Hyundai Motor Group (the Group) and POSCO Group (POSCO) have agreed to cooperate in the steel and battery sectors as both parties seek to strengthen global competitiveness.
The Group and POSCO signed a Memorandum of Understanding (MOU) today in Seoul for comprehensive business cooperation in the fields of steel and battery materials. The signing ceremony was attended by Hyundai Motor Group Executive Vice President and Head of Corporate Planning Division, Suk Won Hahn, and POSCO Holdings President and Head of Corporate Strategy Division, Ju-Tae Lee.
Under the aims of this MOU, the Group intends to strengthen its competitiveness in major global markets and future businesses through a stable supply of key materials for its mobility operations. POSCO aims to establish itself as an industry-leading supplier of automotive steel and key battery materials.
The two organizations will focus on cooperation across a wide range of areas, further enhancing the transition towards low-carbon-emissions steel production, and safety, as well as improving adaptability in response to the rapidly changing global business environment.
Collaboration on low-carbon-emissions steel production
Under the agreement, POSCO Group plans to collaborate with Hyundai Motor Group through an equity investment in the Group’s recently announced Electric Arc Furnace (EAF) integrated steel mill project in Louisiana, U.S.
The USD 5.8 billion Louisiana EAF integrated steel mill will specialize in producing high-quality next-generation automotive steel sheets and will provide an annual production capacity of 2.7 million metric tons of hot-rolled and cold-rolled steel sheets once operations commence in 2029.
The Louisiana steel mill will enable the Group to deliver a reliable and stable supply of high-quality next-generation automotive steel sheets to its major production bases in the U.S., including Hyundai Motor Group Metaplant America (HMGMA), Hyundai Motor Company’s plant in Alabama, and Kia Corporation’s Autoland Georgia facility.
The cooperation will allow POSCO to secure a bridgehead for its entry into the North American steel market.
Partnership to also focus on battery material sourcing
The two groups also agreed to collaborate in the field of battery materials.
Hyundai Motor Group is aiming to further solidify its electrification leadership, with an annual sales target of 3.26 million electric vehicles (EVs) by 2030. To achieve this goal, the Group is pursuing various collaborations with leading global companies to ensure the stable supply of key battery materials.
POSCO Group has expertise in lithium and battery materials through its domestic and overseas production facilities. POSCO also produces lithium hydroxide and cathode and anode active materials for EVs at its domestic and overseas sites.
The two organizations plan to seek ways to diversify the supply chain of highly competitive key battery materials, such as lithium and anode active materials, which influence battery performance and life.
This is expected to contribute to securing battery raw materials that comply with supply chain dynamics and regulations in the U.S. and Europe.
In addition, the two companies plan to continue cooperation by exploring additional areas for long-term synergies.
SOURCE: Hyundai
