South Korean steelmaker POSCO has announced that it has signed a HyREX Collaboration Agreement with Australian mining company BHP to cooperate on the verification and commercialization of POSCO's hydrogen-based steelmaking technology.
Under the agreement, signed on September 3 in Pohang, POSCO will use BHP's iron ore to test the performance of its HyREX process under different raw material conditions. The companies aim to verify stable operation of the technology using actual raw materials and determine optimal iron ore conditions based on characteristics and quality.
Companies expand cooperation beyond raw material supply
HyREX is POSCO's hydrogen reduction steelmaking technology that produces molten iron using hydrogen as a reducing agent instead of coal. Through the cooperation, BHP will also assess the suitability of its iron ore for next-generation low-carbon steelmaking processes. The two companies will share expertise related to raw materials for hydrogen-based steelmaking and explore opportunities to reduce Scope 3 carbon emissions associated with the raw material supply process. The latest agreement follows a memorandum of understanding signed by POSCO and BHP in October 2025 and, as SteelOrbis reported previously.
POSCO stated that the partnership is part of its strategy to establish cooperation throughout the global supply chain as it transitions toward a decarbonized steel production system. POSCO also plans to expand cooperation with other global raw material suppliers to accelerate the development of low-carbon steelmaking technologies.
