Gyeongju: The head of the South Korean steel giant POSCO Holdings Inc. has emphasized the company’s growing partnership with Australia in the fields of low-carbon steel and critical minerals. This collaboration is seen as a model for building sustainable supply chains across the Asia-Pacific region.
According to Yonhap News Agency, Chang In-hwa, CEO of POSCO Holdings, spoke at the Asia-Pacific Economic Cooperation (APEC) CEO Summit during a session focused on sustainable supply chains. Chang highlighted that Australia currently supplies around 70 percent of POSCO’s raw materials and acts as a crucial strategic partner in the company’s transition to low-carbon solutions.
Chang elaborated on the company’s innovative approach to steelmaking through a process known as hydrogen reduction steelmaking, or HyREX. This method aims to significantly cut CO2 emissions by using hydrogen instead of coal. He pointed out that POSCO is promoting green hydrogen, sourced from Australia’s renewable energy resources.
Moreover, Chang mentioned the expanding cooperation between the two countries in secondary battery materials, such as lithium and nickel. Since 2024, POSCO has been producing lithium hydroxide in Korea using spodumene from Australian mines, signifying the company’s move towards projects based on sustainable raw materials rather than fossil fuels.
The CEO also noted the strengthening of collaborations in the clean energy sector, citing the joint acquisition of Senex Energy with Australia’s Hancock Energy in 2022. Additionally, he mentioned that POSCO’s relationship with Australia has grown into a broader regional partnership, referencing the company’s involvement in the Roy Hill iron ore project in Australia with Hancock Prospecting, Japan’s Marubeni Group, and China Steel Corp.
Chang concluded by urging Asia-Pacific businesses to commit to sustainability and supply-chain resilience, stating that a sustainable future requires proactive efforts from companies to drive change and progress beyond current practices.