Volvo Group Korea and POSCO signed a memorandum of understanding (MoU) to develop high-performance materials and manufacturing technologies for future construction machinery. This partnership focuses on achieving carbon neutrality and electrification by producing lighter, stronger equipment.

The companies will collaborate across the entire development cycle, including material research, application testing, and technical verification. POSCO provides advanced metals and manufacturing processes, while Volvo leads equipment design using these new materials. A primary goal involves structural lightweighting through high-strength steel and welding techniques.

These innovations will be integrated into excavators manufactured at Volvo’s Changwon plant to improve durability and performance. This cooperation secures a reliable supply chain from raw materials to final assembly.