Perth, Australia – POSCO Group has inaugurated its Australia Core Resources Research Institute in Perth, a strategic move to strengthen its research capabilities in core minerals for steelmaking and battery materials. This marks a significant first for a South Korean company to establish a research institution directly in an raw material-rich mining region. The opening ceremony, held on May 20, was attended by POSCO Group Chairman Jeong-woo Choi, Head of Future Technology Research Institute Kim Ki-soo, representatives from local raw material suppliers, and the Commonwealth Scientific and Industrial Research Organisation (CSIRO).
POSCO Holdings' decision to localize its research efforts underscores the critical importance of raw material security and cost competitiveness in its high-cost steel and secondary battery materials businesses. By situating the institute in Australia, a global hub for mineral resources and leading research institutions, POSCO aims to enhance economic efficiency and reduce carbon emissions throughout its value chain. The company emphasized its focus on localizing research and fostering global collaborations as key drivers for this initiative.
The Australia Core Resources Research Institute will serve as a central research and development (R&D) hub for POSCO Group's core mineral endeavors. Its primary objectives include developing cost-effective, low-carbon steel production technologies leveraging new raw materials, and pioneering cost-reduction techniques in lithium and nickel processing for battery materials. Beyond these immediate goals, the institute will also delve into research on rare earth supply chains and high-efficiency separation and refining technologies, exploring next-generation core mineral businesses and identifying new investment opportunities in promising mining assets.
POSCO's relationship with Australia dates back to the early 1980s, when it began collaborating on establishing supply chains for essential minerals like iron ore and lithium. This long-standing partnership saw POSCO participate in the development of Australia's Roy Hill iron ore mine, ensuring a stable supply for its steel production. More recently, POSCO has engaged in a joint venture with Pilbara Minerals (PLS) for lithium hydroxide production, crucial for electric vehicle batteries. This collaboration has intensified under Chairman Jeong-woo Choi, who also serves as the Chairman of the Korea-Australia Business Council, further cementing the bilateral economic ties.
Chairman Jeong-woo Choi remarked at the opening ceremony, "Since receiving our first iron ore supply from Australia in 1971, POSCO has grown into a global leader in steel and battery materials, built on the unwavering trust and cooperation with the Australian government and industry. The Australia Core Resources Research Institute will combine Australia's rich resources with POSCO Group's material technology to add significant value to our key businesses and serve as a strategic base for advanced raw material processing technologies and the securement of core minerals."
This strategic move is expected to not only fortify POSCO's position in the global materials market but also contribute to the broader economic partnership between South Korea and Australia. By investing in on-site research and development, POSCO aims to optimize its raw material acquisition, enhance its technological edge in mineral processing, and contribute to more sustainable and efficient supply chains for the future of critical industries. The institute's focus on future-oriented minerals like rare earths also highlights POSCO's commitment to diversifying its portfolio and securing new growth engines in the evolving global resources landscape. This investment aligns with global trends of reshoring and securing critical mineral supply chains, crucial for advanced manufacturing and renewable energy technologies.
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