POSCO, Hyundai sign agreement with eye on future mobility market
The two South Korean companies agreed to create sustainable synergy in low-carbon steel and secondary battery markets amid global economic blocks and rapidly changing trade environments.
Steel giant POSCO Group and Hyundai Motor, representing South Korea’s manufacturing industry, have joined hands to secure a leading position in the global future mobility materials market.
The two South Korean companies held a signing ceremony for a ‘Memorandum of Understanding for Mutual Cooperation in Steel and Secondary Battery Fields’ agreeing to create sustainable synergy in low-carbon steel and secondary battery markets amid global economic blocks and rapidly changing trade environments, according to a media release.
With this MOU, POSCO aims to establish itself as a global top-tier supplier of future mobility steel and secondary battery materials. In contrast, as a worldwide top 3 automaker, Hyundai aims to lead the future automobile market by stably procuring customized premium materials.
The two companies will cooperate in global joint ventures to overcome trade environment challenges to effective carbon-neutral transitions for low-carbon steel production in the steel sector. As part of this cooperation, POSCO will participate in Hyundai’s recently announced US steel investment as part of its end-to-end localization strategy for the steel business. This will allow POSCO to secure a foothold in the North American steel market, the media release said.
POSCO will be able to establish a flexible global production and sales system through this joint investment in a Louisiana steel mill, enabling smooth material supply to the US and Mexico regions. POSCO currently operates steel processing centers in North America (US/Mexico), including its automotive steel plant (POSCO-Mexico), serving various automakers as customers.
The two companies also plan to find sustainable collaboration points in supply chain establishment and next-generation materials development, creating synergy between POSCO Group’s competitiveness on secondary battery materials business, from lithium to cathode and anode materials, and Hyundai Motor Group’s eco-friendly future mobility technology.
“Based on the synergy between the two companies, we will be able to find solutions for sustainable growth across the group’s businesses, including steel and secondary battery materials, amid global trade pressures and paradigm shifts,” said Ju-tae Lee, President of POSCO Holdings.