Hyundai Motor Group Signs Business Agreement With POSCO Group, Secondary Battery Material
Apr 21, 2025
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Hyundai Motor Group and POSCO Group held a memorandum of understanding (MOU) on the 21st for comprehensive business cooperation between Hyundai Motor Group and POSCO Group, including Hyundai Motor Group Vice President Han Seok-won (Director of Planning and Coordination Division) and POSCO Holdings President Lee Ju-tae (Director of Future Strategy Division) at Hyundai Motor's Gangnam-daero office building in Gangnam-gu, Seoul.
With this business agreement, Hyundai Motor Group aims to strengthen its competitiveness in major global markets and new businesses through stable supply of key mobility raw materials, and POSCO Group aims to expand its position as a material company that supplies high-quality steel and secondary battery materials for mobility along with preparing a new bridgehead for entering the North American steel market.
First of all, the two groups will promote cooperation in a wide range of areas, from the rapidly changing global trade environment in the ▲ steel field to the transition to carbon-reduced steel production.
In particular, POSCO Group is considering investing its stake in Hyundai Motor Group's construction project of an electric furnace steel mill in Louisiana, the U.S., and selling some of its production directly.
Hyundai Motor Group's Louisiana Steel Mill, with a total investment of $5.8 billion, is a steel mill specializing in automobile steel plates with consistent processes from raw materials to products, which can produce high-quality products while reducing carbon emissions compared to blast furnaces (high 爐). After completion, it produces 2.7 million tons of hot-rolled and cold-rolled steel sheets annually.
Through this, Hyundai Motor Group will stably supply high-quality automotive steel plates to major global automakers such as the U.S., including Hyundai Motor Group's Meta Plant America (HMGMA), Hyundai Motor's Alabama plant and Kia Georgia plant, which are major U.S. automobile production bases, and POSCO Group will secure a bridgehead for its entry into the North American steel market.
Hyundai Motor Group and POSCO Group have also agreed to join hands in the field of ▲ secondary battery materials.
Hyundai Motor Group plans to further solidify its global top-tier leadership by selling a total of 3.26 million electric vehicles annually in 2030. To this end, it is promoting various cooperation with global companies with expertise to secure core materials for secondary batteries.
In particular, POSCO Group has secured stable lithium raw materials through ownership and equity investments in overseas salt lakes and mines, and produces lithium hydroxide and anode materials for electric vehicle batteries at home and abroad.
The two groups plan to seek to secure stable and diversified supply chains for key secondary battery materials such as lithium, which is highly competitive in securing globally amid growing geopolitical risks, and cathode materials that determine battery life and charging performance.
Through this, it is expected to contribute to securing battery raw materials that can respond to supply chain reorganization and trade regulations in the United States and the European Union.
In addition, it plans to continue cooperation in the form of discovering areas where the two groups can exert synergy, such as developing next-generation materials, in the long run.
An official from Hyundai Motor Group said, "Through our business agreement with POSCO Group, we will expand our business opportunities in global markets such as the U.S. and further solidify the foundation for securing sustainable growth and electrification leadership in the future mobility sector."
This article was translated by Naver AI translator.
