POSCO Group makes a colossal investment of $40 billion in Australia

The POSCO Group and its partners will make a sizable investment in Australia totaling 52 trillion won by 2040.

Chairman Choe Jung-woo met with Australian Prime Minister Anthony Albernage in the Parliament Building in Canberra, Australia’s capital, on the same day, according to POSCO Group, “to discuss collaboration on eco-friendly future projects between POSCO Group and the Australian government on the 1st.”

He continued, “We see Australia as the most important investment target country to secure hydrogen, which is essential for hydrogen-reducing steelmaking. POSCO Group has declared carbon neutrality by 2050 and is working hard to develop hydrogen-reduced steel, which emits water instead of carbon dioxide in steel production.

He emphasized his commitment to Australian industry by saying, “In the future, we want to significantly increase the scope and scale of investment in Australia, not just to conventional steel raw resources, but also to renewable energy, hydrogen, and green steel.”

In particular, POSCO Group intends to generate HBI (Hot Briquetted Iron), a raw material from the processing of iron ore, based on competitive large-scale renewable energy sources such as solar and wind power.

Additionally, green hydrogen produced in Australia will be created from ammonia and sent throughout the world, as well as POSCO’s own hydrogen-reducing steel technology, HyREX, which will be used to increase the production of Slab, a semi-finished steel product.

In order to achieve this, POSCO Group plans to invest a total of U$40 billion (approximately KRW 52 trillion) by 2040, of which U$28 billion (approximately KRW 36.4 trillion) will go toward green steel production and U$12 billion (approximately KRW 15.6 trillion) will go toward hydrogen production using renewable energy and water electrolysis.

“We will actively work with POSCO Group’s eco-friendly future materials business in Australia,” said Australian Prime Minister Anthony Albernizi. “POSCO Group’s business and investment ambitions in Australia are in keeping with the policy direction adopted by the Australian government.”

Additionally, it has been reported that Australian Prime Minister Anthony Albernizi will visit POSCO during his visit to Korea in the upcoming year. He has also expressed a desire to see POSCO Pilbara Lithium Solution, a lithium production facility that is a joint venture between an Australian company and POSCO Holdings.

To develop resources like iron ore, lithium, and nickel, POSCO Group has invested more than KRW 4 trillion in Australia. Australia is regarded as the best nation for the development of clean hydrogen abroad because it has a sizable site, a wealth of solar and wind resources, and a great business environment with cutting-edge laws and systems.