POSCO Holdings Inc (PKX)

The article discusses how South Korean trade giant POSCO has tokenized trade receivables on the Avalanche blockchain. This move represents a significant step in leveraging blockchain technology for financial instruments and digitalizing traditional assets, showcasing the growing adoption of tokenization in the trade finance sector.

POSCO, a South Korean company, has implemented a long-term lithium strategy in the Argentine Andes, investing through commodity downturns to build towards 100,000 tons of annual output. The company has completed a lithium hydroxide plant in Argentina with a 25,000-ton annual capacity and plans further investments totaling over $1 billion in its Argentine facilities. These efforts aim to secure critical minerals for electric vehicle batteries and diversify the supply chain.

POSCO Holdings attributes the success of its lithium business in Argentina to the technology-centered leadership of Chairman Chang In-hwa. Chang's persistent focus on research and development, including leading pilot plant operations and assembling research teams, allowed POSCO to develop proprietary lithium extraction technology. The company is now pursuing a two-track strategy for commercial production and is also exploring Direct Lithium Extraction (DLE) technology for future leadership in the industry.

POSCO Holdings is extracting lithium from the Hombre Muerto salt flat in Argentina, utilizing deposits 600 meters underground. The company has secured 15 million tons of lithium resources, enough to produce batteries for 70 million electric vehicles, and is developing advanced extraction technologies. POSCO Argentina recently received final approval for the Incentive Regime for Large Investments (RIGI) from the Argentine government, which will provide significant tax benefits and operational stability.

American Depositary Receipts (ADRs) for LG Display and POSCO Holdings have significantly increased in the U.S. stock market this year, driven by a weak won, market volatility, and an "ADR premium." This surge reflects increased demand for converting underlying shares into ADRs for currency hedging and potential arbitrage opportunities. While not a capital increase, the deposited shares are excluded from the domestic floating volume.