South Korean steelmaker POSCO has announced a new partnership with US climate-tech company Electra to jointly develop low-carbon ironmaking technology. The agreement aims to combine POSCO’s direct reduction know-how with Electra’s electrochemical ironmaking process, supporting the steel industry’s transition toward lower-emission production.
Sandeep Nijhawan, co-founder and chief executive officer of Electra, said POSCO brings extensive experience in steelmaking, production technology and process development. He added that the partnership will help Electra scale its clean iron technology carefully as it seeks to supply more customers in the long term.
Eom Kyeong-geun, head of POSCO Technical Research Laboratories, stated that the joint development agreement is intended to create strategic synergy between POSCO’s proprietary direct reduction and engineering technologies and Electra’s innovative electrochemical process.
Kim Keun-hwan, president of POSCO Investment, said the investment represents POSCO Investment’s first overseas strategic CVC investment in the decarbonized steel sector. He added that the agreement has special significance as a climate-tech investment made in preparation for the era of decarbonization.
