Hyundai Steel, Korea’s second-largest steelmaker, is moving to target the global low-emission steel market amid increasing demand from carmakers moving toward net zero emissions.

Hyundai Steel recently signed a memorandum of understanding to supply low-emission steel plates to Tawesco, a leading Czech auto parts manufacturer, and Eusider, an Italian firm specializing in automotive steel plate processing.

Both companies supply major European automakers, such as Volkswagen and Stellantis, and are intensifying their focus on reducing carbon emissions.

Such deals came in response to the European Union’s Carbon Border Adjustment Mechanism, an EU policy that imposes a carbon tariff on imported carbon-intensive products, to encourage countries outside the EU to adopt higher environmental standards.

The partnership with European companies will give a tailwind to the Korean firm with plans for joint marketing initiatives and component testing already underway.

Joining this collective effort, Hyundai Steel is currently investing in carbon-reduced steel plate facilities at its Dangjin Steel Mill.

In another significant move, the steelmaker entered into a nondisclosure agreement with the Advanced Remanufacturing and Technology Center in Singapore to develop Vision AI technology to innovate steel manufacturing processes and improve product quality.

“This partnership builds on our ongoing collaboration with the Hyundai Motor Group Singapore Global Innovation Center, further strengthening its technological capabilities and competitive edge in the global market,” a Hyundai official said.

As Hyundai Steel aims to become a key supplier of steel materials for offshore wind structures, the company is exploring new revenue streams by venturing into the offshore wind energy sector.

Offshore wind energy projects require high-performance steel that can withstand harsh conditions such as seawater, vibration and low temperatures. The company has already made significant inroads in this sector, supplying steel pipes for the foundation structures of the Jeju Hallim offshore wind farm, South Korea’s largest project of its kind, and securing contracts for Taiwan’s TPC offshore wind project.

According to the International Renewable Energy Agency, global offshore wind capacity is projected to increase from 34 gigawatt-hours in 2020 to 228 GWh by 2030, with a potential expansion to 1,000 GWh by 2050. As the market expands, the demand for high-quality steel materials will become a critical factor, and Hyundai Steel states that it is well-positioned to capitalize on this trend.

“The global demand for offshore wind plant materials is expected to grow, and we are committed to securing a leading position in this market by investing in advanced materials and technologies,” the Hyundai Steel official said.