Hyundai Motor Group has decided to collaborate with POSCO Group in the fields of steel and secondary battery materials. This is aimed at responding to uncertainties in the global trade environment, including tariffs, and strengthening future competitiveness.
Hyundai Motor Group and POSCO Group announced that they signed a memorandum of understanding (MOU) for comprehensive business cooperation in areas including steel and secondary battery materials on the 21st.
With this MOU signing, Hyundai Motor Group aims to enhance global market and future new business competitiveness through a stable supply of key raw materials for mobility.
POSCO Group aims to establish a new foothold for entering the North American steel market and expand its position as a materials supplier of high-quality steel and secondary battery materials for mobility.
POSCO Group is also considering plans to invest in equity in Hyundai Motor Group's electric furnace steel mill construction project in Louisiana and directly sell some of the production volume.
The Louisiana steel mill, in which Hyundai Motor Group is investing $5.8 billion (over 8 trillion won), is a specialized automotive steel mill that has a consistent process from raw materials to products. It is characterized by its ability to reduce carbon emissions compared to blast furnaces while producing high-quality products.
Through this, Hyundai Motor Group will be able to reliably supply high-quality automotive steel to major automotive production hubs such as the Meta Plant America (HMGMA), Alabama plant, and Kia Georgia plant, while POSCO Group can secure a foothold for entering the North American steel market.
Both companies have also agreed to cooperate in the field of secondary battery materials. They plan to seek means of securing a diversified supply chain for key materials, such as anode materials that determine battery life and charging performance, including lithium. POSCO Group is securing lithium raw materials through ownership and equity investments in foreign salt lakes and mines.