The largest part of that will go into cathode active materials. And then next is lithium then nickel. In Infrastructure business, we’ll be putting about 13% there. It’s mostly for POSCO International, so for LNG investment. And other than that, investments in new technologies as well as recurring investments that will take up the rest. And you asked about the long-term CapEx, any changes there that we may have modified, but we’ll be keeping that steady. If conditions change, then, they will be reflected in our rolling plan. Raw materials upstream investments, that’s what I’ll address. So today, BHP announced its intent to take over Anglo American. And so yes, M&As are happening across the industry. At POSCO, we have an investment ground. And then we are looking at raw materials as well as a stable production base.
And these are the two goals that we need to keep an eye on steadily. For coking coal, because Southeast Asia is building more steelmaking facilities, because of the cost burden, development is a little bit lackluster, and that’s why we believe there will be some surplus supply here. So low cost and high-quality coking coal that’s going to contribute to our, carbon net zero goals, that’s what we will be going after.
Lee Kyung-seop: My name is Lee. We manufacture cathode active materials and we need a lot of raw materials. About 40% is lithium, another 55% is nickel. So, we want to be able to internally source all of these materials. So, the amount of lithium and nickel that we will need, we will have to set up mid to long-term plans on that volume. All the nickel that we need for, sorry, lithium for our cathode active materials, we want to be able to internally source. So long-term, it’s going to be 100% internally source, but in the midterm, about 50%. The reason we put 70% there is because we’re not putting all of our products to Future M, it’s because we’ll be selling to other clients as well. So, our CapEx is aiming for 100% internal sourcing.
But in the process, we could be selling to other customers and we could be contracting other suppliers as well. So that’s why we put that number at 70% right now, and so our strategy remains steady. This is about Hyper NO Steel. Our capacity is different by which product, and the one that we need to supply the most right now is e steel or traction motor Hyper NO. That is definitely a need. At Pohang Steel Works, we had about 100,000-ton capacity there, and we’ve added 150,000-ton capacity last year. At the end of this year, we’ll be adding another 150,000 tons. That will bring us up to 400,000-ton capacity system. And for transformers, I think, you were probably asking a question about the entire country. We don’t see a huge increase in this demand.
And this is an industry that’s been booming recently. It’s seen unexpected boom. So, grids and substations are in higher demand now, and this trend is going to continue globally. So, building these substations in Korea and exporting them, I think that’s something we’ll definitely be pursuing.
Unidentified Company Representative : Thank you very much for joining us today. And with that, we would like to wrap up the first quarter earnings call for POSCO Holdings. Thank you very much.
