POSCO chief calls for stronger Australia-Korea resource supply chain

POSCO Group Chairman Chang In-hwa has called for stronger cooperation between Korea and Australia in securing critical minerals and building resilient resource supply chains.

He has particularly underscored the need for Australia’s abundant natural resources to be combined with Korea’s advanced processing technologies.

Chang made the proposal Wednesday at the 47th Korea-Australia Economic Cooperation Committee annual joint meeting in Adelaide, where he attended as chairman of the Korean side.

More than 200 government and business leaders from both countries attended the meeting, including Australian Foreign Minister Penny Wong and Trade and Tourism Minister Don Farrell.

Chang said critical minerals could become a new growth engine for economic cooperation between the two countries. He also requested deeper and broader bilateral partnerships in energy, defense, space and research and development.

“Critical minerals have the potential to become a new growth pillar for industrial cooperation between the two countries,” Chang said in his opening remarks.

He also raised the need for closer cooperation to stabilize natural gas supplies and develop renewable energy projects, saying the two countries should expand their partnership into future-oriented industries.

The meeting, established in 1979, focused on three major areas: cooperation in steel, secondary battery materials and critical minerals, innovation and the energy transition for decarbonization.

POSCO Group highlighted the activities of the Australia Critical Resources Institute, its first overseas research center specializing in resources, underscoring the need to move bilateral cooperation beyond resource procurement toward technological partnerships.

POSCO International also said energy cooperation between the two countries was evolving beyond securing traditional resources to jointly developing renewable energy businesses.

Chang stepped up his resource diplomacy ahead of the meeting, holding separate talks with Australian Industry and Innovation Minister Tim Ayres and Farrell.

During the meetings, Chang asked the Australian government to support POSCO Group’s steel, lithium and energy projects in the country. He also met with Kathleen Conlon, chair of Pilbara Minerals, to discuss ways to strengthen cooperation in lithium-related businesses.

Chang’s push for deeper ties with Australia is part of POSCO Group’s “Triple Core” strategy, under which the group is expanding beyond steel by building three major business pillars — industrial resources, such as steel; strategic resources, including lithium; and energy.

Australia is a key partner for POSCO Group, accounting for about 70 percent of its raw material procurement.

The group has maintained broad cooperation with Australian entities across steel, battery materials and energy sectors. Since beginning long-term purchases of Australian iron ore in 1971, POSCO has imported more than 1.5 billion tons of Australian raw materials and participated in the Roy Hill iron ore mine development from its early stages in 2010.

In battery materials, POSCO Group operates a lithium hydroxide plant in Korea’s Yulchon Industrial Complex through a joint venture with Pilbara Minerals and recently acquired a stake in a high-quality lithium mine owned by Australia’s Mineral Resources.

In the energy sector, POSCO Group acquired Australia-based Senex Energy in 2022 and has continued to expand its natural gas business.