Hyundai Motor and POSCO Join Forces to Produce Steel Using Hydrogen

Hyundai Motor Group Chairman Chung Eui-sun (second from the left in the photo) and POSCO Group Chairman Choi Jeong-woo are taking a commemorative photo after signing a business agreement at POSCO in Pohang on the 16th.

[Asia Economy Reporter Choi Dae-yeol] Hyundai Motor Group and POSCO Group have agreed to collaborate on the development of steel production technology utilizing hydrogen.

According to industry sources on the 22nd, the two companies recently signed a business agreement related to hydrogen projects, and it is reported that they also discussed jointly developing hydrogen reduction steelmaking technology. This technology is a process that reduces carbon dioxide emissions through a hydrogen-based reduction process, and both companies are conducting research on it as a national project.

A POSCO official stated, "We are each participating in the national hydrogen reduction steelmaking project to achieve carbon neutrality in the domestic steel industry, and future cooperation will be carried out at the level of participation in these projects."

The steel industry is considered a representative carbon-emitting sector. With global environmental regulations making carbon reduction a key issue for several years, a qualitatively different process from the past is now required. The two companies are reportedly aiming to achieve early carbon neutrality by removing carbon in the process of producing steel materials used by Hyundai Motor, such as automotive steel sheets.

Previously, the two groups agreed to cooperate in the hydrogen business sector and recently signed a business agreement covering the development of hydrogen energy utilization technology, the conversion of operating vehicles within POSCO steelworks to zero-emission hydrogen electric vehicles, and joint cooperation in hydrogen business.

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