South Korea’s industrial giants Posco Group and Hyundai Motor Group have signed an MOU to enhance cooperation across steel and battery materials.

Under the new partnership, Posco aims to strengthen its position as a premier global supplier of low-carbon steel and advanced battery materials, while Hyundai seeks to secure a stable, high-quality materials supply chain to support its growing EV ambitions. The new agreement was formalised on 21 April at Hyundai Motor Group’s headquarters in Gangnam, Seoul, Kallanish notes.

Hyundai plans to ramp up annual EV sales to 3.26 million units by 2030. To support this goal, it is actively forging partnerships with leading players in the battery material sector.

Posco, meanwhile, is securing stable supplies of lithium through ownership and investments in overseas brine lakes and mines. It currently produces battery-grade lithium hydroxide, as well as anode and cathode materials, across domestic and international facilities.

Additionally, the companies are collaborating in the steel sector, with Posco investing in Hyundai’s planned $5.8 billion electric arc furnace in Louisiana, US. The plant, designed as an integrated automotive steel production facility, will feature a continuous process from raw materials to finished products and aims to significantly reduce carbon emissions compared to traditional blast furnaces.

The new MOU builds on discussions that began last year under Posco Holdings chairman Jeong-Woo Choi’s strategic vision of “complete localisation” and high-value overseas expansion in both steel and battery sectors, Posco said.

“This strategic agreement with Posco Group will expand our business opportunities in key global markets such as the United States, while further solidifying our foundation for sustainable growth and leadership in the future mobility and electrification sectors,” Hyundai comments.