Posco chair highlights supply chain ties across Asia-Pacific

Chang In-hwa, chair of steel giant Posco Group, made a strong case for sustainable and resilient supply chain cooperation during his speech at the Asia-Pacific Economic Cooperation CEO Summit held Thursday in Gyeongju, North Gyeongsang Province.

Speaking under the summit’s theme, “Bridge, Business, Beyond,” Chang highlighted Posco’s long-standing partnership with Australia — a relationship that began in 1971 with iron ore imports — as an example of sustainable cooperation already in action.

“Today, Australia supplies about 70 percent of the raw materials used by Posco and has become a strategic partner in both stable supply and future growth,” Chang said.

He elaborated on Posco’s collaboration with Australia across several future-oriented sectors, including low-carbon steel production, battery material supply chains and clean energy ecosystems.

“We are innovating the future steel manufacturing process called hydrogen reduction steelmaking, or HyREX,” Chang said. “With HyREX, we will offer carbon-reduced steel products, and we are considering green hydrogen from renewable energy-rich Australia."

Chang also noted that Posco is working closely with Australia to secure key materials for future industries, including lithium, nickel and rare earth elements. The group currently sources spodumene from Australian mines and began producing lithium hydroxide in Korea.

The partnership also extends to natural gas. In 2022, Posco International and Australia’s Hancock Energy jointly acquired Senex Energy, strengthening cooperation in the energy sector.

Posco’s bilateral ties with Australia are now expanding into broader multilateral initiatives across the Asia-Pacific.

One example is the Roy Hill iron ore project in Australia, launched in partnership with Japan’s Marubeni Corporation, Taiwan’s China Steel Corporation and Australia’s Hancock Prospecting in 2010. Posco is now working with Marubeni on a hot briquetted iron production project in Port Hedland in Western Australia.

"This multilateral partnership demonstrates how leading Asia-Pacific economies are working together to promote shared prosperity and a more resilient industrial ecosystem," Chang said.

After delivering the address at the summit, Chang made his way to the company’s steelworks in Pohang, North Gyeongsang Province, to greet Australian Prime Minister Anthony Albanese — the first visit by an Australian leader to a Posco facility in 22 years.

Touring the facility where Australian iron ore and coking coal are unloaded and fed into production lines, Albanese received a briefing on HyREX technology.

“Australia is one of the world’s most resource-rich countries, and a land of boundless opportunity where investment in critical minerals can drive industrial growth,” Albanese said. “Our wealth of natural resources will keep fueling the global economy, and we’re eager to build even closer ties with Korea.”

On the same day, Posco signed an agreement with BHP, Australia’s top mining company, to jointly develop HyREX technology. Under the partnership, BHP will supply iron ore and technical expertise for the construction of a HyREX demonstration plant at Pohang Steelworks.

Construction of the demonstration plant is due to begin shortly, with operations expected to commence in early 2028.