Hyundai Steel is making a strategic shift from its core steel production business to enter the fast-growing battery materials sector. The company plans to supply iron powder, a key component for lithium iron phosphate (LFP) batteries, which are expected to be mass-produced by domestic giants like LG Energy Solution, Samsung SDI, and SK On by 2026.
Hyundai Steel’s pivot comes as the company faces declining profitability in its traditional steel business, impacted by oversupply from Chinese steelmakers and falling domestic demand. The company is currently testing the quality of its iron powder with key cathode material developers such as L&F and LG Chem.
The initial supply is projected to be around 50,000 to 60,000 tons per year, enough to power 1 million electric vehicles. If successful, Hyundai Steel’s entry into the battery materials market could prove lucrative, potentially generating significant revenue as electric vehicles gain traction globally.
This move is seen as crucial for Hyundai Steel’s long-term profitability, as the steel market remains under pressure from low-cost competition and weak construction demand.
