 31 that it recorded consolidated revenue of 402.2 billion won and operating profit of 31.4 billion won for the second quarter. Revenue increased 9.8% from a year earlier, while operating profit rose 21.1%.

First-half cumulative revenue reached 740.0 billion won, up 5.2% year over year. Operating profit increased 15.5% to 44.4 billion won. The company said expanded exports of high-value packaging materials and improved profitability at overseas subsidiaries contributed to the earnings growth.

In its materials business, Dongwon Systems expanded exports of its recyclable polyethylene (PE)-based mono-material packaging products to North America, Asia and Africa. Exports of the products increased by about 20% from the same period last year.

Its Vietnamese subsidiary, Tan Tien Packaging (TTP), also posted stronger sales as shipments to North American markets, including the United States and Canada, increased. Revenue at the subsidiary rose by approximately 20% year over year.

A Dongwon Systems representative said the company plans to further expand overseas packaging material sales in the second half while fostering new businesses, including battery materials and advanced films.

POSCO Holdings improved profitability in the second quarter, supported by stronger performance from its lithium and liquefied natural gas (LNG) businesses. The company's battery materials segment also returned to profitability, contributing to overall earnings growth.

The company reported revenue of 19.259 trillion won and operating profit of 819 billion won for the second quarter, according to results released on July 30. Net profit totaled 761 billion won. Major businesses, including steel, battery materials and energy, all improved from the previous quarter.

In the battery materials segment, POSCO Future M benefited from inventory valuation gains on cathode materials and a recovery in anode material sales. The company reported revenue of 679.5 billion won and operating profit of 26.7 billion won on a consolidated basis in the second quarter. Operating profit surged 3,351.2% from a year earlier.

The battery materials business posted revenue of 327.9 billion won and operating profit of 2.5 billion won, returning to profitability from the previous quarter. Improved earnings were driven by inventory valuation gains on cathode materials and increased anode material sales to key customers. The basic materials business recorded revenue of 351.6 billion won and operating profit of 24.2 billion won, with operating profit rising 28.7% from the previous quarter.

The lithium business also continued to improve. POSCO Argentina achieved its first quarterly profit after stabilizing operations and improving facilities at its first lithium brine plant. POSCO Pilbara Lithium Solution also reported stronger profitability, supported by higher sales volumes and rising lithium prices. Battery recycling subsidiary POSCO HY Clean Metal has remained profitable every month since December 2025, driven by high utilization rates.

In the infrastructure segment, POSCO International posted its highest-ever quarterly operating profit, supported by strong performance from gas fields in Myanmar and Australia and its palm oil business in Indonesia. POSCO E&C maintained stable profitability on the back of increased construction orders.

Korea Aerospace Industries (KAI) has entered into a strategic partnership with Brazilian aerospace manufacturer Embraer to collaborate on aircraft structures.

KAI announced on July 30 that it signed a memorandum of understanding (MOU) with Embraer on July 28 to pursue strategic cooperation in the aircraft structures business.

Under the agreement, the two companies will expand collaboration in research and development (R&D) of new technologies, with an initial focus on aircraft structures. KAI aims to combine its aerospace engineering expertise with Embraer's aircraft development and manufacturing capabilities to strengthen technological competitiveness and improve manufacturing efficiency.

The companies will also explore cooperation in aircraft design, engineering, manufacturing and quality management. In addition, they plan to identify joint initiatives to optimize manufacturing processes and enhance cost competitiveness.

Kim Jong-chul, president of KAI, said the partnership with Embraer represents an important step in expanding the company's collaboration with leading global aerospace manufacturers.

POSCO Future M will begin mass producing hard carbon anode material, a core material for sodium-ion batteries, in 2028. It is the second company in South Korea, after Aekyung Chemical, to disclose plans for both the development and mass production of hard carbon anode material.

According to industry sources on July 24, POSCO Future M recently drew up its development plans for battery cathode and anode materials as well as its next-generation materials strategy. The development status and mass production plans for hard carbon anode material for sodium-ion batteries were included for the first time.

POSCO Future M plans to complete development of the hard carbon anode material by the third quarter of 2027 and begin mass production in 2028. It expects that rather than fully replacing lithium iron phosphate (LFP) batteries, sodium-ion batteries will broaden their range of use mainly in fields requiring low-temperature environments and long life. South Korean battery makers including LG Energy Solution and Samsung SDI are also developing sodium-ion batteries aimed at low-temperature, long-duration energy storage systems (ESS).

Sodium-ion batteries are next-generation batteries that use sodium (Na) instead of lithium (Li). Sodium is abundant on Earth, making raw material procurement easier than for lithium, with relatively smaller price fluctuations. The basic structure, consisting of a cathode, anode, electrolyte and separator, is the same as that of lithium-ion batteries, but the component materials differ. Cathode materials use sodium iron phosphate (NFPP) or nickel-iron-manganese (NFM), while hard carbon is mainly applied in place of graphite for the anode material. The electrolyte also uses sodium salts dissolved in an organic solvent.

The reason the anode material changes is the size of the sodium atom. Sodium atoms are about 2.5 times larger than lithium atoms and more than three times heavier. Ordinary graphite has narrow spacing between layers, making it difficult for the larger sodium ions to move in and out freely.

Hard carbon, by contrast, has a wide interlayer structure and fine pores inside that can stably store sodium ions. Its structural deformation is also relatively small even after repeated charging and discharging. Hard carbon costs more than three times as much as graphite, but a substantial portion of that cost burden can be offset because aluminum foil, priced at about one-third the cost of conventional copper foil, can be used as the current collector.

POSCO Future M plans to mass produce hard carbon using its existing anode material production lines. Existing equipment such as heat-treatment furnaces, reactors and slurry processes can be partially adapted, reducing the burden of new investment.

Market research firms forecast that global sodium-ion battery shipments will exceed 70 gigawatt-hours (GWh) in 2028. Producing 1 GWh of batteries requires about 1,500 tons of hard carbon anode material. On that basis, demand for hard carbon anode material in 2028 is estimated to exceed 100,000 tons. China has already taken the lead in the supply chain.

The companies currently mass producing hard carbon anode material are Chinese firms including BTR, Shanshan and Zhongke Electric. These companies are also among the global leaders in the graphite anode material market. China's hard carbon production capacity is estimated at 80,000 to 90,000 tons a year. In South Korea, Aekyung Chemical was the first to disclose plans for hard carbon mass production. It is building a pilot line with annual capacity of 1,300 tons, targeting completion within this year.

Besides hard carbon, POSCO Future M also unveiled a development roadmap for other next-generation battery materials, including LFP cathode material, lithium manganese-rich (LMR) cathode material and silicon anode material. It will convert part of its cathode production lines in Pohang for LFP use, produce prototypes this year and start mass production in the second half. In 2029, it will build an LFP cathode production system applying raw materials from within the group and its own processes. For anode materials, it will also expand its product lineup to include natural and artificial graphite and silicon anode materials to respond to changes in the electric vehicle and ESS markets.