▶ Confirmed truck battery pack supply to Tata Daewoo Commercial Vehicle▶ Prototype to be produced during 2024 H1, production and supply planned in 2025▶ “Will expand battery pack vehicle types and broaden client base from home to abroad”South Korea, October 19, 2023 – HD Hyundai Infracore will start developing battery packs for trucks with the goal of entering the electric commercial vehicle market.HD Hyundai Infracore recently confirmed that it will supply battery packs for trucks to Tata Daewoo Commercial Vehicle and announced that the two parties will work on strengthening mutually cooperation to extend EV product types.Based on this agreement, HD Hyundai Infracore will start producing battery pack prototypes during the 2024 H1 and mass produce in 2025 of which will be supplied to Tata Daewoo Commercial Vehicle.Battery packs for commercial vehicles require various features including durability, stability, and strong power as these vehicles are not only for regular roads, but also used in harsh environments. What is noteworthy is that HD Hyundai Infracore’s battery pack can be flexibly designed according to voltage level and volume by changing the configuration of the general cylinder battery cells.HD Hyundai Infracore plans to develop battery packs for commercial vehicles that are small and light in size and dense in energy using its battery modularization and pack design technologies. It will also be applying ‘ASIL-C Level’ safety technology, one of the highest degrees defined by the ISO 26262 standard, to its products to maximize functional safety of road vehicles.Tata Daewoo Commercial Vehicle will be joining the application demonstration and product development process for EV battery packs, and supporting its application to different vehicle types from C-segment to cargo trucks and special vehicles.Commercial vehicles including trucks and vans are required to change to zero-emission vehicles as they heavily emit carbon dioxide. As a matter of fact, new sales for diesel vans and mini trucks will be banned in Europe from 2035 while larger vehicles such as trucks and buses will need to mandatorily reduce carbon emission by 90% in 2040, compared to 2019.According to a global market research platform, Markets and Markets, the global electric commercial vehicle market volume is projected to grow from 529,400 units in 2023 to 2,155,100 units in 2030, which is a fourfold increase.HD Hyundai Infracore’s CEO Seung-hyun Oh mentioned, “We have been able to pioneer the EV market with on our proprietarily produced battery pack technology,” and added, “Based on such success, we plan to gradually expand the vehicle types applied with our battery packs and extend our supplier base to emerging countries and other regions.”Meanwhile, HD Hyundai Infracore’s Engine Business is working on adding more products to its eco-friendly powertrain lineup to provide sustainable energy solutions to customers. Proprietary battery packs produced in 2023 have been applied to the company’s 1.7T electric excavators while it is also in the process of developing hydrogen combustion engines for commercial vehicles, construction equipment, and generators. <EOD>*ASIL(automotive safety integrity level): A risk classification system defined by the ISO 26262 standard for functional safety of road vehicles. There are four ASILs identified by ISO 26262―A, B, C, and D. ASIL A represents the lowest degree and ASIL D represents the highest degree of automotive hazard.■Photo Description: Tata Daewoo’s C-segment truck which will be applied with HD Hyundai Infracore’s battery pack

▶ Signed MOU with POSCO on ‘Development of Resources and Autonomous Site Technologies’ ▶ HD Hyundai to spur development and commercialization of smart autonomous technologies for construction equipment▶ POSCO to build a big data based integrated control system for management optimization▶ Hopes to improve site productivity and safety with resources developed with autonomous technologiesSouth Korea, September 26, 2023 – HD Hyundai and POSCO will be working together to speed up the development of smart autonomous technologies. HD Hyundai shared that it signed an MOU with POSCO Holdings on ‘Development of Resources and Autonomous Site Technologies’ at the HD Hyundai Global R&D Center in Pangyo, Korea on Tuesday, Sep. 26th in which HD Hyundai XiteSolution President Dong-wook Lee, HD Hyundai Vice President Wan-soo Kim, POSCO Holdings AI Research Center Chief Joo-min Kim, and other stakeholders attended.The first step for both parties will be using remote control to develop autonomous technologies for construction equipment and working on its commercialization through demonstrations in Korea.  They will also be completing an optimized solution for different sites with an integrated control platform that can comprehensively and effectively manage autonomous equipment and its progress on site. HD Hyundai will be working with its subsidiaries, HD Hyundai XiteSolution, HD Hyundai Construction Equipment, HD Hyundai Infracore, and utilizing smart, remote control, and other unmanned technologies to create technologies for autonomous machines that are required when developing resources and managing operations at site. POSCO Holdings will be collaborating with POSCO E&C, POSCO DX and utilizing big data and know-hows on resource development and site operation to build communication facilities required at work sites and an integrated control system that can oversee construction plans and operate various unmanned machines. Resource development sites are generally located in harsh areas that are geologically and environmentally difficult to approach. That is why when smart autonomous technologies are applied to machines, it will help enhance productivity as well as relieve labor shortage issues within the industry. According to a recently published report by the Construction & Economy Research Institute of Korea on the ‘Analysis on the Productivity of Korea’s Construction Industry’ (’22.11.29), labor productivity index has increased throughout all industries while labor productivity reduced for the construction industry.  HD Hyundai Vice President Wan-soo Kim mentioned, “We are expecting an innovative change at resource development and construction sites as HD Hyundai and POSCO, leaders of smart construction, converge its smart and autonomous technologies,” and emphasized that “HD Hyundai will convene all of our competence to realize autonomous technologies early on.” POSCO Holdings AI Research Center Chief Joo-min Kim added on and said, "I believe that with the synergy created between the two parties, we will be able to use autonomous technology to remotely control and oversee construction and resource development sites, creating better productivity and a safer working environment.” <EOD> ■ Photo Description: HD Hyundai signed an MOU at its HD Hyundai Global R&D Center in Pangyo, Korea on Monday, Sep. 25th. From the right, HD Hyundai Vice President Wan-soo Kim, POSCO Holdings AI Research Center Chief Joo-min Kim.

▶ Approval by Ministry of Trade, Industry and Energy▶ It will be implemented from August for nine ships under construction▶ Up to four tank trucks are introduced using a self-manufactured mobile manifold▶ Expect 70% reduction in fuel injection time and 65% reduction in greenhouse gas generation HSHI (Hyundai Samho Heavy Industries), an HD Hyundai affiliate, will launch a special demonstration project to supply fuel to liquefied natural gas (LNG) propulsion ships more efficiently and eco-friendly than before. HSHI announced on the 26th that it will simultaneously refuel nine LNG dual-fuel propelled container ships currently under construction since August with up to four tank lorries using its own mobile manifold (a device that connects the ship to the tank lorries). On September 5 last year, the Ministry of Trade, Industry and Energy approved the "regulatory sandbox system" of LNG ship charging tests using mobile manifolds applied by HSHI and HD Hyundai Heavy Industries. According to the current Enforcement Rules of the Urban Gas Business Act, LNG-powered ships can only refuel with less than two tank lorries (one refueling, one atmosphere) at a time. For this reason, it takes about 40 hours to refuel 600 tons of fuel needed for the sea test. However, if four tank trucks are connected at the same time using a mobile manifold, the refueling will be completed in 12 hours. This is expected to reduce gas evaporation effectively, resulting in a 65% reduction in greenhouse gas emissions compared to conventional methods. HSHI secured stability by preparing "exemplary safety standards" for this project with the regulatory agency KGSC (Korea Gas Safety Corporation), and subscribed to gas accident liability insurance exclusively for demonstration projects in case of safety accidents. The pilot area is the first quay wall of the HSHI plant, and the pilot period is valid for two years from the commencement date of the project. If the relevant laws and regulations are not revised before the expiration of the business, an additional two years can be extended. An HSHI official said, "We will do our best to successfully complete the demonstration special project so that the eco-friendly fuel supply of dual-fuel-powered ships can be efficient in a short period of time." On the other hand, the regulatory sandbox system organized by the Ministry of Trade, Industry and Energy is a system that allows operators to provide services for a certain period of time by delaying existing regulations when new services or products are released to foster the industry. (The end) ■ Photo DescriptionConceptual diagram of LNG propulsion ship fuel charging test using mobile manifold and multiple tank lorry.List

▶ Signed an MOU on ‘Mutual Partnership to Develop and Commercialize Hydrogen Internal Combustion Engines’▶ Eco-friendly, economic prototype to be produced starting from late 2024▶ “Will work on providing more sustainable eco-friendly energy solutions”HD Hyundai Infracore (CEO: Young-cheul Cho, Seung-hyun Oh) will be expanding its realm with its partnership with Korean East-West Power to develop Hydrogen Internal Combustion Engines (H2ICE) and target the clean energy generation market.  HD Hyundai Infracore shared that it signed an MOU on ‘Mutual Partnership to Develop and Commercialize Hydrogen Internal Combustion Engines (H2ICE)’ on Friday, July 7 at its HD Hyundai Global R&D Center in Pangyo, Korea.  With this agreement, HD Hyundai Infracore will be building a 1MW-class H2ICE system by integrating five of its 200kW, 11L emission hydrogen combustion engines that are currently being developed.  Korea East-West Power Co. will be supporting the demonstration of H2ICEs by using its hydrogen supply facilities and power grid infrastructure at the Ulsan Power Plant.H2ICEs, which use hydrogen as its only combustion fuel, have an advantage in both reducing costs and advancing commercialization goals as it uses existing diesel engine technologies and facilities to reach zero carbon emissions.  According to a report on H2ICE released by an engine parts manufacturer Garett Motion, market share of H2ICEs that only take up 5% of the market in 2030 will grow to 20% in 2040. Other global engine manufacturers including MAN, Cummins, and JCB are also in the process of developing their own hydrogen combustion engines.  The two parties plan to produce a prototype by the end of 2024 as its first collaboration stage and work on expanding the H2ICE line up. They will then follow by advancing into the hydrogen power generation market while focusing on the Clean Hydrogen Energy Portfolio Standards (CHPS). Executive Vice President Joong-soo Kim of HD Hyundai Infracore’s engine business division said, “We will use this opportunity to expand our eco-friendly powertrain line up including the development of the 500kW-class and larger H2ICEs for constant power generation, and produce green energy to provide sustainable solutions to our customers.”Meanwhile, HD Hyundai Infracore’s engine business division started the development of a ‘Storage and supply system for hydrogen internal combustion engines used in construction equipment/commercial vehicles’ after being nominated as national project’s main host last year. It also exhibited its H2ICE prototype for the first time at ConExpo 2023 held in Las Vegas last March. <EOD>■ Photo Description: HD Hyundai Infracore and Korea East-West Power Company signed an MOU on the ‘Mutual Partnership to Develop and Commercialize Hydrogen Internal Combustion Engines (H2ICE)’ at HD Hyundai GRC in Pangyo, Korea.(From the left, Joong-soo Kim, Executive Vice President of HD Hyundai Infracore’s Engine Business Division, Young-chan Lee, Vice President of Business Developing Group, Korea East-West Power Company)

▶ Analysis on the company’s financial influence to climate change▶ Includes strategy and roadmap for a sustainable future of HD Hyundai’s Construction Equipment businessHD Hyundai XiteSolution (CEO: Young-cheul Cho, Dong-wook Lee) announced on the 21st that they issued the industry’s first TCFD report that includes strategies for a sustainable future of HD Hyundai’s Construction Equipment business.This is the company’s first step in showcasing efforts of HD Hyundai’s construction equipment business in responding to climate change since announcing its goal to reach carbon neutrality by 2050.TCFD (Task Force on Climate-related Financial Disclosure) is a consultative body formed in 2015 based on the request of the Group of 20 (G20) and by the Bank of International Settlements (BIS) and the Financial Stability Board (FSB) to provide information on what companies are doing to mitigate risks of climate change.TCFD’s 2017 recommendations include disclosure of financial information related to climate change including the company’s governance and strategy, risk management, management indicators and mitigation goals. HD Hyundai XiteSolution’s first TCFD report also faithfully includes all four items mentioned in this recommendation.HD Hyundai XiteSolution analyzed different scenarios such as potential risks or opportunities that could affect the company’s financial affairs, and physical risks such as coastal flooding, extreme heat that could occur during its transformation to a low carbon economy. It also included carbon neutrality plans for its businesses home and abroad, GHG mitigation efforts, and valuation results on eco-friendly products such as hydrogen excavators, hydrogen forklifts, and hydrogen internal combustion engines. The total social value calculated by Ernst &Young, which adds up customer, human, social, financial value, reached approximately KRW 160 million (approx. $124,000) for one hydrogen forklift when operated for one decade. Indicators and goals on GHG emissions, total energy consumption, carbon emissions during product usage, have also been specified as part of its goal to reach carbon neutrality by 2050. GHG emissions of HD Hyundai’s construction equipment business was around 8% for business offices home and abroad, and 88% during equipment usage.HD Hyundai XiteSolution also announced its roadmap through this report, stating that it will adjust its product portfolio to products that use eco-friendly technologies, reduce 25% emissions during the product usage stage on an annual basis, and reach carbon neutrality in its business sites by 2050.The company plans to continue working on its strategy to reduce carbon emission during machine operation by applying a feature that calculates carbon emissions on the telematics system which is mandatory for mid-to-large sized equipment.HD Hyundai XiteSolution’s TCFD report can be found on its official website.

HD Hyundai Oilbank announced that it has issued “2022 ESG Integrated Report: ECO-FRIENDLY FUTURE WITH GREEN ENERGY.”This report covers HD Hyundai Oilbank's annual ESG activity performance and management performance, including the key ESG issues, impacts, and management measures selected through the materiality assessment process.Through the report, HD Hyundai Oilbank introduces the company's practical efforts to respond to climate change, such as strengthening the greenhouse gas management organization and establishing carbon reduction action plan. The compnay also presents specific strategy to realize a sustainable future with bio business, resource recycling business, eco-friendly hydrogen and chemical materials business, etc.Chu Young-min, CEO of HD Hyundai Oilbank, said, “We will overcome the challenges of the times, such as carbon neutrality and energy paradigm shift, with an innovative attitude and seek new opportunities.” He added, “We will continue to work hard to prioritize safety and the environment and strengthen communication with stakeholders.”The report was produced as an interactive PDF that allows navigation to related pages and web page hyperlinks, improving user convenience. The full report can be found on HD Hyundai Oilbank official website, where Korean and English versions are available.