CES 2026, the world’s largest technology trade show, has come to a close—and this year, one theme stood out above all others: robots. From humanoids and quadrupeds to sports and healthcare applications, robotics was everywhere on the show floor, signaling that the era of Physical AI—where AI and robotics come together in the real world—is quickly taking shape.

With Jae-bum Park, Senior Researcher at POSCO Research Institute, we look at what CES 2026 revealed about the future of robotics and where POSCO Group’s strengths could create new opportunities in this fast-growing industry.

Powering the Energy Transition: Robots Were Everywhere at CES 2026

At this year’s CES, robots were impossible to miss. Even in booths hosted by companies not traditionally associated with robotics, robot-related technologies appeared throughout the exhibition. The message was clear: AI-powered robots are moving beyond demonstrations and entering everyday life and industrial environments.

One of the most talked-about exhibits was Atlas, the humanoid robot presented by Boston Dynamics, Hyundai Motor Group’s robotics affiliate. Equipped with 56 degrees of freedom (DoF), Atlas demonstrated highly flexible movement and the ability to handle heavy-duty tasks involving loads of more than 50 kilograms—offering a glimpse of its potential in real industrial settings.

The exhibition also introduced a collaboration case involving POSCO and Boston Dynamics. On screen, Spot, Boston Dynamics’ quadruped robot, was shown moving through high-temperature facilities at a POSCO steelworks. In a noisy and heat-intensive environment, Spot was able to detect gas leaks and carry out precise inspections of equipment and infrastructure. The scene offered a compelling look at how robots are evolving from crowd-pleasing exhibits into reliable co-workers on industrial sites.

Another exhibit that drew attention came from Korean company Bodyfriend, which showcased a massage chair designed to feel almost like wearing a robotic suit. Its wearable AI healthcare robot, with independently moving arms and legs, attracted strong interest for its ability to analyze and stretch the user’s joints.

Robots were also making an impact in sports. Table tennis robots and combat robots once again proved popular with visitors, while sports robots introduced by Chinese companies such as Unitree and others showed just how far the technology has advanced. Some were able to analyze an opponent’s movements and track the trajectory of a ball in real time, providing highly detailed coaching.

Degrees of Freedom: What Makes Robot Movement More Sophisticated

As CES 2026 made clear, robot movement is becoming increasingly refined as technology advances. One term that many robotics companies use when discussing precision and flexibility is DoF, or Degree of Freedom. In simple terms, DoF refers to the number of joint axes a robot can move or control.

Generally speaking, the higher the DoF, the more independently controllable joints a robot has. This is particularly important for humanoid robots, which are expected to move in ways that resemble the human body. Industrial robot arms used in automated manufacturing processes typically have around 6 DoF, while humanoid robots usually range from 30 to 60 DoF. With 56 DoF, Boston Dynamics’ Atlas is close to the level required to mimic full-body human joint movement.

That said, increasing DoF also means adding more components such as motors, reducers, and sensors. In other words, the more sophisticated the movement, the higher the production cost. That is why robotics companies carefully design and allocate DoF based on each robot’s purpose and application.

Why Actuators Matter

An actuator is the drive unit that physically moves a robot’s joints. It can be understood as a complete joint system that combines a motor, reducer, sensor, and control circuit.

A motor on its own produces rotational motion. But for a robot arm to extend in a straight line or bend with precision, rotational movement alone is not enough. By integrating gears and electronic controls, an actuator enables more complex forms of motion, including both rotational and linear movement. If a motor is like a muscle cell, an actuator is the complete muscular joint that allows a limb to move in a controlled way.

For a humanoid robot with 56 DoF, roughly 56 precision actuators are needed.

Why Hyper NO Matters in the Age of Robotics

Electrical steel is also a critical material in motor manufacturing, accounting for roughly 20% to 30% of total motor production cost. This is especially important in robot motors, which must generate high output despite their compact size. In many cases, the performance of the electrical steel used inside the motor directly affects the motor’s overall efficiency and output.

To achieve better performance, the steel sheet must be made as thin as possible. If it is too thick, eddy currents* can form inside the material, causing energy loss in the form of heat.

*Eddy currents are swirling electric currents generated by electromagnetic induction when the magnetic field around a conductor changes rapidly.

POSCO’s high-performance electrical steel, Hyper NO, is designed to maximize magnetic performance even at extremely thin, paper-like thicknesses. The thinner electrical steel becomes, the more difficult it is to manufacture. In fact, only about five to six steelmakers worldwide, including POSCO, are capable of stably mass-producing electrical steel at the Hyper NO level. That makes it a strategic material with high technological barriers to entry—and an increasingly important one in the era of robotics and electrification.

Energy and Materials Will Help Power the Humanoid Robot Era

No matter how advanced a robot’s movement may be, it cannot function properly without enough energy. Today, humanoid robots typically operate continuously for only about two to four hours, making battery technology one of the biggest limiting factors in the industry.

At CES 2026, swappable battery systems emerged as a notable trend aimed at addressing that limitation. Boston Dynamics’ Atlas, for example, is known to operate continuously for around four hours, and it is even equipped with a function that allows it to replace its own battery when power runs low.

Tesla CEO Elon Musk recently predicted that there could be 10 billion humanoid robots within 25 years. If production reaches that scale, demand for actuators would rise into the hundreds of billions, making growth in demand for high-performance electrical steel almost inevitable. Once replacement demand is taken into account, the number of batteries required could also reach into the tens of billions.

This would also drive a sharp increase in demand for lithium, one of the key raw materials used in batteries. From this perspective, POSCO Group’s high-performance electrical steel technology and lithium assets are likely to draw growing attention as the robotics market continues to expand.

As robotics moves closer to real-world adoption, the future of the industry will depend not only on software and AI, but also on the materials and energy technologies that make advanced movement possible. In that future, POSCO Group is well positioned to play an important role.

Comprehensive review of cooperation with local steelmakers, stable material supply for Korean companies operating locally, and global expansion strategies for energy business

Chairman In-hwa Chang will preside over the Southeast Asia regional strategy meeting in Singapore on the 25th to review the complete localization execution strategies for the steel business.

This meeting was convened to strengthen regional business competitiveness and accelerate overseas growth strategies by establishing a complete localization operational system for overseas steel subsidiaries, amid growing uncertainties in the external business environment such as intensified global protectionism and slowing demand.

Chairman Chang, together with heads of key subsidiaries in the region, will review this year’s business plans and safety management policies, and focus discussions on the direction and execution tasks for advancing the supply chain of overseas subsidiaries.

In particular, the meeting will concretize execution plans for overseas growth strategies encompassing both steel and energy businesses, including:

• Expanding cooperation with local steelmakers in the region
• Establishing a stable material supply system for Korean companies operating locally
• Creating synergies between subsidiaries
• Expanding regional logistics hubs and improving operational efficiency
• Reviewing key issues of the Singapore LNG trading subsidiary established last year

Southeast Asia is a strategic market with high growth potential in downstream industries such as automobiles, home appliances, and construction. POSCO Group plans to systematically promote tailored growth strategies for each region by building a complete localization supply chain system based on its global business network.

POSCO Group has established production, processing, and distribution systems in the Southeast Asia region centered on key local subsidiaries, including PT. Krakatau POSCO in Indonesia, POSCO Yamato Vina, POSCO-Vietnam, POSCO-VST in Vietnam, POSCO-TCS and POSCO-Thainox in Thailand, and POSCO-Malaysia in Malaysia. Based on this, the Group is pursuing customer-focused sales strategies and expanding high value-added products, while continuously strengthening integrated regional competitiveness from raw material procurement to steel production and sales.

Meanwhile, Chairman Chang emphasized at the first group management meeting of the year in January, “We must materialize the fruits of future growth investments based on execution capabilities in times of crisis.” The Southeast Asia regional strategy meeting is part of efforts to further enhance the execution of overseas growth strategies in line with this management policy.

Highly rated for HyREX (hydrogen reduction steelmaking) technology and stakeholder communication.

POSCO Holdings has been named a “Top Performer” after ranking 4th globally in the Just Transition Benchmark assessed by the World Benchmarking Alliance (WBA), a global sustainability evaluation organization.

The WBA is a non-profit foundation launched at the 2018 UN General Assembly. It selects 2,000 most influential companies each year to evaluate their contributions to the UN Sustainable Development Goals (SDGs). This year’s the 2,000 most influential companies list includes 50 Korean companies, including POSCO Holdings.

In this assessment, POSCO Holdings ranked 4th out of over 1,600 global companies in the Just Transition Benchmark, while simultaneously securing 1st place both globally and in Korea within the Steel and Mining sector. The company also demonstrated its ESG leadership in the Nature Benchmark, ranking 87th globally, 16th in the Steel and Mining sector, and 1st in Korea.

The recognition as a “Top Performer” in the Just Transition is a direct result of the company’s efforts to reduce carbon emissions through its “HyREX” (hydrogen reduction steelmaking) technology and its successful communication with stakeholders. POSCO Holdings scored 75 out of 100 in the Just Transition Benchmark, placing it in the top five global companies.

In recognition of these achievements, POSCO Holdings attended the WBA event held during the World Economic Forum in Davos, Switzerland, where it shared sustainability cases with other top-tier global companies. The company further strengthened international cooperation by discussing decarbonization alternatives.

▲POSCO Holdings ranked 4th globally in the WBA’s Just Transition Benchmark and was named a Top Performer. (Source: WBA Website).

POSCO Holdings received high ratings from various global ESG rating agencies last year. In the assessment published by MSCI (Morgan Stanley Capital International), the company maintained an overall grade A for three consecutive years. Additionally, it received a risk score of 23.3 (medium risk) from Sustainalytics, placing its management capabilities in the top 4% of global steelmakers.

POSCO Group produces the core steel materials required to drive the global shift toward decarbonization. Through high-performance steel products and tailored solutions, the Group enhances safety, efficiency, and durability across industries including oil and gas, power generation, and renewable energy, contributing to the sustainable growth of the global energy sector. Here, we take a closer look at POSCO Group’s key steel products that are shaping the future of energy infrastructure.

Powering the Energy Transition with POSCO Group’s High-Performance Steel

The global energy landscape is undergoing a profound transformation. While technologies such as renewable energy, hydrogen, LNG, and CCUS continue to advance in pursuit of carbon reduction, it is advanced materials that ultimately enable these innovations to become reality. POSCO Group is supporting the advancement of next-generation energy infrastructure by providing steel engineered to perform under extreme environments and demanding conditions. From PosMAC, a high-corrosion-resistant alloy-coated steel used in renewable energy infrastructure, to steel forming the foundation of hydrogen pipeline systems, high-manganese steel recognized as a key material for liquefied hydrogen storage tanks, and LT-FH36, a core steel for LCO₂ carriers, POSCO’s high-performance steel products are applied across a wide range of energy transition industries, each tailored to specific application requirements.

Strengthening ESS Safety with PosMAC: A High-Corrosion-Resistant Alloy-Coated Steel

▲ PosMAC is used as a material for ESS battery cases developed by LG Energy Solution.

As renewable energy expands and power efficiency becomes increasingly important, demand for energy storage systems (ESS) continues to rise. Because ESS must store electricity safely and reliably over long periods, corrosion-resistant materials are essential. POSCO’s high-corrosion-resistant alloy-coated steel, PosMAC, is widely used in ESS battery enclosures, ensuring long-term stability and durability.

PosMAC offers more than five times the corrosion resistance of conventional galvanized steel, maintaining reliable performance even in coastal, high-humidity, and high-salinity environments. This durability helps reduce carbon emissions and overall lifecycle costs. As a result, PosMAC is extensively applied across renewable energy infrastructure, including wind turbine tower components, offshore wind structures, and solar module mounting systems. By extending equipment lifespans and reducing maintenance requirements, PosMAC plays a key role in driving the growth of sustainable energy.

Beyond ESS battery enclosures, PosMAC is expanding into a wider range of components, including racks and Battery Protection Unit (BPU) cases. Through close collaboration with customers, POSCO continues to enhance the product’s reliability and application range, reinforcing PosMAC’s position as a core material in the renewable energy industry.

Steel for Hydrogen Pipelines: The Foundation of Hydrogen Infrastructure

▲ Model of hydrogen pipeline steel exhibited at the POSCO Group booth at the 2025 International Climate Industry Expo.

Hydrogen is a cornerstone of future clean energy systems, requiring uncompromising safety throughout its entire value chain—from production and storage to transportation. In particular, pipelines transporting high-pressure gaseous hydrogen must resist hydrogen embrittlement* while maintaining reliable performance under extreme conditions.

*Hydrogen embrittlement: A phenomenon in which hydrogen penetrates a material, significantly reducing the ductility and toughness of the metal.

POSCO’s steel for hydrogen pipelines was designed to meet these stringent requirements. By replacing imported seamless pipes previously used for hydrogen transport, POSCO has enabled domestic production while offering strong cost competitiveness, supplying the product at approximately 70% of the cost of imported alternatives. The steel provides sufficient strength and toughness to withstand impact at temperatures as low as –45°C, not only in the pipe body (base material) but also at welded joints. After rigorous testing by international certification bodies, it has been confirmed to meet hydrogen pipeline performance standards, earning official recognition for its safety and reliability.

By 2025, POSCO plans to introduce high-strength materials compliant with API X70 standards for use in high-pressure environments of up to 100 bar. Demonstration and verification testing will be conducted in collaboration with Korea Gas Corporation (KOGAS), Korea Gas Safety Corporation (KGS), Korea Research Institute of Standards and Science (KRISS), and domestic steel pipe manufacturers.

*API (American Petroleum Institute): An organization that establishes international standards for pipelines and steel products used in the oil and gas industry.

Challenging –253°C: High-Manganese Steel for Liquefied Hydrogen Storage Tanks

▲ Model of high-manganese steel liquefied hydrogen storage tank exhibited at the POSCO Group booth at the 2025 International Climate Industry Expo.

Liquefied hydrogen (LH₂) is drawing global attention as a core technology for hydrogen transportation and storage in the hydrogen economy. Stored and transported at an ultra-cryogenic temperature of –253°C, liquefied hydrogen places significantly higher demands on storage tank materials than liquefied natural gas (LNG), which is handled at approximately –163°C. Against this backdrop, POSCO’s high-manganese steel is recognized as a key material capable of maintaining stability under such extreme conditions.

Independently developed by POSCO as the first of its kind in the world, high-manganese steel contains more than 22% manganese (Mn). It offers outstanding performance at cryogenic temperatures while offering a unique combination of high strength, excellent wear resistance, and non-magnetic properties that minimize electromagnetic effects. Its yield strength exceeds 335 MPa—approximately twice that of conventional stainless steel—while high elongation ensures excellent formability. In addition, relatively low manufacturing costs* contribute to its economic competitiveness. As a result, high-manganese steel is widely used in LNG infrastructure, including storage tanks, carriers, pipelines, and terminals.

*Manganese used in high-manganese steel is abundant worldwide and relatively inexpensive.

▲ Inside view of Tank No. 7 at Gwangyang LNG Terminal 2. High-manganese steel has been applied to the inner tanks of Units 5 and 6, and it is planned to be applied to Units 7 and 8 to be constructed in the future.

Over the past decade, POSCO’s high-manganese steel has proven its reliability through certifications from leading global classification and certification bodies. In 2022, the International Maritime Organization (IMO) formally adopted international technical standards governing its application, allowing the material to be used in cryogenic cargo and fuel tanks without separate flag-state approval. In 2024, it was further registered under standards applicable to both LNG and ammonia cargo and fuel tanks.

Building on its extensive experience in LNG infrastructure, POSCO is working to improve the performance of high-manganese steel so that it can reliably withstand impact even at –253°C. Going forward, the company plans to conduct demonstration projects and feasibility assessments through the fabrication of liquefied hydrogen storage tanks in collaboration with customers, aiming to secure both safety and economic viability for future hydrogen infrastructure.

Applied to the World’s Largest 22,000㎥ Vessels: Steel for LCO₂ Carriers

▲ AI virtual image of a liquefied carbon dioxide (LCO2) carrier.

Liquefied carbon dioxide (LCO₂) carriers are specialized vessels designed to safely store and transport carbon dioxide captured through CCUS processes after it has been cooled and compressed into liquid form. As the carbon capture and storage (CCS) industry continues to expand, the need for materials that support safer and more efficient vessel operations is becoming increasingly critical.

Unlike LNG and ammonia, which can be transported in liquid form under low-temperature conditions alone, carbon dioxide must be transported under both low temperature and controlled pressure. Scaling up liquefied carbon dioxide storage tanks therefore requires advanced steelmaking technologies.

POSCO’s LT-FH36 steel for LCO₂ carriers is engineered to maintain stable performance at temperatures as low as –60°C, reflecting the design conditions of low-pressure LCO₂ tanks. It can be applied in thicknesses of up to 50 mm and provides a yield strength exceeding 355 MPa. Even after post-weld heat treatment (PWHT), the steel maintains stable mechanical properties, ensuring long-term reliability in environments with elevated risks of corrosion and structural failure.

LT-FH36 is the world’s first steel to receive certification for use in large-scale liquefied carbon dioxide transport tanks. In 2023, at the international maritime exhibition Nor-Shipping, Lloyd’s Register (LR), a globally recognized British classification society, awarded POSCO official certification for steel used in large-scale LCO₂ carriers.

▲ The world’s largest 22,000㎥ liquefied carbon dioxide (LCO₂) carrier currently under construction at HD Hyundai Mipo. It uses POSCO’s LT-FH36 steel.(Photo source: HD Hyundai Heavy Industries)

LT-FH36 is currently applied to the world’s largest 22,000m³-class liquefied carbon dioxide carriers. In anticipation of the industry’s shift toward ultra-large storage tanks to improve transport efficiency, POSCO has also become the first in the world to complete the development and certification of LT-FH51, a higher-yield-strength steel grade. Over the longer term, the company plans to introduce even stronger grades, such as LT-FH70, further strengthening the safety and efficiency of next-generation LCO₂ carriers.

From PosMAC and steel for hydrogen pipelines to high-manganese steel and LT-FH36, POSCO Group’s independently developed high-performance steel products are delivering greater safety, efficiency, and sustainability across the energy industry. POSCO Group will continue to strengthen its materials technologies to help shape the infrastructure of the future global energy landscape.

Recently, POSCO Holdings announced a large-scale lithium investment plan as a core strategy to realize its vision of “Materials for the Nation,” laying a critical foundation for its ambition to emerge as a global lithium player. The investments target equity stakes in lithium mines in Australia and mining rights to the Hombre Muerto salt lake in Argentina, enabling POSCO Holdings to secure stable lithium production capacity while strengthening its global competitiveness. In this article, we take an in-depth look at the strategic significance of these investments and POSCO Group’s long-term lithium business outlook, together with Senior Research Fellow Jae-bum Park of the POSCO Research Institute.

Lithium is currently the most widely used material in electric vehicle batteries, yet its strategic value continues to rise rapidly. Beyond electric vehicles, lithium-based batteries are increasingly essential across a wide range of industries, including artificial intelligence, drones, next-generation aircraft, and space exploration. They also play a critical role in Energy Storage Systems (ESS), which store electricity generated from renewable energy sources such as solar and wind power. As demand continues to expand across these sectors, global efforts to develop faster and more efficient next-generation batteries are accelerating. Once commercialized, these advanced batteries are expected to drive a significant increase in lithium demand beyond current levels. In this context, lithium has firmly established itself as one of the most closely watched and strategically important raw materials worldwide.

Against this backdrop, POSCO Holdings, following extensive deliberation, decided to move forward with a large-scale lithium investment to strengthen its competitiveness in future advanced materials businesses. The initiative comprises two key pillars: an equity investment in lithium mines in Australia and the acquisition of mining rights to the Hombre Muerto salt lake in Argentina. These investments reflect POSCO Holdings’ strong commitment to securing a stable supply of high-quality lithium resources and positioning itself as a global lithium company.

Globally, only around ten lithium mines are classified as Tier-1, a designation reserved for assets with exceptionally high ore grades. Most of these are concentrated in Western Australia. POSCO Holdings plans to acquire equity stakes in two such Tier-1 assets: the Wodgina mine and the Mt Marion mine.

▲ POSCO Holdings, through a joint venture intermediate holding company established with Australia’s Mineral Resources, holds a 30% stake in the Wodgina mine (left) and the Mt. Marion mine (right). (Right photo source: Mineral Resources website)

The Wodgina mine has officially confirmed reserves of approximately 6.5 million tonnes of lithium carbonate equivalent (LCE)*, the standard reference form for lithium used in battery materials. Lithium at Wodgina is produced in the form of spodumene concentrate, which undergoes beneficiation to increase lithium content. With spodumene grades reaching approximately 5.5%, the Wodgina mine is widely regarded as a top-tier lithium asset. The Mt Marion mine likewise holds around 2.1 million tonnes of LCE in reserves, with spodumene concentrate grades approaching 5%, and is therefore also recognized as a high-quality lithium resource.

*LCE (Lithium Carbonate Equivalent): a standardized measure expressing lithium content in terms of lithium carbonate.

Currently, Mineral Resources holds a 50% stake in each mine. POSCO Holdings plans to establish a jointly owned intermediate holding company with Mineral Resources and invest approximately USD 765 million (around KRW 1 trillion) to acquire a 30% stake in the holding company.

By securing equity stakes in the Wodgina and Mt Marion mines, POSCO Holdings expects to stably secure approximately 270,000 tonnes of lithium concentrate per year, reflecting planned production capacity expansions at both sites. This volume is sufficient to produce around 37,000 tonnes of lithium hydroxide—enough to supply batteries for approximately 860,000 electric vehicles. Both mines are capable of producing spodumene concentrate, meaning the investment is expected to generate revenue not only through concentrate sales, but also by securing a stable supply via long-term offtake agreements.

In hard-rock lithium operations, raw material costs account for a substantial portion of total production costs, making integration between mining and downstream processing a critical determinant of cost competitiveness. Even with optimized production processes, there are inherent limits to reducing raw material costs. Accordingly, this investment provides a strategic foundation for generating raw material sales revenue, mitigating exposure to price volatility, and improving overall operational efficiency across the value chain.

In addition to its Australian mine investments, POSCO Holdings plans to acquire additional mining rights at the Hombre Muerto salt lake in Argentina. In 2018, the company already secured mining rights covering approximately 25,000 hectares in the northern portion of the salt lake, which spans a total area of roughly 60,000 hectares. Hombre Muerto is widely regarded as one of the world’s highest-quality brine resources, characterized by high lithium concentrations and low impurity levels. In light of expectations for rapidly rising global lithium demand, POSCO Holdings decided to pursue the additional acquisition.

The newly acquired area is adjacent to POSCO Holdings’ lithium processing plant currently under construction. The mining rights are held by NRG Metal, the Argentine subsidiary of Canadian company Lithium South. POSCO Holdings plans to acquire a 100% stake for approximately KRW 100 billion, enabling operational synergies with its existing salt lake assets.

The newly acquired salt lake asset is estimated to contain approximately 1.58 million tonnes of LCE, with an average lithium concentration of 736 mg/L, and is considered a premium brine resource due to its low impurity levels. Because the asset is located within the same Hombre Muerto salt lake already operated by POSCO Holdings, the brine composition is highly similar. This allows the company to leverage existing extraction processes, local infrastructure, and operational experience, creating favorable conditions for producing lithium at a competitive cost.

In parallel, POSCO Holdings is developing Direct Lithium Extraction (DLE) technology, moving away from the conventional evaporation pond method that requires several years. DLE offers shorter processing times, higher recovery rates, reduced land requirements, and lower water and environmental impact, making it a promising next-generation lithium extraction technology. With the additional mining rights secured, POSCO Holdings will be able to expand its lithium carbonate production infrastructure. Once DLE technology is fully validated and commercialized, the company expects to achieve more economical and efficient lithium production.

▲Ombre Muerto lithium salt lake, Argentina.

POSCO Group has established a foundation to produce lithium hydroxide domestically starting in 2024 by securing a supply of spodumene mined in Australia. This strengthened cooperation has expanded into equity investments in Australian lithium mines and broader collaboration with leading Australian research institutions, reinforcing R&D capabilities in critical minerals such as lithium and rare earth elements.

▲ POSCO Holdings signed an MOU with the Australian Nuclear Science and Technology Organisation (ANSTO) on November 19 for critical minerals technology development. From left: Ki-soo Kim, POSCO Group CTO, and Oleh Nakone, Group Executive at ANSTO.

In May, POSCO Holdings became the first Korean company to establish a dedicated overseas resource research hub with the launch of the Australia Critical Minerals R&D Lab. In November, it signed an MOU with the Australian Nuclear Science and Technology Organisation (ANSTO), Australia’s leading government-affiliated research institute and a central hub for critical minerals R&D. Through this partnership, the two organizations plan to pursue joint research projects in refining technologies and advanced material characterization, while holding regular technical exchange forums to strengthen global technological competitiveness.

By securing premium lithium resources, POSCO Group is establishing a stable supply base that will enable it to compete with top-tier global lithium producers over the long term. Worldwide, 65 companies are preparing for lithium production. Based on projected 2025 output, the top five producers are Albemarle, Ganfeng Lithium, SQM, Rio Tinto, and Tianqi Lithium.

Their primary competitive advantage lies in ownership of large-scale, high-grade lithium resources. Through this investment, POSCO Holdings is expected to secure annual lithium production capacity of approximately 93,000 tonnes by 2026—exceeding the roughly 70,000 tonnes produced by Tianqi, currently ranked fifth globally. Once ramp-up is complete and production stabilizes, POSCO Group has a strong chance of entering the global top 10 lithium producers.

By securing both spodumene from hard-rock mines and lithium from salt lakes, POSCO Holdings is also well positioned to expand refining capacity as market demand grows. This allows consideration of investments not only in lithium hydroxide, but also lithium carbonate, reducing supply-demand risks while diversifying the supply chain. Going forward, POSCO Group will continue to closely monitor lithium market conditions and policy developments, adjusting investment scale and timing with flexibility.

The recent Australian mine investments and the additional acquisition of salt lake mining rights in Argentina clearly demonstrate that POSCO Holdings’ future growth strategy is progressing successfully—and that its blueprint for securing premium lithium resources is steadily being realized.

POSCO Holdings signed a memorandum of understanding (MOU) on November 19 with the Australian Nuclear Science and Technology Organisation (ANSTO), Australia’s leading nuclear science and technology agency, to initiate a formal joint research cooperation on the processing and refining of critical minerals.

▲ POSCO Holdings signed an MOU with the Australian Nuclear Science and Technology Organisation (ANSTO) on November 19 for critical minerals technology development. From left: Ki-soo Kim, POSCO Group CTO, and Oleh Nakone, Group Executive at ANSTO.

Founded in 1953, ANSTO is Australia’s premier government research organisation, with world-class achievements in nuclear science, radiation medicine, materials science, and environmental and mineral resources research. In particular, the ANSTO Minerals business unit has distinguished itself in the development and commercialisation of several refining technologies for critical and strategic minerals such as lithium and rare earth elements, in addition to its support to critical minerals project development in Australia. ANSTO is one of the pillars of the Australian Critical Minerals R&D Hub, a collaboration between ANSTO, Geoscience Australia and CSIRO.

The signing ceremony was held via video conference connecting ROK and Sydney, Australia, and was attended by Ki-soo Kim, Head of POSCO N.EX.T Hub and POSCO Group CTO, Oleh Nakone, Group Executive of Nuclear Medicine and Commercial at ANSTO, and other key representatives from both sides.

Under the agreement, POSCO Holdings and ANSTO will pursue various collaborative projects related to the development of innovative mid-stream and down-stream processing technologies for lithium, rare earths, and other critical minerals. The two parties will also strengthen joint research cooperation through regular technical exchange meetings.

POSCO Group is currently producing battery-grade lithium on a commercial scale from lithium-containing hardrock and brine feedstocks, while also conducting demonstrations of the next-generation of processing technologies, such as Direct Lithium Extraction (DLE) technology. In the rare earth sector, the Group is actively exploring commercialization and technology internalization through collaborations and MOUs with domestic and overseas research institutions. In May this year, POSCO established the Australia Critical Minerals R&D Laboratories, the first overseas resource-specialized research base set up by a Korean company in Australia.

Ki-soo Kim, POSCO Group CTO, stated:
“POSCO Group is expanding its business scope beyond steel into the critical minerals sector, driving sustainable technological innovation. Today’s cooperation with ANSTO will serve as an opportunity to further strengthen the technological competitiveness of POSCO Group’s critical minerals business. By combining POSCO Group’s business capabilities with ANSTO’s critical and strategic minerals processing expertise, we will take the lead in the global critical minerals supply chain.”

Oleh Nakone, Group Executive Nuclear Medicine and Commercial at ANSTO, said:
“Through this collaboration with the POSCO Group, we can achieve the necessary innovation to enable both Australia’s and the Republic of Korea’s energy transitions in a sustainable way and diversify the supply chains of the economically significant critical minerals that both our countries require. Our applied R&D cooperation will deliver tangible results in the critical minerals sector.”

POSCO Holdings plans to continue expanding its network with major Australian research institutions, thereby enhancing its R&D capabilities in lithium, rare earths, and other critical minerals, and further boosting its global technological competitiveness.

POSCO Group, which holds core capabilities across the entire value chain—from energy business development to materials supply and Engineering, Procurement & Construction (EPC)—is accelerating its energy transition strategy by consolidating business capabilities and synergies in preparation for the upcoming decarbonization era. In particular, the Infrastructure Division, which includes diverse business units such as energy, construction, infrastructure, DX, and logistics, is expanding its energy transition initiatives centered on POSCO International. These efforts include advancing hydrogen co-firing power generation, which is emerging as a realistic power generation option during the decarbonization process, securing renewable energy sources such as onshore/offshore wind power and solar power, and accelerating the development of high-quality energy steel. Let’s take a closer look at POSCO Group’s energy transition strategy toward decarbonization.

POSCO International, which operates the 3.4 GW Incheon LNG complex power plant, is advancing a hydrogen co-firing initiative that replaces 20% of the LNG fuel used in its power plant with clean hydrogen. Hydrogen co-firing power generation refers to a method of generating electricity by combusting a mixture of natural gas (LNG) and hydrogen in a gas turbine*. Increasing the hydrogen ratio reduces CO₂ emissions generated during the power generation process. As it enables the use of existing power generation facilities while reducing carbon emissions, hydrogen co-firing power generation is emerging as a practical power generation method and a transitional bridge toward decarbonization.

*Gas turbine: A core component of combined cycle power plants that generates electricity by combusting fuel and converting high-temperature, high-pressure gas into rotational force. It can operate not only on natural gas but also on fuels such as hydrogen, offering flexibility for diverse energy mixes.

▲ Scale model of a gas turbine for hydrogen co-firing power generation under development by POSCO International.

POSCO International plans to replace Units 3 and 4 of the seven combined cycle power units at the Incheon LNG complex power plant with high-efficiency power generation facilities capable of using clean hydrogen fuel. Through hydrogen co-firing, the company expects to reduce CO₂ emissions by up to approximately 35%. Starting with Units 3 and 4, POSCO International will gradually transition additional facilities and increase the hydrogen co-firing ratio, ultimately aiming to operate the plant as a 100% hydrogen-based power generation facility by 2050.

Furthermore, to ensure a stable supply of clean hydrogen—which is essential for operating hydrogen co-firing power generation—POSCO International is actively participating in global clean hydrogen production projects in North America, the Middle East, and Australia. It is also developing transport and storage infrastructure using ammonia. In January 2024, POSCO International, together with POSCO Holdings, signed the “Strategic Cooperation Agreement (SCA) for a Joint Investigation of Clean Hydrogen Production Business” with ADNOC, an oil corporation run by Abu Dhabi, UAE. Through such partnerships, the company is proactively building the clean hydrogen supply infrastructure required for hydrogen co-firing power generation.

Photo source: POSCO International

Incheon LNG Combined Cycle Power Plant Operated by POSCO International POSCO International operates a total of seven combined cycle power generation units, with a facility capacity of 3,412 MW, accounting for about 10% of the metropolitan area’s power generation facilities. With very short start-up/shutdown times, the plant can respond quickly to fluctuations in national power demand, contributing to the country’s energy security. POSCO International applies IoT and big data to its power plant operation technology, running it as a smart power plant.

To address the global climate crisis, governments and corporations around the world are accelerating the transition to renewable energy sources such as offshore wind power and solar power. POSCO Group is also expanding its renewable energy business by integrating its differentiated capabilities across project operation, EPC, and materials supply, creating strong synergies.

POSCO International Operates Onshore and Offshore Wind Power Farms and Solar Power Plants

▲ View of the Sinan Green Energy onshore wind farm operated by POSCO International.

POSCO International is leading the future energy transition by leveraging the abundant onshore and offshore resources of Sinan, Jeollanam-do. Shinan Green Energy, a subsidiary of POSCO International, has installed 20 wind turbines in Jaeun-myeon, an area with excellent wind conditions, operating an onshore wind farm with a total capacity of 62.7 MW since 2016. The electricity generated is sufficient to supply approximately 31,000 households in the Sinan and Mokpo regions, reducing CO₂ emissions by roughly 49,000 tons annually.

As Shinan Green Energy expands its renewable energy initiatives centered around Sinan, Jeollanam-do, it is also actively engaging in community contribution activities. Since commercial operations began in 2017, the company has pledged 1.5% of annual revenue to Sinan’s development fund for 10 years, and has donated KRW 800 million to support the construction of a multifunctional community center—demonstrating its commitment to coexistence with the local community alongside renewable energy production.

Their wind power market expansion continues offshore as well. In 2017, POSCO International obtained approval to develop a 300 MW offshore wind farm west of Jaeundo Island in Sinan and has since continued its development efforts. The company is further expanding its offshore wind power business through increased collaboration with global industry leaders.

▲ Model of POSCO International’s renewable energy complexes displayed at the 2025 International Climate Industry Expo, showcasing onshore and offshore wind farms and solar power facilities in Sinan, Jeollanam-do

POSCO International also operates a large-scale 14.5 MW solar power complex in three phases across a former salt field in Palgeum-myeon, Sinan. By utilizing unused salt field land, the solar complex minimizes environmental impact while taking advantage of the high solar radiation characteristic of salt pans to generate efficient renewable energy. It produces approximately 18,000 MWh of electricity annually, enough to power around 5,300 households, which translates to a reduction of about 7,600 tons of CO₂ emissions and an environmental benefit equivalent to planting 2.2 million pine trees each year.

▲ Introduction video of POSCO International’s onshore and offshore wind farms and solar power complexes in Sinan, Jeollanam-do (Video source : POSCO International YouTube)

POSCO E&C Constructs the Ulsan Firefly Floating Offshore Wind Power Complex

▲ Rendering of the Ulsan Bandibbul floating offshore wind farm under development by POSCO E&C and Equinor.

POSCO E&C, drawing on extensive experience in offshore construction and power plant development, is advancing into the offshore wind power sector through collaboration with global offshore wind power specialists and domestic academic institutions. In 2023, it signed an MOU with Norway’s DNV to secure optimized design technology for fixed and floating offshore wind power substructures. In September 2024, it strengthened its competitiveness further by partnering with Equinor, Norway’s state-owned energy company and the only global developer with proven experience in floating offshore wind power.*

*Floating offshore wind power: Unlike conventional fixed offshore wind power, which installs foundation structures on the seabed, floating offshore wind power uses buoyant structures that support wind turbines on the ocean surface. This allows installation in deeper waters where stronger and more stable winds can be harnessed, minimizes seabed construction, reduces environmental impact, and enables more flexible installation and relocation.

POSCO E&C, in collaboration with Equinor, is constructing a 750 MW floating offshore wind power complex through the Ulsan “Firefly” offshore wind power project. The large-scale project involves installing fifty 15 MW wind turbines approximately 70 km east of Ulsan Port. POSCO E&C is strengthening its construction capabilities through activities such as Front-End Engineering Design (FEED) and conceptual design for onshore transmission lines.

Additionally, POSCO E&C is enhancing collaboration with POSCO to strengthen technological competitiveness and cost efficiency in offshore wind power. The company is particularly focused on independently developing floater technology using POSCO’s high-performance thick steel plates. Internalizing the technology for key components and structures is expected to serve as a crucial foundation for achieving leadership not only in the domestic market but also in the global offshore wind power market.

Furthermore, POSCO Group is accelerating the energy transition by collaborating with global renewable energy companies to lead and strengthen competitiveness in the offshore wind power industry.

POSCO Future M Produces Renewable Energy through Rooftop Solar Panel Structures

▲ Solar power facilities at POSCO Future M’s Gwangyang cathode plant, installed in February 2024 in collaboration with POSCO International. Since 2021, POSCO Future M has also operated rooftop and parking lot solar installations at its Sejong anode plant, producing 209 MWh of renewable energy annually.

POSCO Group is proactively expanding renewable energy production and usage across its subsidiaries. In February 2024, POSCO Future M, in collaboration with POSCO International, installed 2.2 MW of rooftop solar panels at its Gwangyang cathode material plant. POSCO International produces 2.6 GWh of renewable energy annually from these panels and secures Renewable Energy Certificates (RECs), which POSCO Future M purchases to support its RE100 commitments—creating a sustainable circular system.

Recently, POSCO Future M signed an agreement with SK Innovation E&S to jointly promote a solar power generation project. SK Innovation E&S will install 2.5 MW of solar panels on the factory rooftops and parking lots, generating 2.8 GWh of renewable electricity annually. POSCO Future M plans to purchase this electricity for plant operations, expecting to reduce carbon emissions by approximately 1,300 tons per year.

Going forward, POSCO Future M plans to review additional installations of solar power generation facilities at sites such as its dedicated Gwangyang NCA cathode material plant, and to diversify its renewable energy procurement methods through Power Purchase Agreements (PPAs) and REC purchases.

Materials also play a critical role in POSCO Group’s diverse energy businesses. Renewable energy, Energy Storage System (ESS), LNG, hydrogen, and Carbon Capture, Utilization and Storage (CCUS) projects require specialized steel products tailored to their unique operational environments. Because temperature, pressure, and corrosion conditions vary greatly by application, general structural steel cannot ensure adequate performance or safety. POSCO produces and supplies high-quality, proprietary energy steel designed specifically for various domestic and international energy applications.

▲ POSCO’s energy steel products at the 2025 International Climate Industry Expo — PosMAC for ESS, steel for hydrogen pipelines, and high-manganese steel.

A representative example is PosMAC (POSCO Magnesium Alloy Coating Product), an ultra-corrosion resistant alloyed steel plate that applies an alloy coating layer containing magnesium (Mg) and aluminum (Al). It offers superior strength and durability compared to conventional galvanized steel sheets. Its excellent corrosion resistance extends product lifespan by reducing replacement cycles, thereby reducing raw material usage and lowering carbon emissions during manufacturing and transportation. POSCO plans to expand the use of PosMAC in key ESS components, such as battery cases, racks, and BPU cases, through collaboration with customer companies.

▲ LNG storage tank model built with POSCO high-manganese steel.

POSCO’s high-manganese steel—developed as a world first—has higher strength than stainless steel and remains intact even at -196°C, making it suitable for safely storing and transporting LNG and liquefied hydrogen. POSCO is also strengthening market competitiveness through the development of additional energy-related materials, including steel for hydrogen pipelines that resist high pressure and hydrogen embrittlement, and LT-FH36 steel for liquefied CO₂ carriers. POSCO Group plans to build a global energy transition ecosystem by expanding the development and production of high-quality special steel made with its proprietary technologies.

POSCO Group’s energy transition strategy goes beyond short-term carbon reductions and focuses on building a sustainable industrial ecosystem. We look forward to your continued interest and support as POSCO Group advances toward the decarbonization era and drives its energy transition initiatives forward!

Among the tightening global environmental regulations aimed at tackling the climate crisis, the decarbonization of the steel industry is emerging as a critical task for building a sustainable future. POSCO Group is leading a new paradigm in the steel industry through its differentiated decarbonization strategy, which includes HyREX technology, carbon-reduction bridge technologies, and a transition to clean energy. This special feature takes a closer look at POSCO Group’s “2050 Decarbonization Roadmap” and its phased technology deployment strategies that will drive innovation in steel decarbonization.

Towards a Sustainable Future! POSCO Group is Leading the Decarbonization Transition in the Steel Industry

POSCO Group has established its “2050 Decarbonization Roadmap,” which lays out a comprehensive strategy to decarbonize its steel business, the group’s most carbon-intensive sector. The roadmap covers critical areas such as raw materials, investment, energy, and technological innovation. POSCO Group keeps driving its decarbonization journey forward through continuous monitoring and annual updates.

▲POSCO’s “2050 Decarbonization Roadmap,” which includes a comprehensive mid- to long-term strategy encompassing technology development, facility investment, raw material procurement, and energy procurement. [From the 2024 POSCO Holdings Sustainability Report]

Development of Carbon Reduction Bridge Technologies

During the transition to hydrogen reduction ironmaking, POSCO Group is striving to reduce carbon emissions through the parallel deployment of multiple bridge technologies, including the use of low-carbon fuels and raw materials, the introduction of large-scale EAFs, and CCUS demonstration projects. With intelligent factories powered by data and AI, POSCO Group is improving energy efficiency and ensuring a safer working environment.

① Blast Furnace-Based Carbon Reduction Technologies

The blast furnace, commonly referred to as a smelting furnace, serves as a core facility in steel production. Coal (coke) and iron ore (sintered ore) are fed into the top of the furnace and layered, while hot air is injected from the bottom, melting the raw materials to produce molten iron. To reduce carbon emissions from blast furnaces, improving the raw materials and reduction processes is essential. POSCO Group is advancing blast furnace-based carbon reduction technologies through three main methods: pellets, Hot Briquetted Iron (HBI), and hydrogen-rich gas.

Pellets are made by crushing and screening iron ore and shaping it into uniform spherical forms. These are used in blast furnaces as a substitute for sintered ore, which was traditionally used as ironmaking feed. Simply switching raw materials from sintered ore to pellets can reduce the amount of fossil fuels required in sintered ore production, thereby lowering the CO2 emissions intensity. In addition, pellets melt and are reduced more effectively at higher temperatures than sintered ore, which helps decrease coal consumption in the blast furnace.

Hot Briquetted Iron (HBI) is produced by removing oxygen from iron ore to make Direct Reduced Iron (DRI) and then compressing it into pillow-shaped briquettes, which are charged into the blast furnace. This method significantly reduces the amount of coal required for the reduction process. Assuming 100 kg of HBI are used to produce one ton of molten metal, approximately 100 kg of CO2 emissions can be avoided.

Hydrogen-containing gas method uses natural gas (NG), a low-carbon fuel, as a reducing agent instead of coal. The main component of natural gas, methane, is reformed into carbon monoxide and hydrogen during the reforming process, generating hydrogen-containing gas. This gas is then injected into the tuyere at the bottom of the blast furnace and used as a reducing agent, which helps reduce coal consumption. In the first half of 2023, POSCO installed a natural gas injection system for its blast furnaces and confirmed its carbon reduction effect. The company is also working with 29 industry–academia–research partners on the national R&D project COOLSTAR.* Based on this facility, POSCO is developing hydrogen injection technology for blast furnaces and plans to package it as a bridge technology to establish a low-carbon blast furnace model.

**COOLSTAR (CO2 Low emission technology of Steelmaking And hydrogen Reduction): A national R&D project led by the Ministry of Trade, Industry and Energy of Korea to develop hybrid steelmaking technologies that reduce CO2 emissions.

② BOF-Based low Hot Metal Ratio (HMR) Operation Technology
The basic oxygen furnace (BOF) is a facility that produces refined steel (ingot steel) by blowing oxygen into molten iron (molten metal) from the blast furnace to remove impurities and adjust the temperature and composition. Since more than 80% of the CO2 emissions generated in the production of one ton of ingot steel occur during the molten iron production stage, reducing the amount of molten iron used in the BOF is critical for cutting carbon emissions. POSCO Group is developing low Hot Metal Ratio (HMR) operation technology to lower the proportion of molten iron charged into the BOF. Let’s take a look at two representative technologies used in low-HMR operations.

The Melted Scrap Charging Method reduces the amount of molten iron used in the converter by blending molten iron from the blast furnace with ingot steel produced in the EAF. Since the EAF uses recycled steel scrap as raw material, its carbon emissions are significantly lower than those of the blast furnace. Therefore, by utilizing scrap melting and charging technology in the EAF, producing 2.5 million tons of molten metal annually is expected to achieve carbon reductions of up to 3.5 million tons compared to conventional blast furnace operations. However, because of the residual elements in scrap, there are limitations in manufacturing high-grade steel products. To address this, POSCO Group is developing a technology that combines blast furnace molten iron with EAF molten metal to simultaneously achieve carbon reduction and the production of high grade steel.

The Oxygen Top & Bottom Blown (OTBB) Converter Technology increases the amount of steel scrap charged into the BOF by injecting oxygen from both the top and bottom to secure additional heat sources. In BOF, no external heat is supplied; the heat required for steelmaking is generated by the oxidation of impurities in the molten iron. Therefore, reducing the amount of molten iron and increasing the scrap ratio can lead to a drop in molten iron temperature. By injecting oxygen not only from the top but also from the bottom, the Oxygen Top & Bottom Blown (OTBB) Converter Technology enhances secondary combustion and maximizes heat transfer efficiency, effectively overcoming this limitation.

In this way, POSCO Group has developed technologies to increase scrap utilization by leveraging its existing BOF facilities. By optimizing scrap charging practices and adopting a two-stage BOF process, the company has expanded the scrap ratio to over 30%. In addition, when applying POSCO Group’s proprietary FINEX molten iron in low Hot Metal Ratio (HMR) operation technology, the molten iron ratio (HMR) in the BOF can be lowered to below 70%, which is expected to significantly reduce greenhouse gas emissions in the ironmaking process. Through these measures, POSCO plans to respond in the short term to growing customer demand for low-carbon steel products before fully transitioning to decarbonized production facilities.

EAF-Based Low-Carbon Steel Production Technology

Building an EAF production system to respond to EU CBAM and customer demand for carbon reduction

To accelerate global decarbonization, prevent carbon leakage, and protect the competitiveness of its domestic industries, the EU plans to fully implement the Carbon Border Adjustment Mechanism (CBAM) starting in 2026. CBAM is a system that imposes additional costs (carbon taxes) on products imported into the EU based on the amount of carbon emissions generated during their production processes. In response to this international regulatory shift and increasing customer demand for carbon reduction, POSCO Group established a dedicated CBAM response team in August 2022. The company is actively collaborating with POSCO Europe and POSCO International to strengthen its response to CBAM.

▲To transition to a carbon-reducing production system, POSCO invested approximately 600 billion won in February of last year to begin construction on a large-scale electric furnace plant within its Gwangyang works with an annual capacity of 2.5 million tons. Full-scale operation is scheduled for 2026. The photo shows a panoramic view of the Gwangyang works.

In addition, to establish a low-carbon production system, POSCO Group began construction of an EAF plant capable of reducing CO2 emissions by up to 75% compared to conventional blast furnaces, with an annual capacity of 2.5 million tons at Gwangyang Works in February 2024. The facility is targeted to commence operation in 2026. By applying Melted Scrap Charging Method, the plant is also expected to enable the production of high grade steel, which was previously difficult to achieve with traditional EAF operations. Through this initiative, POSCO aims not only to actively respond to CBAM but also to ensure a stable supply of low-carbon steel products.

Development of Carbon Capture, Utilization and Storage (CCUS) Technologies

▲An exhibition model showing POSCO Group’s carbon capture, utilization, and storage (CCUS) technology process.

POSCO and the POSCO Holdings Future Technology Research Laboratories are developing a wide range of CCUS* technologies to capture and recycle CO2 emitted from steelworks, thereby reducing overall carbon emissions. Currently, CCUS technologies are being demonstrated through multiple approaches, among which three representative applications stand out.

*Carbon Capture, Utilization and Storage (CCUS): A technology that captures large volumes of CO2 emissions and either utilizes them directly for industrial purposes, converts them into higher-value products, or stores them permanently or semi-permanently.

CO2 Injection and Conversion Technology in Coke Ovens

The first approach involves separating and capturing CO2 generated from the steelmaking process and injecting it into coke ovens, where it serves as a heat source for by-product gas power generation. Since 2021, POSCO has been collaborating with Research Institute of Industrial Science & Technology (RIST) on a joint public–private national R&D project to demonstrate CO2 capture and conversion technologies. A demonstration test conducted at Pohang Works in January 2024 confirmed that high-purity refined energy is not required, and that medium-purity CO2 can be effectively injected into coke ovens.

The demonstration also showed an increase in the calorific value of by-product gas (COG, Coke Oven Gas) generated from the coke ovens. COG is used as an energy source for fuel gas, by-product hydrogen production, and high value-added chemical products, and higher calorific value directly enhances its utility. Recognizing these achievements, this coke oven CO2 injection and conversion technology was selected as one of the MOTIE’s Top 10 R&D Technologies, and received the Minister’s Award.

Development of Mineral Carbonation Technology

The second approach is to apply mineral carbonation technology. The POSCO Holdings Future Technology Research Laboratories is developing CCU technology that mineralizes captured CO2 for onshore storage or reuses it as construction material.

▲Participants pose for a commemorative photo at the launch meeting for the ‘Pilot Project for Land-based Carbon Dioxide Storage in Abandoned Mining Sites’ in August 2024.

In July 2024, POSCO Holdings was selected as the lead organization for the national pilot project “Onshore Storage of CO2 Using Abandoned Mine Shafts,” organized by the Ministry of Trade, Industry and Energy (MOTIE). This project is designed to react CO2 emitted from steelworks with steel slag to immobilize the carbon and produce carbonated slag at a scale of 300 tons, which is then backfilled into abandoned mine shafts. In November 2023, POSCO Holdings began operating a demonstration plant in collaboration with Samcheok. Based on this pilot project, POSCO Holdings aims to address the carbon storage shortage, a critical limitation of national CCS initiatives, and contribute to the decarbonization of the steel industry.

Phased Commercialization of CCS

The third approach is to gradually apply CCS technology. POSCO has been exploring the most suitable carbon capture technologies for various facilities including coke ovens, sinter plants, hot blast stoves and power plants by leveraging commercially available CO2 capture solutions. Based on these assessments, POSCO plans to gradually expand CO2 capture starting with the most efficient and effective facilities.

After being compressed, liquefied and purified, the captured CO2 gains the physical properties needed for transportation and storage. The processed CO2 is injected into saline aquifers or depleted oil and gas fields that have sealed geological structures, where it is stored permanently. The sealed geological structure means a formation where non-permeable rock layers overlie permeable sedimentary layers, blocking the gas and keeping it from escaping.

POSCO Group is exploring promising CO2 storage sites not only at the Donghae Gas Field but also in Southeast Asia, including Indonesia, and in northwestern Australia. In 2024, POSCO Group was selected for a program by the Export-Import Bank of Korea that supports feasibility studies for international emission reduction projects. Through this program, the company carried out a preliminary CCS feasibility study at PT. Krakatau POSCO in Indonesia. Based on the findings, the company plans to further develop its CCS application methods and gradually expand their use to domestic steel mills.

POSCO’s Hydrogen Reduction Ironmaking (HyREX) Technology

▲POSCO’s HyREX hydrogen reduction ironmaking technology, displayed as a model at the 2024 Climate Industry International Expo.

POSCO is Securing a Low-Carbon Iron Ore Supply Chain through Fluidized Bed Reduction Furnaces

Hydrogen reduction ironmaking is a process that reduces greenhouse gas emissions in the ironmaking process by replacing the reducing agent and coking coal traditionally used to remove oxygen from iron ore with hydrogen. POSCO is developing hydrogen reduction ironmaking based on the fluidized bed reduction furnace technology of its already commercialized FINEX process. Unlike the shaft furnace method commonly used by overseas steelmakers, the fluidized bed reduction furnace has distinct differences in terms of raw material and equipment technology. Shaft furnaces require high-grade DR-grade pellets processed into uniform spherical shapes as raw materials, whereas fluidized bed reduction furnaces can directly utilize ordinary iron ore fines from mines without any additional processing, offering a clear cost and operational advantage.

Of the world’s total iron ore supply of 1.7 billion tons, DR-grade pellets account for only about 4%. This limited supply makes it difficult to meet global steel demand. If hydrogen reduction ironmaking is fully commercialized, competition for pellets is expected to intensify among overseas steelmakers that use shaft furnace technology.

In this increasingly competitive environment, POSCO Group has a strong advantage: by adopting the fluidized bed reduction furnace method, it can use iron ore fines directly from the mine without additional processing, which keeps production costs relatively low and improves raw-material security. In terms of equipment technology, the fluidized bed reduction furnace also allows easier temperature control than shaft furnaces. POSCO’s fluidized bed reduction furnace-based FINEX process, which incorporates hydrogen injection and direct reduced iron (DRI) production technology, is regarded as the most competitive technology in hydrogen reduction ironmaking.

Pushing for HyREX Commercialization by 2030

In 2021, POSCO Group initiated the permitting process to prepare 1.35 million square meters of land at its Pohang Works for the construction of a hydrogen reduction ironmaking plant. In July 2022, POSCO signed an engineering collaboration agreement with Primetals Technologies, a company with extensive experience in FINEX plant design. Based on this agreement, the two companies are jointly designing the main facilities of the HyREX demonstration plant and plan to construct a pilot facility with an annual capacity of 300,000 tons at Pohang Works.

POSCO Group aims to develop and complete the commercialization technology for HyREX through a demonstration project by 2030. Once national infrastructure, policy and institutional frameworks are in place, and market acceptance is secured, the company plans to gradually convert its existing blast furnace facilities to HyREX facilities.

Strengthening Global and Domestic Cooperation Networks for Hydrogen Reduction Ironmaking Development

Hydrogen reduction ironmaking has been recognized for its strategic importance to national security and the national economy. In January 2024, it was designated as a national strategic technology in Korea. In May 2024, “Development of Optimized Iron Ore Technology for Korean-type Hydrogen Reduction Ironmaking” (Steel Sector) was selected as one of the Global R&D Flagship Projects by the Ministry of Science and ICT. Building on this strong domestic consensus, POSCO Group is preparing a Korean-type hydrogen reduction ironmaking demonstration project in conjunction with government R&D programs, with a target of achieving commercialization by 2030. The company is also actively participating in various international technology development collaborations to accelerate global decarbonization in the steel industry.

Since 2023, POSCO Group has been operating the HyREX R&D Partnership to accelerate the development of carbon-reduction technologies by moving beyond competition to collaboration with global steelmakers. A total of 19 related companies—including global steelmakers, raw-material suppliers, and energy firms—are participating in this partnership. The first conference was successfully held in November 2024. POSCO has also been collaborating with the World Steel Association (WSA) and Swedish steelmaker SSAB. In 2021 and 2022, the company led the Hydrogen Iron & Steel Making Forum (HyIS Forum), and since 2023, the initiative has been expanded into the Breakthrough Technology Conference, which is organized by the WSA.

▲Content embodying POSCO Group’s decarbonization vision is on display at the 2025 Climate Industry International Expo. POSCO Group is pursuing substantial carbon reduction and expanded clean energy transition through AI and bridge technologies, centering on Korea’s Hydrogen Reduction Iron and Steel (HyREX).

Encompassing hydrogen reduction ironmaking, carbon-reduction bridge technologies, and energy transition, POSCO Group’s diverse real options strategies are expected to play a key role in accelerating the steel industry’s journey toward decarbonization. POSCO Group will continue to advance its decarbonization efforts in the steel industry, driven by technological innovation and a clear strategic roadmap. Follow POSCO Group’s decarbonization journey toward a more sustainable future!

Sharing the latest trends in lithium refining technology and expanding technology-focused networks to contribute to global supply chain stability

POSCO Holdings hosted the 1st Korea–Australia Critical Minerals Forum 2025: Lithium Extraction Technologies jointly with Australia’s national science agency, CSIRO on October 23.

POSCO Holdings, which established the Australia Critical Minerals R&D Lab in May—the first resource-specialized research institute in Australia by a Korean company—has been continuously strengthening its R&D cooperation network with Australian critical mineral research institutions through joint forums and other initiatives.

The forum brought together participants from POSCO Holdings, POSCO Pilbara Lithium Solution, and from Korea: the Korea Institute of Geoscience and Mineral Resources (KIGAM), Gwangju Institute of Science and Technology (GIST), Seoul National University, and Hanyang University. From Australia, attendees included experts from the three national science agencies that collectively form Australia’s Critical Minerals R&D Hub—CSIRO, the Australian Nuclear Science and Technology Organisation (ANSTO), and Geoscience Australia—as well as academic representatives from The University of Melbourne and Murdoch University.

Given the participants were based in both Korea and Australia, the forum was conducted online, connecting Seoul POSCO Center, Pohang POSCO N.EX.T Hub, and major Australian cities including Sydney, Melbourne, Perth, and Canberra.

In July, representatives from Australian mineral research institutions and universities visited the Pohang POSCO N.EX.T Hub to exchange technologies in the field of critical mineral raw materials, agreeing to create synergies through ongoing technical exchanges and research cooperation. Following this, in September, POSCO Holdings signed a memorandum of understanding with CSIRO on research cooperation in carbon reduction steel technologies and critical mineral refining technologies, continuing to explore synergy creation opportunities.

At the forum, POSCO Group, Korea’s leading mineral research institutions and universities, and Australia’s key research organizations engaged in in-depth discussions on the latest refining technologies for ore and brine lithium, Direct Lithium Extraction (DLE) and other innovative technologies, as well as Korea–Australia cooperation strategies for building a sustainable lithium supply chain.

Ki-soo Kim, Head of POSCO N.EX.T Hub, stated:

“POSCO Group is not only commercially producing battery-grade lithium from ore and salt lakes, but also conducting demonstrations of next-generation technologies such as Direct Lithium Extraction (DLE). The core of competitiveness in the lithium business lies in securing superior technology. To this end, we will continue to pursue closer research cooperation with experts from both countries.”

Dr. Yulia Uvarova, Deputy Director of CSIRO Mineral Resources, said:

“Australia and Korea will be the most important partners in preparing for the era of energy transition. Let us join forces to lead the global critical minerals industry through technological innovation.”

POSCO Holdings plans to continue expanding its technology-focused network for critical minerals through diverse collaborations with Australia, thereby contributing to the stabilization of the global critical minerals supply chain.

▲ On October 23, POSCO Holdings held the 1st Korea-Australia Core Minerals Forum in collaboration with the Commonwealth Scientific and Industrial Research Organization (CSIRO) of Australia.