POSCO to invest $92 billion in steel, batteries and hydrogen
POSCO Group Chairman Choi Jeong-woo delivers a congratulatory speech at the 50th anniversary of the company's first steel plant held in Pohang, North Gyeongsang Province, Monday. Yonhap
By Kim Jae-heun
POSCO Group will invest 121 trillion won ($92.44 billion) in steel, secondary batteries and hydrogen by 2030 to strengthen its competitiveness in future eco-friendly materials, the company said Monday.
More than 60 percent of the investment, or 73 trillion won, will be spent domestically ― mainly in Pohang, North Gyeongsang Province, and Gwangyang, South Jeolla Province, where the company runs its main steel mills.
“With this investment, POSCO will dominate the future technology and growth market and solidify its leading position in core businesses to open a sustainable future with eco-friendly future materials,” POSCO Chairman Choi Jeong-woo said in a speech marking the 50th anniversary of its first steel plant in Pohang, Monday. “In particular, over 60 percent of our total investment will be spent in Korea to play a role in balanced national development and creating high-quality jobs.”
According to the steelmaker's plan, it will focus not only on steel, which is the foundation and competitiveness of the company, but also secondary battery materials, which will drive new mobility in the future, and hydrogen to achieve the group's “2050 Carbon Neutral” goal.
POSCO estimates its investment of 73 million won in Korea will generate a production inducement effect of 121 trillion won and create a combined 330,000 jobs over the period.
In recent years, it has been making large investments in secondary battery materials, led by its holding company POSCO Holdings and its affiliate POSCO FutureM, and is said to have successfully transformed from a traditional steel company to a comprehensive materials company.
Moreover, POSCO plans to convert its current carbon-based steelmaking facility to HyREX, a hydrogen-reduction ironmaking facility in 2026, with the aim to commercialize it by 2030.
In order to change the furnaces of its steel mills in Pohang and Gwangyang to hydrogen reduction steel as planned, the company needs 5 million tons of hydrogen per year. POSCO plans to produce 7 million tons of hydrogen per year by 2050 to meet the demand.