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.

With the Trump administration recently easing restrictions on LNG exports and actively leveraging tariffs in trade negotiations, the entire LNG value chain—production, storage, transportation, and utilization—is gaining attention. Back in 2008, POSCO anticipated a steady increase in LNG demand as a response to tightening global environmental regulations. POSCO recognized the need for new materials to secure a competitive edge in the materials market for LNG storage and transportation. For this reason, it turned its focus to manganese alloy steel, and thus began the development of high-manganese steel. We sat down with Senior Researcher Soon-gi Lee, who is at the heart of the development, certification, and commercialization of this next-generation material.

Q. POSCO’s high-value-added steel, developed in-house, is drawing attention. What exactly is POSCO’s high-manganese steel, and what makes its manufacturing process unique?

POSCO’s high-manganese steel is a new type of steel alloyed with a high content of manganese (Mn, 22.5–25.5%). Compared to conventional materials such as stainless steel, 9% nickel steel, and Invar alloy, POSCO’s high-manganese steel offers comparable performance, but significantly better cost competitiveness. Most importantly, it retains excellent mechanical properties even at cryogenic temperatures as low as -196°C, making it ideal for LNG storage tanks and carriers.

When manganese is added to steel, introducing solid manganese directly into the molten metal can cause a drop in temperature. To prevent this, we melt the manganese before adding it, rather than inputting it in solid form. Typically, adding manganese increases wear resistance and strength, but this comes at the cost of ductility (the property of stretching easily without breaking). However, thanks to POSCO’s decades of accumulated know-how in controlled rolling and cooling techniques, we have succeeded in producing a ductile product despite the high manganese content. Production is currently taking place at our heavy plate plant, and both the material composition and manufacturing method have been bundled into a single patented package.

Q. You said POSCO melts the manganese first to avoid lowering the temperature of the molten steel. But if your competitors build similar melting facilities, won’t they be able to catch up?

Though it sounds simple, POSCO’s proprietary technology is embedded throughout the process. Manganese alloys often contain impurities, so refining during the intermediate stages is critical. Predicting the behavior of molten manganese is also one of our hidden core technologies. Our facilities for producing molten manganese and storing it in insulated furnaces will not be easy for our competitors to replicate.

Q. Is POSCO the only company that can produce high-manganese steel?

Some steelmakers produce general-purpose high-manganese steel. However, in applications requiring higher manganese content, such as the cryogenic (24%) and slurry pipe (18%) grades used in the energy industry, POSCO leads in technological capability.

Q. How does POSCO’s high-manganese steel compare with competing materials?

POSCO’s high-manganese steel meets all the requirements for LNG transport and storage, and offers several advantages over existing materials. It exhibits high strength and excellent elongation* properties.

While most steel materials used for LNG transport and storage contain a high amount of expensive nickel, nickel has been completely replaced with manganese in POSCO’s high-manganese steel. The manganese used in high-manganese steel is abundant worldwide and relatively low in cost, making the final product approximately 30% cheaper than conventional alternatives. Its high elongation makes it easy to process, and it is also highly resistant to hydrogen embrittlement. Having recently been approved for ammonia applications, it can now be used for most liquefied gases, including natural gas, ammonia, and CO₂.

*Elongation: The ratio by which a metal can stretch before breaking; it indicates ductility.

Q. What are some current applications of POSCO’s high-manganese steel?

▲POSCO International’s Gwangyang LNG Terminal tank using POSCO high-manganese steel.

Currently, it is being used in Gwangyang LNG Terminal units 5 and 6, Hanwha Ocean’s VLCCs, container ship LNG fuel tanks, and onshore LNG storage tanks. We are working toward expanding its use in LNG carriers and other applications. Beyond LNG, POSCO aims to promote high-manganese steel across various industries as a symbol of Korea’s technological strength.

Q. Could this steel eventually be used in LNG carriers, not just LNG-fueled ships? Doesn’t using thick plates reduce capacity?

POSCO manufactures high-manganese steel as thick plates. Onshore storage tanks are built with thick plates, and LNG carriers can be built using either thin membrane sheets (about 0.7–1.2 mm) or thick plates (6–40 mm). Compared to membrane systems, thick-plate LNG carriers are structurally more robust and better withstand sloshing from LNG motion, providing superior safety under various conditions. Recently, President Trump mentioned Korea’s potential involvement in the Alaska LNG project. To navigate through thick Arctic ice, LNG carriers would need to be icebreaking LNG ships. In such cases, high-manganese steel made in thick plates offers a clear advantage.

There is no reduction in capacity. Shipbuilders simply redesign the hull based on the plate thickness. The standard capacity is 174,000 m³, and designs are adjusted accordingly.

▲The 2024 IMO General Assembly in London invited Korea to present POSCO’s achievements.

Q. We read that POSCO’s high-manganese steel is setting global standards. What does that mean?

Materials for energy applications must adhere to strict international standards. For example, ships sail through international waters, so they aren’t subject to just regional or national regulations—they must comply with global standards. Since POSCO’s high-manganese steel was the first of its kind, no existing standards applied, so we had to create them ourselves. Despite continued resistance from our competitors, we succeeded in registering the material with ASTM, API, ISO, and IMO standards. These international standards are based on POSCO’s technology, meaning that other companies must follow our specifications—effectively making POSCO’s technology the global benchmark.

In particular, the International Maritime Organization (IMO), a UN-affiliated body that sets standards for shipbuilding and operation, formally requested the Korean government to present at the 2023 General Assembly when POSCO’s high-manganese steel received final approval. The IMO viewed the 10-year approval journey led by POSCO and the Korean government as a highly successful and exemplary case, and wanted to share it with member states.

Q. There seems to be a longstanding connection between Chairman In-hwa Chang and high-manganese steel.

▲(Left) Hanwha Ocean’s crude oil carrier equipped with a high-manganese steel LNG fuel tank in 2022 (Right) Hanwha Ocean’s ultra-large container ship equipped with a high-manganese steel LNG fuel tank in 2024.

Chairman In-hwa Chang has a deep understanding of both shipbuilding and steelmaking, having majored in naval architecture and marine engineering as a student and later worked as a researcher in the steel industry. This unique background has allowed him to make significant contributions to the development and broader adoption of high-manganese steel.

He played a key role in our solid track record* by ensuring the material was actually used in onshore and marine storage tanks, which laid the foundation for future sales growth. Back in 2017, when POSCO was planning to construct the No. 5 LNG terminal in Gwangyang, the initial plan was to use conventional materials. However, as executive vice president at the time, Chairman Chang personally made the decision to use POSCO’s high-manganese steel instead.

His strategy was to create a proven reference case using POSCO’s own material, thereby paving the way to enter new markets. He also believed that involving POSCO E&C for construction and POSCO International for operations would maximize group-wide synergy. He further helped open a new market for ship applications by driving the use of high-manganese steel in LNG fuel tanks for LNG-powered vessels.

Hanwha Ocean (formerly DSME) was initially hesitant to adopt the new material for LNG-powered ships, as safety assurance is critical for such large-scale vessels. During his term as POSCO CEO in 2020, Chairman Chang met directly with Hanwha Ocean’s top management and strongly advocated for the safety and reliability of the steel. As a result, in 2022, Hanwha Ocean became the first in the world to use high-manganese steel in LNG fuel tanks for a very large crude carrier (VLCC), which was followed by its application in container vessels.

* Track Record: Operational data collected after applying newly developed technologies or products under real working conditions

Q. Beyond the current market, what are the growth prospects for high-manganese steel?

Outside the LNG value chain, POSCO is leveraging the wear resistance and non-magnetic properties of high-manganese steel to explore new markets. Despite severe deformation, its non-magnetic properties do not deteriorate, which enhances stealth capabilities when applied to submarines, warships, and military tanks, thereby pushing for demand expansion as a material for the defense industry.

The trends in POSCO Group’s flagship business area are explained by experts in an easy-to-understand manner. In this third installment, we discuss the latest 3R trend in the steel industry to realize a circular economy with insights from Jong-min Lee, a senior researcher at POSCO Research Institute. We explore various topics, including the influential 3R trend in the global steel industry and POSCO’s energy-saving initiatives.

In recent times, there has been a growing social and economic push towards eco-friendly industries that conserve natural resources and minimize environmental impact. Consequently, the steel industry is striving to develop innovative and sustainable solutions to enhance by-product recovery rates and improve quality during steel production.

The 3R campaign is an environmental movement that first emerged in Wales, UK, in 2008. It started with the concept of Reduce, Reuse, and Recycle, aimed at reducing waste, reusing items, and actively using recycled products. As this concept entered industries, 3R technology in the industrial sector sometimes expanded to include new ideas such as Recover, Replace, and Rot, forming what some call the 4R framework.

For example, the chemical industry applies the concept of “Rot” to develop technologies that make plastic products more biodegradable to minimize environmental damage. The concept of “Replace” involves developing technologies to substitute hazardous or harmful substances with safer alternatives. However, it can be challenging to distinguish these new concepts from the traditional 3R, and their applicability may vary depending on the industry.

As the emphasis on the circular economy grows in the steel industry, the 3R trend is becoming increasingly prominent. In the steel industry, 3R technologies can be categorized into Reduce, Recover, and Recycle. Reduce technology focuses on reducing the amount of energy and raw materials used during steel production. This includes efficient product design, optimization of production processes, and enhancing energy efficiency. Recover technology involves reclaiming by-products or waste generated during production for reuse or other purposes. Recycle technology pertains to breaking down used products or raw materials for reuse or repurposing them for other applications.

The steel industry, being energy-intensive, focuses on developing technologies that reduce energy consumption. Specifically, various technologies are being developed around the blast furnace process, which has the highest energy consumption in steel manufacturing. A notable technology is hot oxygen injection technology, spearheaded by the U.S. Department of Energy (DOE), which is currently in the pilot stage. This technology injects hot oxygen into the blast furnace, increasing productivity by 15% compared to traditional blast furnaces and maximizing steel production per unit of energy. Blast furnace heat recuperation technology, which reduces fuel costs by using exhaust gases from the blast furnace to preheat combustion gases, and plasma blast furnace technology, which uses the plasma extensively used in the chemical and metallurgical industries to minimize metal loss, are other well-known energy-saving technologies.

Smart factory technology improves yield during steel product manufacturing, resulting in raw material and energy savings. The implementation of smart factories can lead to reduced defect rates, shorter decision-making times, reduced unnecessary inventory or equipment failures, fewer accidents, and faster abnormality response times.

POSCO’s steelmaking process uses AI to learn and adjust temperatures, components, and raw materials, raising temperature accuracy from 80% to more than 90% and reducing raw material use by around 60%.

POSCO’s continuous casting process previously required 100% surface inspection of representative materials and expanded to all materials upon defect detection to remove imperfections. After implementing smart factory technologies, KRW 600 million was saved annually by applying a surface quality prediction model that inputs quality criteria into AI to analyze and select defective materials.

In POSCO’s coating process, deep learning is used to autonomously learn and precisely control the steel grade, thickness, width, operational conditions, and target coating amount, thereby increasing coating control accuracy from 89% to more than 99%.

While new processes are being developed to achieve carbon neutrality, it will take considerable time to commercialize hydrogen reduction technology. Considering sunk costs, existing blast furnace facilities must continue to be used. Therefore, energy-saving technology development for currently used blast furnaces is expected to be active. With the advancement of AI technology, smart factory technology will be competitively adopted by steel companies and become the hottest area for technological competition.

In the steel industry, Recover technologies focus on reclaiming by-products or waste generated during production for reuse or other applications. This practice has led to a remarkable global efficiency rate of 97.3%.

Globally, the proportions of steel products, by-products, and waste generated during steel production are approximately 64.4%, 32.9%, and 2.7%, respectively. Among these, slag, a representative by-product, is used as a raw material in the cement and fertilizer industries or for road construction and asphalt. Dust contains valuable elements such as zinc and iron, which are recovered and reused.

Slag

Slag is the most significant by-product in steel production, with more than 400 million tons produced annually. Blast furnace slag, in particular, is used as a raw material for cement or fertilizers. Slag, a by-product from iron ore separation, is classified into blast furnace slag and steel slag based on its origin. Blast furnace slag is a hot molten slag generated during the production of molten iron. Rapidly cooling this slag with high-pressure water in a closed system produces granulated slag, while slow cooling in a yard forms air-cooled slag.

Granulated blast furnace slag is used as an eco-friendly alternative to limestone in cement production. Increasing the ratio of slag used in place of limestone can reduce limestone usage by approximately 45%, and the lower heat of hydration when cement reacts with water can reduce concrete cracking and enhance durability and strength. Air-cooled slag and steel slag are used as aggregates in civil engineering to curb excessive quarry development and save energy in aggregate extraction and processing.

By-product gas

By-product gases from coke ovens (COG), blast furnaces (BFG), and converters (LDG) contain methane (CH4) and carbon monoxide (CO). These gases have sufficient energy to be reused as fuel. Power plants compress by-product gases with gas compressors to produce primary power in gas turbines and secondary power in steam turbines by recovering hot exhaust gas. By-product gases are 99% recovered and reused or used for power generation.

The development of by-product recovery technologies in the steel industry has achieved notable success over the decades. By using by-products as raw materials in industries such as cement and fertilizers, the industry has established exemplary supply chains. Using air-cooled and steel slag as civil engineering aggregates has minimized environmental damage by reducing excessive quarrying. Recover technologies maximize the eco-friendliness of the steel industry and require continuous technological advancement and development.

Recycle technologies involve breaking down used products or raw materials for reuse or repurposing them for other applications. Currently, various recycling technologies related to steel scrap are being developed in the steel industry. Steel scrap is a major raw material in electric arc furnace (EAF) steelmaking, and recycling technologies are being developed to reduce CO2 emissions in blast furnace processes through low hot metal ratio (HMR) operations.

Tramp Element Removal Technologies

A notable Recycle technology in the steel industry is the removal of tramp elements from steel scrap. Elements such as copper (Cu) and tin (Sn) in steel scrap are challenging to remove or separate, making it difficult to produce high-purity steel products. Research focuses on effectively removing these elements in the EAF process. For copper, methods such as low-temperature shredding, aluminum solution immersion, and wet processes involving ammonia solutions containing amine ions are being developed. Various physical and chemical methods are also being explored for tin removal.

AI-based Scrap Inspection Systems

AI-powered scrap inspection systems are also being developed. Recently, automated visual inspection using AI has been actively pursued to increase steel scrap recycling efficiency. Before recycling, steel scrap is classified into various grades, such as light, heavy, and pig iron, and undergoes impurity content analysis. Previously, manual visual inspections by workers led to frequent errors and safety issues. By introducing AI-based visual inspection automation, it is possible to accurately classify and inspect scrap grades and quality based on data, thereby improving accuracy and reducing costs. Japan and China have been competitively developing this technology for the past 2-3 years. Although Korea has yet to widely implement steel scrap sorting systems in the industry, it has entered the development and validation phase.

Blockchain Technology

While not yet widespread, blockchain technology is gaining attention as a solution for traceability, transparency, and certification issues in the steel scrap industry. Blockchain can record and document transactions and transport conditions, providing reliable records at each stage from collection to processing.

Drone Utilization Technology

The use of drones to observe sites in real time from the air can preemptively address safety issues in steel scrap yards and minimize accident risks. Drones equipped with cameras and sensors also enable innovative inventory management.

The most actively developed areas in recent years are smart factory technologies and steel scrap-related fields. From the perspective of Reduce, smart factory technologies increase yield and reduce energy consumption, and their application scope is expanding with technological advancements. The steel scrap industry, particularly highlighted in the low-carbon era, sees active investments and efforts to increase recycling rates using AI and drone technologies for collection and sorting.

POSCO is also envisioning a bright future in the rapidly evolving steel industry through the lens of the 3R concept in the circular economy trend.