POSCO Group is expanding beyond steel, with Gwangyang in Jeonnam-Gwangju playing an important role in its plans for advanced materials and energy. Its “Triple Core” strategy combines steel, strategic resources and energy, reflecting the growing importance of reliable industrial supply chains.
According to The Korea Herald, the group plans to invest KRW 16.7 trillion under the strategy. While its resources business extends across international markets, Gwangyang brings together several of the group’s priorities: advanced automotive steel, battery-related industries and LNG infrastructure.
A Major Expansion of Gwangyang’s LNG Infrastructure
On November 10, 2026, POSCO International held the completion ceremony for its second LNG terminal in Gwangyang. The KRW 949.2 billion project adds two storage tanks of 200,000 kilolitres each, increasing total storage capacity from 930,000 to 1.33 million kilolitres. The expansion also includes facilities for LNG carriers and ship fuel supply.
The terminal connects several parts of POSCO’s business: it uses the group’s cryogenic high-manganese steel, was built by POSCO E&C and is operated by POSCO International. Alongside storage and gas supply, the company plans to expand services such as LNG carrier commissioning and marine bunkering. These developments strengthen Gwangyang’s role in the group’s energy network.
New Technology for Lower-Carbon Steel
Gwangyang’s industrial transformation also includes a new electric arc furnace inaugurated in June 2026, with an annual capacity of 2.5 million tonnes. Technology supplier Tenova explains that the facility is designed to work alongside the existing blast furnaces, melting scrap steel and enabling it to be combined with hot metal to meet demanding quality requirements.
The installation uses continuous scrap charging and preheating, together with electromagnetic stirring technology developed by Tenova and ABB. According to POSCO’s estimates reported by Tenova, the facility could reduce CO₂ emissions by up to 75% compared with the conventional blast furnace route. This is a projected reduction for the production route, rather than a measured reduction across the entire Gwangyang works.
Strategic Materials for Future Industries
Beyond steel and energy, POSCO is broadening its activities in lithium, graphite, rare earths and specialty gases. These materials support sectors ranging from batteries and electric vehicles to robotics and semiconductor manufacturing. The group aims to build more diversified supply chains, including an annual lithium production capacity of 173,000 tonnes by 2030.
What This Means for Jeonnam-Gwangju and Europe
Taken together, these developments point to a broader industrial role for Gwangyang: an established steelmaking location is adding new production technologies and energy infrastructure while remaining connected to international materials markets. For European industry, Tenova’s involvement provides a concrete example of technology cooperation already taking place in the region. Further progress will depend on customer demand, investment delivery and the commercial rollout of new production methods.