BHP and POSCO Advance HyREX Hydrogen-Based Iron Production Technology

BHP and POSCO Partner on HyREX Technology

BHP and POSCO signed an MoU to develop HyREX hydrogen-based ironmaking technology. The goal is to reduce emissions in steel production. POSCO’s HyREX process combines fluidized bed reactors (FBR) and electric smelting furnaces (ESF) for direct reduction iron (DRI). Both companies will exchange technical knowledge and conduct trials using Pilbara iron ore at POSCO’s Pohang demonstration plant.

The project will integrate FBR technology with ESF for large-scale hydrogen-based iron production. POSCO’s approach allows fine iron ore use without granulation, reducing processing costs. Construction of the demonstration plant is expected soon, with commissioning scheduled for early 2028.

HyREX Technology to Transform Steel and Battery Materials

The collaboration also targets environmentally friendly steel and battery material production. POSCO recently launched the Australia Critical Minerals R&D Lab in Perth. This center focuses on reducing carbon emissions and lowering raw material costs. The R&D effort will support large-scale feasibility studies of HyREX technology while advancing POSCO’s green steel strategy.

As global demand for sustainable steel rises, HyREX could set a benchmark for near-zero-emission ironmaking. Combining hydrogen-based DRI with electric smelting positions POSCO and BHP as leaders in the transition to cleaner industrial processes.

SuperMetalPrice Commentary:

The BHP-POSCO partnership demonstrates strategic alignment with decarbonization goals in the steel industry. If successful, HyREX technology may reduce Scope 1 emissions substantially. Investors and producers should watch closely, as scaling hydrogen-based ironmaking can influence global steel supply chains and energy markets.