Steel is the framework of the world and one of the great assets that has supported human civilization. Since iron first emerged as a material, humanity has been able to create things larger than ourselves and build the infrastructure essential to life. We have benefited enormously from steel. Yet today, the steel industry, long a pillar of national economies, stands at an unprecedented crossroads. What future awaits steel amid this upheaval? And what breakthrough strategy does POSCO have to overcome these challenges? Beyond the “age of fire” that helped lead human civilization, this is the story of steel as it overcomes crisis and is reborn.

The crisis now facing the steel industry is on an entirely different level from a simple economic downturn. This is because an unprecedented combination of risks is arriving all at once: structural oversupply led by China, protectionism and tariff barriers from the United States, and carbon regulations from the European Union (EU). This is what we call a Perfect Storm.

*Perfect Storm: A term referring to an enormous compound crisis in which individual adverse factors—such as oversupply, protectionism, and carbon regulation—overlap at the same time, dramatically magnifying their destructive impact.

These changes are not limited to Korea. In response to the worsening climate crisis, the global trend under the Paris Agreement is to expand the scope of carbon emissions beyond companies’ direct activities to include all indirect emissions, such as those from suppliers and the product-use stage—namely, Scope 3. As a result, steelmakers around the world are facing mounting climate-related pressure. This is why so many are urgently seeking a breakthrough to meet rapidly growing demand for low-carbon steel.

It’s really changing all aspects of our lives. It’s clear that we need to transform the whole society, not just how we produce things, but also how we use them and, for example, how our energy system works.

The first is to continue producing steel the conventional way the second is to seek a new path toward ‘decarbonization’

At this crossroads, there are two possible paths before us. The first is to continue making steel in the conventional way. In the short term, this may appear to be the easier option, allowing companies to avoid additional costs and respond to immediate goals. But the moment an innovative company emerges that has overcome the barrier of carbon regulation, those that chose this path will inevitably fall behind in the market.

The second is to take on the challenge of decarbonization transition head-on, in step with the global direction of environmental regulation. The massive investment required may be burdensome, but it is the only path that can secure leadership in the future market and achieve sustainable growth.

In the end, the choice is ours, and the future of the steel industry also depends on us.

Here are the people moving one step ahead to build the future of steel: the key figures leading POSCO’s Korean-style hydrogen reduction steelmaking project.

Hydrogen reduction steelmaking (HyREX) is a technology that uses hydrogen, instead of coal, as the reducing agent in the ironmaking process that produces molten iron, removing oxygen from iron ore. Unlike the conventional method, in which oxygen in iron ore combines with carbon and emits carbon dioxide (CO2), this process combines oxygen with hydrogen and produces water (H2O) instead of carbon dioxide.

The conventional blast furnace process—commonly referred to simply as the blast furnace method—became the global standard because it can produce large quantities of molten iron economically. However, it has inherent limitations, including air pollution and waste generation caused by the use of coal. By contrast, hydrogen reduction steelmaking can dramatically reduce carbon emissions compared with the conventional blast furnace process, making it a next-generation core technology that steelmakers around the world are racing to commercialize.

Building on its already commercialized FINEX process, POSCO is developing hydrogen reduction steelmaking technology based on a fluidized-reduction furnace. Many overseas steelmakers are developing shaft-furnace-based processes that require high-grade DR Grade pellets, which are made by processing iron ore into uniformly sized spherical forms. POSCO’s HyREX technology, by contrast, can use fine iron ore directly without additional processing, giving it strong cost competitiveness. It also offers the advantage of precise temperature control, helping secure high-quality reduction performance. To commercialize HyREX, POSCO’s dedicated task force is not limiting itself to in-house research, but is expanding its scope globally and seeking answers together with partners around the world.

I believe the hydrogen reduction ironmaking of the future will evolve into an integrated hub of hydrogen, energy, and steel. This will serve as a massive industrial catalyst, not only for Korea’s industries but for industries worldwide.

Even as companies carve out paths of innovation to achieve decarbonization, the successful decarbonization of the steel industry cannot be accomplished through the technological development of any one company alone. Looking back at history, every major transformation was supported not merely by the solitary efforts of individual companies, but by cooperation and support at the national level. The most representative example is the semiconductor industry. Korea stands today as a semiconductor powerhouse because, about 40 years ago, public-private cooperation laid the foundation.

In the early 1990s, the companies dominating the memory semiconductor market were mostly from the United States and Japan. To hold back Korean firms, they erected a high technological barrier in the form of patents. Korean companies faced tremendous difficulty overcoming it. At that critical moment, the government, companies, research institutes, and academia joined hands to form a consortium. This led to the large-scale industry-academia-research-government project behind the development of 64M DRAM in 1992, a landmark achievement in semiconductor history. That success became the decisive turning point that enabled Korea to secure leadership in the memory semiconductor market and establish its industrial foundation. It was a miracle made possible because the necessary foundation—capital, institutions, infrastructure, and talent—had been put in place. The same holds true for the decarbonization of the steel industry. For hydrogen reduction steelmaking to become reality, a robust hydrogen ecosystem must be established so that hydrogen itself can become economically viable.

As the European Union (EU) has begun imposing taxes on carbon emissions generated during production through the CBAM*, concerns are growing that as the rates continue to rise, Korean steel products may lose cost competitiveness by the mid-2030s, ultimately putting the vast European market at risk.

*CBAM(Carbon Border Adjustment Mechanism) : A system that imposes tariff measures based on the carbon emissions of imported products crossing a border.

The steel industry is not only important for past and present generations, but is also a vital industry for our descendants. For it to become a more sustainable industry, the entire nation and industry as a whole must come together.

Under these circumstances, there is an urgent need for long-term, government-level policy support so that companies can move forward with large-scale investments with confidence. For example, Germany is actively promoting GET H2, a major pipeline initiative to build a 5,100-kilometer network connecting hydrogen production sites and demand centers by 2030. Korea, too, must accelerate the development of a hydrogen infrastructure ecosystem in step with this global trend. Fortunately, as part of these efforts, the K-Steel Act—special legislation aimed at strengthening the competitiveness of the steel industry and supporting its carbon-neutral transition—passed the National Assembly plenary session last year, providing a legal foundation. In addition, the Korean-style hydrogen reduction steelmaking national R&D project has begun taking its first steps. These developments are expected to serve as important building blocks in designing a sustainable future for the steel industry.

Steel remains with us today in many different forms. So what form will steel take as it evolves in the future? Just as it did in the distant past, steel will continue to temper itself for the everyday lives of humanity far into the future. We hope you will continue to join us on this journey of The Evolution of Steel.

▼[The Evolution of Steel] View Full Version ↓

With proven profitability and growth potential in the lithium sector, proactive investments will propel POSCO into a Global Top 5 lithium company by 2033.

For the steel sector, growth investments in promising overseas markets will begin in earnest, with returns reinvested into the domestic low-carbon transition.

The energy sector will contribute to national energy security by expanding LNG trading and entering the renewable energy market.

To resolve the holding company discount, the ownership stakes in listed operating subsidiaries will be optimized.

POSCO Group announced a new future growth strategy aimed at restructuring its business portfolio around resources, extending beyond steel to include lithium and energy, thereby contributing to national industrial security and strengthening the supply chain.

On July 2, POSCO Group hosted its ‘CEO Investor Day’, where it unveiled its vision to become a ‘Representative Supplier of Core Resources for the Nation’ by establishing a ‘Triple-core’ framework encompassing Industrial Resources (Steel), Strategic Resources (Lithium, Cathode and Anode Materials, Rare Earths, etc.), and Energy Resources (LNG, Renewable Energy).

Standing before investors, Chang In-Hwa, CEO of POSCO HOLDINGS, emphasized, “At a time when external uncertainties are intensifying due to supply chain instability and the acceleration of the low-carbon transition, we must seize this moment to create new growth opportunities through bold innovations in our business portfolio.” He added, “By expanding our business domain from steel and materials into resources, we will lead the way in strengthening national industrial security and supply chains.” He also presented concrete targets of achieving consolidated revenue of KRW 187 trillion and operating profit of KRW 13.1 trillion by 2035.

Strategic resources, led by lithium, received the most attention. Investor interest was highly concentrated as the lithium business demonstrated tangible results and its growth potential became evident.

POSCO Group unveiled a blueprint to establish an annual lithium production capacity of 173,000 tons by 2033, positioning itself as a Global Top 5 lithium company, while targeting operating profit of more than KRW 1.8 trillion from the lithium business by 2035..

Specifically, in the brine lithium business, POSCO Argentina turned profitable last March and recently secured approval under the Argentine government’s Incentive Regime for Large Investments (RIGI), which is expected to further strengthen its profitability. With the goal of achieving an annual brine lithium production capacity of 100,000 tons by 2033, the company will also accelerate Phase 3 and Phase 4 investments.

In the ore lithium business, a joint venture agreement with Australia’s Mineral Resources Limited has laid the foundation for expanding the refining business, securing more than 187,000 tons of lithium concentrate annually. This is also expected to generate stable annual revenue of approximately KRW 200 billion.

POSCO Group also plans to foster rare earths, key minerals for the electric vehicle and robotics industries, as well as rare and specialty gases essential for advanced industries, as strategic resources. These businesses will serve as new growth engines while helping stabilize supply chains for the nation’s future industries. In the steel business, representing its Industrial Resources segment, the Group will accelerate overseas growth investments to overcome stagnant domestic demand. By 2031, it plans to expand production capacity to 10 million tons in high-growth, high-profitability markets such as India, the United States, and Indonesia. Profits generated from these investments will be reinvested in Korea’s low-carbon transition, creating a virtuous cycle.

The energy resources business, now established as one of the Group’s core businesses, will focus on securing both profitability and sustainability. In LNG, POSCO Group will steadily execute expansion strategies across the value chain while expanding trading volumes in response to the recent increase in global cargo movements. In renewable energy, the Group will actively enter Korea’s offshore wind market and overseas solar power markets, contributing to national energy security.

In the new business sector, POSCO Group will promote the commercialization of Physical AI for process industries by leveraging its extensive on-site data and expertise in facility automation and intelligent operations accumulated through its steel business.

To accelerate the execution of this business portfolio transformation, POSCO Group plans to invest KRW 16.7 trillion in future growth initiatives over the next three years (2026–2028).

Meanwhile, POSCO HOLDINGS plans to optimize its ownership stakes in listed subsidiaries to around 50% in order to address the persistent holding company discount in the market. The capital secured through this initiative will be invested primarily in strategic resource projects directly managed by POSCO HOLDINGS to support the Group’s future growth. In addition, an amount equivalent to 10% of the proceeds from these transactions will be used for share buybacks and cancellations to maximize shareholder value.

Following the event in Korea, POSCO Group will continue to enhance corporate value and strengthen investor communication by hosting consecutive CEO Investor Days in Singapore on July 6 and Hong Kong on July 8.

▲ Chang In-Hwa, CEO of POSCO HOLDINGS, personally presents the Group’s business portfolio strategy at the ‘CEO Investor Day’ held on July 2.

▲ Chang In-Hwa, CEO of POSCO HOLDINGS, personally presents the Group’s business portfolio strategy at the ‘CEO Investor Day’ held on July 2.

▲ Chang In-Hwa, CEO of POSCO HOLDINGS, personally presents the Group’s business portfolio strategy at the ‘CEO Investor Day’ held on July 2.

Exciting news has recently arrived. POSCO has signed a Joint Venture Agreement (JVA) with JSW Steel, India’s leading steelmaker, to construct an integrated steel mill. Grounded in a robust partnership, this collaboration aims to target high-profit markets in India and further strengthen the global steel supply chain. How did POSCO and JSW Steel come to join hands? Here is the behind-the-scenes story of this monumental partnership.

POSCO Signs Joint Venture Agreement with India’s Leading Steelmaker, JSW Steel

▲ POSCO signed a Joint Venture Agreement with JSW Steel, India’s No. 1 steelmaker, on the 20th to build an integrated steel mill. (From right) Chang In Hwa, CEO of POSCO HOLDINGS; Lee Hee-guen, President of POSCO; Jayant Acharya, CEO of JSW Steel; and Sajjan Jindal, Chairman of JSW Group.

POSCO has officially embarked on constructing an integrated steel mill in India—a high-growth market with a population of 1.46 billion—by signing a Joint Venture Agreement (JVA)* with JSW Steel, the nation’s top steelmaker. The joint venture will be established on an equal partnership basis, with both companies holding a 50% stake each.

The new blast furnace-based integrated steel mill** will feature a comprehensive production system covering both upstream and downstream processes—including ironmaking, steelmaking, hot rolling, and cold rolling/galvanizing—capable of producing high-value-added premium steel. With an annual crude steel capacity of 6 million tons, the plant will be located in the state of Odisha,
securing a site adjacent to iron ore mines with excellent logistics, power, and infrastructure. Construction is projected to take 48 months from groundbreaking, with completion targeted for 2031.

* Joint Venture Agreement (JVA): A form of direct investment where a company partners with local capital to jointly operate and manage a business.
* Integrated Steel Mill: A steel plant equipped with all production stages, including ironmaking (producing molten iron), steelmaking (removing impurities), and rolling (manufacturing finished steel products).

A Perfect Match: How POSCO and JSW Group Share a Common DNA

In India, JSW Group enjoys a level of public recognition and influence comparable to POSCO in Korea, operating across a diverse range of business sectors. Just as POSCO runs professional football clubs like the Pohang Steelers and Jeonnam Dragons, JSW Group boasts immense financial power and cultural influence, even owning the Delhi Capitals, a team in India’s highly popular professional cricket league.

Notably, a special bond forged during a time of crisis connects the two companies. In 2022, Typhoon Hinnamnor caused severe flooding at Pohang Works, submerging key facilities. At that critical juncture, JSW Group generously offered POSCO a set of equipment they had ordered for their own hot rolling mill. This noble gesture significantly expedited the restoration of Pohang’s No. 2 Hot Rolling Mill, serving as a cornerstone for deep mutual trust between the two groups.

▲ (From left) POSCO Founder Park Tae-joon, JSW Group Founder O.P. Jindal (Photo credit: POSCO Group Newsroom DB, Wikimedia)

Beyond a mere business partnership, POSCO and JSW Group share deep-rooted commonalities in their founding spirits and management philosophies. JSW Group’s founder, Om Prakash Jindal (O.P. Jindal), dedicated his life to India’s industrialization. This closely mirrors the philosophy of Jecheol-boguk (제철보국, “Patriotism through Steelmaking”) championed by POSCO’s late founder and Honorary Chairman, Park Tae-joon, which emphasizes serving the nation by producing high-quality steel. O.P. Jindal’s famous vision, “Where others saw walls, he saw doors,” strongly resonates with POSCO’s indomitable “Woo-hyang-woo” (Right-turn) spirit*, which overcame seemingly insurmountable obstacles through sheer determination.

* “Woo-hyang-woo” (Right-turn) Spirit: An indomitable spirit of challenge demonstrated by Honorary Chairman Park Tae-joon during the construction of Pohang Works. He motivated his team by saying, “If we fail to build this steelworks, which is funded by claims-settlement funds from Japan, we must all turn right (‘woo-hyang-woo’) and drown ourselves in the waters of Yeongil Bay,” burning all bridges to ensure success.

Sajjan Jindal, the current Chairman of JSW Group, was deeply inspired during his past visits to POSCO’s Pohang Works and Gwangyang Works, harboring a dream to “build a world-class steelworks like this in India.” In fact, JSW’s flagship Vijayanagar Steelworks was constructed with a layout and neighboring residential complexes remarkably similar to those of POSCO’s works.
Through years of accumulated trust and mutual respect, POSCO and JSW Group have finally joined hands as true partners to pioneer the future of the Indian steel market.

Why India? A High-Growth Market Driven by a Young Population

Why did POSCO choose the Indian market? While there are various reasons—such as a landmass 33 times larger than South Korea and a population exceeding 1.4 billion—the primary driver is the projected surge in steel demand. Growing at a rapid pace of nearly 6% to 7% annually, India is currently recognized as the fastest-growing major economy in the world.

Having surpassed China in population two years ago, India boasts a massive market scale. Notably, the median age of India’s population is exceptionally young at 28. This youthful demographic is a key driver that injects vitality into the consumer market and heightens its future growth potential.

The rising purchasing power of India’s younger generation is driving development across various industries. The automotive sector, in particular, is expanding rapidly. Currently ranking fourth globally in vehicle production, India’s automotive industry is growing so fast that it is expected to climb to third place in the near future. Additionally, the home appliance market—where Korean giants like Samsung and LG have a strong presence—is seeing increased demand due to rising income levels. In the construction sector, active development of new smart cities is also driving a steady increase in steel consumption.

Specifically, India’s steel demand, which stood at 90 million tons in 2015, has surged to 150 million tons in 2024, and is projected to reach 260 million tons by 2035. Today, India stands as the world’s largest steel market, second only to China.

Supporting this explosive demand is India’s abundance of natural resources. India ranks seventh globally in iron ore reserves (approximately 35 billion tons) and possesses rich reserves of coking coal, offering a significant advantage in raw material procurement. This resource wealth serves as a powerful springboard for India to achieve complete self-sufficiency in the steel industry and sustain long-term growth.

To Go Far, Go Together: Why POSCO and JSW Steel Joined Forces

Why did POSCO choose to enter India through a Joint Venture (JV)? Since 2004, POSCO had explored entering India’s upstream steelmaking sector on four separate occasions. However, these attempts faced hurdles, such as finding the right partner and securing land. The Indian market proved highly challenging for foreign enterprises to navigate independently. Drawing from these experiences, POSCO concluded that partnering with a strong local player was the most viable path forward.

In this regard, JSW Steel, India’s top steelmaker, was the perfect partner. JSW Steel has demonstrated remarkable growth in a short span, scaling its crude steel production from 2.2 million tons in 2005 to over 30 million tons today.

The foundation of any joint venture is trust. Reflecting this, the joint venture is structured as an equal partnership with a 50:50 shareholding split. This structure embodies a shared commitment to building the world’s finest steel mill by combining POSCO’s world-class technology with JSW Steel’s market leadership and local execution capabilities.

Amid rising global protectionism, the Indian government has also tightened measures to protect its domestic market. To safeguard its local steel industry, India has strengthened regulations on domestic production and mandated standard certifications for imported steel. Under these circumstances, the decision to form a joint venture with JSW Steel represents a proactive, strategic move to successfully navigate and establish a strong foothold in the Indian market.

There is an African proverb that says, “If you want to go fast, go alone; if you want to go far, go together.” In line with this wisdom, POSCO plans to combine its innovative steelmaking technology with JSW Group’s formidable local competitiveness, paving the way to make substantial contributions to the industrial development and economic growth of both nations.

Participating entities sign a multilateral MOU to collaborate across the entire value chain, from advanced material development to real-vehicle drive motor validation

POHANG, South Korea – June 11, 2026 – POSCO announced today that it has launched a major collaborative research initiative with domestic automakers, auto parts manufacturers, and research institutes to develop next-generation, high-efficiency electrical steel sheets designed to maximize the energy efficiency of electric vehicles (EVs).

The kickoff meeting for the national R&D project, titled “Development of 6.5% Silicon-content Wide Electrical Steel Sheet and EV Efficiency-Enhancing Core and Drive Motor Manufacturing Technologies,” was held on June 11 at the Research Institute of Industrial Science & Technology (RIST) in Pohang, marking the official commencement of this groundbreaking technological development.

POSCO is leading the project as the principal R&D institution. A total of ten organizations from the industry, academia, and research sectors are participating as joint R&D partners: Hyundai Motor Company, SL Corporation, Polepair Electric, RIST, the Korea Institute of Industrial Technology (KITECH), the Korea Automotive Technology Institute (KATECH), the University of Ulsan, Pukyong National University, and the Korea Metal Materials Research Association (KOMERA).

The primary objective of this national project—supported by the Ministry of Trade, Industry and Energy (MOTIE) and managed by the Korea Evaluation Institute of Industrial Technology (KEIT)—is to secure manufacturing technologies for “6.5% Silicon-content Wide Electrical Steel Sheets,” a key material for high-efficiency motors, and to validate its performance in actual EV drive motors to verify its impact on improving EV efficiency.

Electrical steel sheets are critical materials for electric motors. As the silicon (Si) content increases, the material reduces “iron loss” (power loss occurring during high-speed rotation), thereby significantly enhancing motor efficiency. However, higher silicon content makes the steel extremely brittle, making it exceptionally difficult to manufacture and process into thin, wide sheets. Standardizing the mass-production process for wide sheets of this high-silicon steel is a major technical hurdle that global steelmakers are fiercely competing to overcome.

Following the kickoff meeting, the participating organizations signed a multilateral Memorandum of Understanding (MOU). Under this agreement, the consortium will establish an integrated research and development system that spans the entire value chain: from raw material development and core fabrication to drive motor manufacturing and real-vehicle efficiency validation. This comprehensive approach ensures that the research goes beyond simple material development to verify the practical applicability of the new steel in actual EV drive motors.

“This collaboration represents a pivotal turning point where the steel and future mobility industries join forces to usher in the era of electrification,” said Cho Myung-jong, Head of Future Steel R&D Center at POSCO. “We will concentrate our capabilities on developing high-value-added, advanced materials and component technologies that enhance energy efficiency, while maximizing the synergy among industry, academia, and research institutes.”

Through this project, POSCO aims to strengthen the competitiveness of the domestic steel and automotive value chains, securing a leading position in the rapidly growing global EV market.

▲ POSCO, along with representatives from Hyundai Motor Company and other participating organizations of the 10-member industry-academic-research consortium, pose for a commemorative photo at the kickoff meeting for the joint development of next-generation electrical steel technology, held at the Research Institute of Industrial Science & Technology (RIST) in Pohang on June 11.

Recently, POSCO proved its unrivaled steel material technology by becoming the first in Korea to obtain Korean Register (KR) certification for its new naval materials: high-ductility steel for naval vessels and armor steel for naval vessels. The application of these new materials is expected to drastically improve the performance of the Republic of Korea (ROK) Navy’s next-generation vessels. How were these steel plates, which withstand extreme water pressure and strong external impacts, born? We sit down with Lee Jae-ik and Lee Jin-woo, Principal Researchers at POSCO’s Steel Solution Research Group, to take a closer look at POSCO’s core competitiveness and future vision leading K-marine defense materials.

Lee Jae-ik: Hello. I research “application technology” to help our customers perfectly implement thin yet strong “high-strength steel” into their products. Recently, as reducing the weight of structural frames for carbon reduction has become a major topic, the demand for high-strength steel has increased significantly. However, as steel becomes stronger, welding becomes more difficult, and even after successful welding, the fatigue life of the joints often fails to match the strength of the steel itself. I solve this exact problem. My role is to dramatically extend the fatigue life of high-strength steel welded joints, providing optimal solutions so that customers can safely use lighter and stronger steel for a long time.

Lee Jin-woo: Nice to meet you. I am Lee Jin-woo, researching customized customer solutions at POSCO’s Steel Solution Research Group. Our group’s role does not end with simply making good steel. We provide a comprehensive “user manual” containing the optimal technology and guidelines so that the material can perform at 100% capacity at the customer’s site.

Currently, my main areas of focus are twofold. First is next-generation material solutions for land-based weapon systems and special vessels (surface combatants) that lead K-defense. Second is the heavy equipment and construction machinery sector. In particular, by applying the “extreme environment response technology” and “structural optimization know-how” accumulated in the defense sector to construction equipment, we create synergy to maximize the durability and efficiency of the equipment when our steel is applied. In short, my role can be described as a “technological bridge” that transforms raw materials into core components for high-tech industries.

▲ Conceptual rendering of a next-generation naval vessel applying new defense materials.

Lee Jin-woo: This KR certification is a decisive moment showing that the role of naval materials has evolved from simple “structural materials” to “core functional materials” that determine combat capability. It also demonstrates that Korea’s naval shipbuilding technology has entered a new dimension through material innovation. In modern warfare, where advanced weapons are becoming more sophisticated, the evolution of the hull that protects them is a necessity, not an option. POSCO’s new materials have secured both defensibility and mobility. By increasing elongation to 35% and impact absorption capacity by over 50%, we secured strong survivability, while reducing hull thickness by 30% to dramatically improve mobility and fuel efficiency. Our materials are completing the super-gap of K-defense as core functional materials supporting weapon systems. I am confident that this will serve as a solid foundation for POSCO to leap forward as a key partner in the global defense export market, going beyond being a “steel shield” for Korea’s next-generation vessels.

Lee Jin-woo: POSCO’s new naval materials are evolving in a direction to develop stronger and tougher steel materials so that submarines can operate safely deep under the sea. First, high-ductility steel, which applies technology that remains intact even when colliding with glaciers, stretches much better than conventional steel (35% elongation) while its capacity to absorb impact has become over 50% stronger. In addition, high-performance armor steel, which transplants solid ballistic technology from land-based weapon systems to the marine sector, maintains its strength while reducing the thickness of the steel plate by approximately 30% compared to existing ones. Reducing the thickness of the steel plate enables lightweighting of the hull, thereby improving both mobility and fuel efficiency. This advancement in material technology symbolizes a paradigm shift from structural materials to core functional materials, and will be POSCO’s core competitiveness to contribute to expanding K-defense exports and entering the global naval vessel market in the future.

Lee Jae-ik: Since they are used at sea, both general shipbuilding heavy plates and special steel for naval vessels require high reliability. However, the core purpose of the materials is different. General shipbuilding heavy plates focus on optimizing “economic efficiency and stability” according to the waves or temperatures of designated routes. On the other hand, marine defense materials, such as surface combatants and submarines, must perform operations in any ocean worldwide and survive extreme combat situations like shell hits or explosions. Therefore, they require the most stringent standards in existence. While general shipbuilding mainly uses “high-efficiency steel” with good work efficiency such as welding, marine defense uses “premium special steel” containing a large amount of special alloys to boast the highest level of strength and toughness. This is the biggest difference.

Lee Jae-ik: The pressure hull, which is the framework of a submarine, must maintain its original shape firmly without fatigue or cracking to protect the crew and sensitive equipment from intense water pressure, explosions, and impacts. To achieve this, steel must possess a combination of strength to withstand water pressure (yield strength), flexibility without breaking (elongation), impact absorption capacity (toughness), and ease of bending without heat (cold formability). Perfect welding that connects joints as strongly as the original steel plate and technology to eliminate post-welding stress are also essential.

For example, Japan’s Taigei-class submarines apply ultra-high-strength steel (NS110, yield strength of approx. 980 MPa) that withstands depths of 500 meters. The core technology here is overcoming the problem of reduced flexibility as steel becomes harder. On the other hand, Germany’s Type 212/214 submarines used “non-magnetic steel” that does not stick to magnets to avoid detection based on the enemy’s magnetic field, but because of the limitations in the material’s strength, their diving depth is limited to about 250 meters. Ultimately, for a submarine to survive intact in extreme crisis situations such as undersea collisions, torpedo evasion, or rapid surfacing, advanced steel materials that balance hardness and flexibility, along with reliable welding technology, must be supported.

Lee Jae-ik: To prove the reliability of submarine materials, we must go through three stages of evaluation. First, we quantify the basic alloy design and physical properties using fingernail-sized “micro-specimens.” Second, once the steel is produced, we manufacture “full-thickness specimens” to directly test the limits of strength and toughness of the base metal and welded joints. Finally, we conduct “structural mock-up testing,” assembling it similarly to an actual submarine shape. In this stage, we final-check residual stress generated during actual processing, fatigue life, and deformation during explosions. As a result, to develop a single steel material, hundreds of similar items are repeatedly verified double and triple, and only after passing this harsh process can we finally take responsibility for the submarine’s survivability.

Lee Jae-ik: That is the most difficult part of development. This is because a vicious cycle occurs where increasing the strength of the steel plate makes it weak against impact, and compensating for this warps the welding. POSCO is breaking through this difficult limitation with two innovations. We are researching to secure both strength and toughness simultaneously through advanced Thermo-Mechanical Control Process (TMCP) technology and fine microstructure control technology. Recently, technology that combines AI to find the optimal alloy ratio that captures both strength and toughness (flexibility) has been established. In addition, by package-developing the material and welding consumables as a single set from the beginning, we eliminated the trial and error of having to return to the starting point due to mismatching later, thereby dramatically shortening the overall development period.

Lee Jae-ik: Due to national security and diplomatic sensitivity, all technologies from design to operation in marine defense steel development are managed under strict security. Technology development is mainly carried out as national projects led by the Defense Acquisition Program Administration (DAPA), and the achievements belong to national assets. When a customer requests the development of general-purpose technology, development proceeds in the form of a “Joint Development Project (JDP).”

The most representative case is the “development of fatigue design technology for high-strength steel welded joints” project conducted in 2019 with Hanwha Ocean (formerly Daewoo Shipbuilding & Marine Engineering) and the Korean Register (KR). The design was initially carried out by applying design technology transferred from Germany’s HDW, but we eventually pursued localization. Since then, the three organizations have cooperated to secure localized design technology. In the future, when localized welding materials and welding solutions are applied, it is expected that a self-production foundation for high-performance large submarines will be established.

Lee Jin-woo: POSCO develops next-generation naval materials by establishing an “Early Supplier Involvement (ESI) framework,” collaborating closely from the initial design stage with the special ship business divisions of the two major heavy industries, which are key communication channels for defense agencies. The KR certification of the newly developed materials was also achieved through collaboration with the Special Ship Business Division of HD Hyundai Heavy Industries and communication with defense agencies. Defense steel has the difficult challenge of simultaneously satisfying complex conflicting conditions such as protective performance, weldability, and on-site assembly alignment, beyond simple high strength. Therefore, during the collaboration process, we closely exchange opinions on manufacturing technology, component feasibility, special protective performance verification methods, and final specification (Spec-in).

This field-oriented, close technical exchange (Spec-in) allowed us to reflect the “reality of the field” early on, which is easy to miss in the laboratory, thereby compensating for the limitations of the laboratory unit early. Consequently, it is becoming a core competitiveness that overcomes the structural limitations unique to defense R&D, which usually takes more than 5 to 10 years, and enables actual naval application within a short period. POSCO proactively shared the operational concepts of weapon systems, coordinated required performance, and led the “simultaneous evolution of material and structural design.” This is a symbolic case showing why the current collaboration system is so important.

Lee Jin-woo: POSCO has established itself as a core foundation of the domestic shipbuilding and naval industries by proving global top-tier quality and mass production capability in the field of heavy plates for hull structures. In the field of next-generation special steel, we are continuing strategic challenges to surpass advanced military nations such as the US and Germany, which still lead in some areas. To this end, rather than simply chasing technology, we are pursuing a strategy to build “POSCO’s unique independent development model” where “material development, manufacturing technology, and vessel design” move like a single organic body by establishing a “close joint research system” with national defense research institutes and special ship design departments of shipyards. We believe that this value chain-integrated collaborative ecosystem will be the most powerful core competitiveness for POSCO to leap forward as a first mover leading the paradigm of next-generation naval material technology in the future.

▲ Conceptual rendering of a submarine. (Image source: my posco)

Lee Jae-ik: Analyzing the aspects of modern warfare, such as the recent war in Ukraine, the paradigm of future submarine steel technology can be summarized as “expansion of unmanned systems” and “extreme stealth” such as stealth performance. To apply to unmanned drones that will disperse the risks of manned submarines, a higher level of high-strength steel is essential, and neighboring countries like Japan are also secretly continuing to improve material performance. In response to this, Korea must also move toward developing “ultra-high-strength steel” that withstands deeper seas, larger hulls to increase weapon payload, and “high-strength non-magnetic steel” that fundamentally blocks the enemy’s magnetic detection in shallow waters. Ultimately, we believe that the high-functional special steel equivalent to or surpassing that of neighboring countries, and the advancement of welding and processing technologies to perfectly implement it, are the clear future directions we must preoccupy.

Lee Jae-ik: Ultra-high-strength steel, which completes the “stealthiness” that is the life of a submarine, has doubled in strength compared to 50 years ago, turning what was once a “dream material” into reality. The important point is that these cutting-edge defense technologies will expand to civilian industries in the future, such as lightweighting ships and reducing carbon emissions, serving as a solid foundation to lead the upcoming low-carbon, high-strength steel era. I will make sure POSCO plays a leading role in that.

Lee Jin-woo: I believe that material innovation has true value when applied in the field, rather than remaining as an achievement in the laboratory. POSCO has turned that value into reality through close collaboration with partners such as shipyards and research institutes, as well as research, production, quality, and marketing. Going forward, we will continue to enhance the competitiveness of next-generation naval materials based on accumulated technology and execution capability. I want to responsibly contribute to laying the foundation for Korea’s defense material technology and securing global competitiveness.

POSCO Investment makes its first overseas CVC investment in the low-carbon steel sector

On April 28, POSCO announced the signing of a joint development agreement with Electra of the United States to develop low-carbon ironmaking technology.

Founded in Colorado in 2020, Electra possesses proprietary technology that produces solid iron by removing impurities from iron ore through electrochemical reactions. The company is currently constructing a pilot plant with an annual capacity of 500 tons, aiming for operation within this year.

Through this agreement, the two companies plan to combine POSCO’s direct reduction technology with Electra’s low-carbon ironmaking system to jointly verify technical and economic feasibility for commercial production.

“POSCO brings deep experience in steelmaking, production technology and process development,” said Sandeep Nijhawan, Electra’s co‑founder and chief executive officer. “We’re building for the long term, and this partnership helps us scale thoughtfully as we bring clean iron to more customers.”

Eom Kyeong-geun, Head of POSCO Technical Research Laboratories, explained, “This partnership through the joint development agreement aims for strategic synergy between POSCO’s proprietary direct reduction and engineering technologies and Electra’s innovative electrochemical process.”

On the same day, POSCO Investment also announced a CVC investment agreement with Electra.

Kim Keun-hwan, President of POSCO Investment, stated, “This investment marks our first overseas strategic CVC investment in the decarbonized steel sector. It holds special significance as a climate-tech investment in preparation for the era of decarbonization.”

▲ POSCO and POSCO Investment sign a joint development and investment agreement with Electra to collaborate on technical validation for commercial production. (From left) Eom Kyeong-geun, Head of POSCO Technical Research Laboratories; Sandeep Nijhawan, CEO of Electra; and Kim Keun-hwan, President of POSCO Investment.

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.

Enters market alongside domestic manufacturers, boosting competitiveness across sectors

POSCO is supplying HIC-certified energy steel to Saudi Aramco’s Fadhili Gas Plant Expansion Project.

The Fadhili expansion project is a large-scale energy infrastructure initiative by Aramco, the world’s largest oil company, aimed at increasing the gas processing capacity of the existing plant by approximately 1.6 times.

The HIC-resistant steel provided by POSCO is designed to withstand hydrogen-induced cracking and is used in harsh environments for energy applications such as steel pipes and pressure vessel materials in the oil and gas sector.

Energy steel is typically categorized by application into two segments: plant facilities used for energy extraction and production, and pipelines for transportation. This marks the first time that HIC-resistant steel has been supplied for use in the plant segment.

In particular, the HIC-resistant steel required by Aramco for plant applications must pass HIC testing and quality certification procedures that go beyond international standards (NACE TM0284). Until now, European steelmakers had exclusively supplied this material. Currently, only nine steel manufacturers, including POSCO, have obtained certification from Aramco. With this supply, POSCO is set to expand both its technological presence and market influence in the high-value-added energy steel sector.

In addition, POSCO’s HIC-resistant steel has been processed into finished products by domestic manufacturers of pipes, pressure vessels, and fittings, thereby enhancing the competitiveness of South Korea’s plant industry. Initially, European companies were considered for the pipe and pressure vessel fabrication in the early stages of the Fadhili project. However, with POSCO supplying the steel, the fabrication work was also shifted to domestic firms. This demonstrates how the technological competitiveness of downstream industries has led to new supply opportunities for upstream sectors within Korea. Currently, pipes are being manufactured by Hyundai Steel Pipe and Seah Steel, pressure vessels by Bumhan Mecatec, and fittings by Taekwang.

Amid ongoing uncertainties in the global trade environment, such as protectionism and high tariff policies, POSCO is securing a competitive edge by developing new demand and expanding its market through high-value-added products. Furthermore, by working closely with a wide range of partners, POSCO is actively driving the growth and competitiveness of South Korea’s manufacturing industry.

▲ A view of the ongoing Fadhili Project in Saudi Arabia.

Joint development of steel and battery material utilization technologies and rare earth refining technologies with local raw material companies and research institutions

Chairman In-hwa Chang: “Combining Australia’s resources with POSCO’s technology to create added value … Will become a strategic hub for resource processing technology and critical mineral acquisition”

POSCO Holdings has opened the Australia Critical Minerals R&D Lab in Perth, Western Australia, and is embarking on securing ultra-gaps in technological competitiveness in steel, battery material, raw materials, and rare earth sectors. This marks the first time a Korean company has established a resource research institute on-site where raw materials are located.

The opening ceremony held on May 30 in Perth, Western Australia, was attended by POSCO Group Chairman In-hwa Chang, POSCO N.EX.T Hub Director Ki-soo Kim, representatives from Australian raw material companies including Hancock, BHP, Rio Tinto, and PLS (formerly Pilbara Minerals), research institutions such as the Commonwealth Scientific and Industrial Research Organisation (CSIRO) and the Minerals Research Institute of Western Australia (MRIWA), and local universities including Curtin.

Chairman In-hwa Chang emphasized, “Since receiving its first iron ore supply from Australia in 1971, POSCO has been transforming into a global top materials company in steel and battery materials through solid collaboration with the Australian government and industry. The Australia Critical Minerals R&D Lab will combine Australia’s abundant resources with POSCO Group’s materials technology capabilities to add value to the Group’s core businesses and serve as a strategic hub for raw material processing technology and critical mineral acquisition.”

The POSCO Group has recognized the importance of localization strategies in steel and battery materials businesses, which have high raw material cost ratios, extending beyond economical raw material procurement to securing technological competitiveness in carbon reduction. Accordingly, it has become the first Korean company to establish a specialized research institution on-site in Australia, where raw material mines and international research institutions are located.

Chairman In-hwa Chang has emphasized the importance of cost reduction practices and technologies, particularly announcing his commitment to solving business-specific challenges through the integration of technology and business strategy across all steps from research and development to production and sales.

The Australia Critical Minerals R&D Lab will serve as a hub for the Group’s critical mineral research and development, including project execution in collaboration with local raw material companies and research institutions in the Group’s core business areas, such as economical low-carbon steel raw material utilization technology and cost reduction technology in lithium and nickel raw material sectors.

Moreover, the institute plans to conduct parallel research on rare earth supply chains and high-efficiency separation and refining technologies to explore next-generation critical mineral business opportunities and drive investment in global premier mines through local information exchange.

The POSCO Group has been cooperating with Australia in building supply chains for critical minerals, such as iron ore and lithium, since the early 1980s. It has participated in the development of Australia’s Roy Hill iron ore mine to procure steel raw materials stably and operates a joint venture for battery lithium hydroxide with PLS.

In particular, Chairman In-hwa Chang, leading the Korea-Australia Economic Cooperation Committee, is facilitating close cooperation between the two countries’ business communities and industrial development beyond traditional resource cooperation in minerals and batteries.

▲POSCO Holdings held the opening ceremony for the Australia Critical Minerals R&D Lab in Perth, Western Australia, on May 30. From left: Will Milstead, Rio Tinto CFO; John Stanning, PLS Head of Development; Professor Joe Elphick Huang, Curtin University; Ben Ellis, BHP Sustainability Executive; Miriam Stanborough, MRIWA Board Chair; Faye Duda, Honorary Consul to Australia; Chairman In-hwa Chang; Lewis Fisher, CSIRO Mineral Resources Director; Professor Marco Fiorentini, University of Western Australia; Professor Alex Nicholoski, Murdoch University; Ki-soo Kim, POSCO N.EX.T Hub Director.

In a world where global dynamics are shifting at an unprecedented pace, what key economic and industrial trends should we focus on today? Experts at the POSCO Research Institute provide in-depth insights into global industries and economic trends, specifically those affecting POSCO Group’s core businesses. Standing at the threshold of a sweeping transformation in the mobility sector, Senior Researcher Gi-Yong Jeon of the POSCO Research Institute takes a closer look at the emerging industries driven by the hyperloop technology and examines how these shifts could reshape the demand for steel.

Senior Researcher Gi-Yong Jeon, POSCO Research Institute

Around the world today, advanced technologies such as artificial intelligence (AI) are converging with sustainability initiatives and redefining the very nature of how we move. In the mobility industry, instead of a supplier-centered perspective based on uniform routes and fixed schedules, a demand-driven model focused on personalized transportation that maximizes mobility is increasingly emphasized. In addition, there are sweeping transformations in the mobility industry in the search for solutions regarding societal challenges such as urban centralization, an aging society, and environmental pollution in connection with the transportation sector. In response, we examine the emerging industrial trends represented by the hyperloop, and analyze how these changes are expected to affect the demand for steel.

I Spotlight on the Future of High-Speed Vacuum Trains: Hyperloop

▲A conceptual diagram of the internal structure of a commercialized Hyperloop. The train runs inside the tube at 1,000 km/h. (Image source: Eurotube Foundation Site(https://eurotube.org))

Elon Musk, CEO of Tesla, recently brought the hyperloop back into the spotlight by mentioning a transatlantic tunnel project on X (formerly Twitter). He suggested that with a $20 billion investment, it would be possible to build an underwater link connecting New York and London. If an underwater hyperloop transportation system is built, passengers could travel from New York to London in under 60 minutes.

The idea of a transatlantic tunnel connecting the United States and Europe has been floated before, but has never materialized due to severe technical limitations and astronomical costs*. With Musk’s renewed proposal, attention has once again turned toward hyperloop technology, which promises speeds exceeding 1,000 kilometers per hour.
*It is estimated that constructing the tunnel using the same method as the Channel Tunnel, which connects the United Kingdom and France, would require an investment equivalent to the size of the U.S. GDP.

“Hyperloop” is a compound of “hyper” from “hypersonic,” meaning faster than the speed of sound, and “loop,” meaning a circulation ring. It refers to a next-generation high-speed transportation system where capsule-shaped vehicles travel inside a vacuum tube. The hyperloop consists of fully sealed vacuum tubes, passenger capsules, and tracks responsible for propulsion and levitation, and the capsule can travel at speeds over 1,000 km/h in the tube.

To minimize air resistance* at these high speeds, the internal pressure of the tube must be reduced to about 1/1,000th of atmospheric pressure (a near-vacuum). In addition, linear motor propulsion devices must be used for the capsules to levitate by magnetic levitation systems. There are two types of linear motor propulsion: linear induction motor (LIM) or linear synchronous motor (LSM). The LIM system is relatively easy to install and cost-effective for infrastructure, and is mainly used in medium-to-low speed maglev trains such as Linimo in Japan. By contrast, the infrastructure of the LSM system is more expensive but it has a stable power supply even at high speeds, making it suitable for ultra-high-speed trains such as EU HARDT and Japan’s Chuo Shinkansen.

*Air resistance at 200 km/h is four times greater than at 100 km/h, so the tube’s internal pressure must be about 1/1,000th of atmospheric pressure.

For the hyperloop to become a practical mode of transportation, it must first secure both safety and economic feasibility. Because the system must maintain a near-vacuum environment while traveling at high speeds, the stability of the train is critical. The tubes that form the hyperloop tracks must withstand not only their own weight, but also the weight of the capsules, the shocks from high-speed travel, thermal expansion, and atmospheric pressure.

Moreover, as the gap between the capsule and the tube narrows and the capsule approaches the speed of sound, a phenomenon known as the Kantrowitz limit, where airflow inside the tube becomes blocked, may occur. To overcome this issue, it requires securing sufficient clearance by enlarging the diameter of the tube. This demands the development and supply of materials that not only prevent deformation and damage at connection points but also offer excellent airtightness, workability, and economic efficiency. Examples of such materials include PosLoop355 developed by POSCO, and ASTM A1018 Grade 36 steel by AK Steel.

▲A 2.5m diameter hyperloop tube being manufactured by SeAH Steel using POSCO Special Steel PosLoop355.

In underground tunnel sections, ultra-high-density concrete tubes are being considered as an alternative to steel pipes, and ultra-high-performance concrete tubes, such as Hypercrete, are already under development.

I How Close Is Hyperloop to Commercialization?

Considering the demonstration testing plans of hyperloop manufacturers and the conditions needed to secure economic feasibility, the commercialization of Hyperloop is expected to occur after 2030. Countries around the world are building and testing pilot tracks to develop hyperloop technology. The achievements of leading companies are as follows:

[Hardt Hyperloop]
Hardt Hyperloop, a Netherlands-based hyperloop development company, has established the European Hyperloop Center (in Veendam, Groningen Province, Netherlands) and is actively conducting technology development and testing. It plans to build commercial hyperloop lines in the Netherlands and Canada after 2030.

▲A view of the European Hyperloop Center test line using POSCO steel. The 420m-long hyperloop test line, which is scheduled to be completed in March 2024, includes the world’s first Y-shaped switch that allows for changing tracks while in motion. (Image source: Hardt)

POSCO has collaborated with its Steel Research Laboratories, Steel Solutions Research Laboratories, and Marketing Division to participate in the entire process from design to production of the European Hyperloop Center (EHC). It supplied 352 tons of PosLoop355 steel, a material that is 27% lighter than Hardt’s original design. This material is the world’s first specialized steel for hyperloop tubes and features vibration-damping performance 1.7 times higher than that of conventional steel and superior seismic resistance. Additionally, for high-speed route-switching tests on the pilot track, POSCO also supplied 123 tons of high-grade heavy plates.

▲Inside the hyperloop where the European Hyperloop Center is developing technology. (Image Source : Hardt Hyperloop Linkedin)

Moreover, POSCO International invested in Hardt Hyperloop in 2022 as part of its global new business development strategy, acquiring a 6.1% equity stake and securing supply rights for steel materials. In 2023, it further strengthened its relationship by signing a strategic cooperation agreement to collaborate on projects in Europe and the Middle East. POSCO and POSCO International plan to continue promoting POSCO’s steel materials for use in other global hyperloop pilot track projects.

[The Boring Company]

The Boring Company, a U.S.-based transportation infrastructure firm founded by Elon Musk, specializes in the design, construction, and operation of underground tunnels. It is conducting technology verification by building test tracks, designing vacuum tubes, and developing capsule prototypes for hyperloop systems.

[CASIC, China Aerospace Science and industry Corporation]

China Aerospace Science and Industry Corporation (CASIC), a state-owned enterprise, is currently developing a hyperloop system called “T-Flight.” In November 2023, the company completed a 2-kilometer hyperloop test track in Datong, Shanxi Province. However, since trial runs have been conducted only over a relatively short section, additional testing under a variety of conditions remains necessary. During recent trials, the T-Flight system achieved a top speed of 623 kilometers per hour, and CASIC plans to further increase this to 1,000 kilometers per hour in future tests.

In South Korea, there were plans to build a hypertube* demonstration complex in the Saemangeum region and to secure core technologies for its development. However, the project failed to pass the preliminary feasibility assessment conducted in 2023. Momentum for the initiative was reignited in June 2024, when the South Korean government abolished preliminary feasibility evaluations for national research and development projects. Following this decision, the Ministry of Land, Infrastructure, and Transport officially announced on June 9 the launch of research and development efforts for key hypertube technologies, in particular, magnetic levitation and propulsion systems. The government plans to invest a total of KRW 12.7 billion (approximately USD 9.5 million) over the next three years until 2027 to develop four critical technologies: dedicated hypertube tracks, superconducting magnet systems, driving control technologies, and the design and manufacturing of capsule bodies.

*In South Korea, the domestic version of the hyperloop system is referred to as “hypertube.”

The global hyperloop technology market is experiencing rapid growth. If major countries such as those in Europe replace intercity rail networks with hyperloop systems, the market is projected to reach approximately USD 77 billion by 2034. However, several challenges remain, including the need to develop technologies capable of accommodating the numerous curves found in existing railway routes, as well as the issue of high construction costs. As a result, it is expected that countries such as those in Europe will adopt hyperloop technologies more as a complementary solution rather than as a complete replacement for existing rail infrastructure.

I Steel Industry Sees New Opportunities in Hyperloop, the Next-Generation High-Speed Transport

If large-scale infrastructure projects connecting cities with hyperloop systems move forward, it is expected to have a positive impact on the demand for steel. This is because a wide range of infrastructure elements, such as vacuum tubes, intersections, foundational facilities, magnetic levitation systems, and vacuum maintenance systems, will require materials such as steel pipes, structural steel, and stainless steel (STS). The total distance between major cities in Europe is estimated to be around 10,000 kilometers. If these routes were replaced with hyperloop systems, the demand for steel could exceed 20 million tons.

The hyperloop, a next-generation high-speed mode of transportation, presents a significant breakthrough opportunity for the steel industry. To capture future demand in the evolving mobility market, it will be crucial for steelmakers to build stable cooperative networks and continuously develop high-value-added, region-specific steel products tailored to the needs of hyperloop infrastructure.