China Baowu and Rio Tinto have successfully completed industrial-scale palletization and hydrogen-based direct reduced iron (DRI) trials in China using Rio Tinto’s Pilbara Blend iron ore, marking a significant step in the development of lower-carbon steelmaking technologies.
The trials were conducted at Baowu’s Zhanjiang steelworks, where pellets containing one-third Pilbara Blend ore were processed through a hydrogen-based shaft furnace to produce DRI. The material was subsequently converted into steel using a basic oxygen furnace and further tested in an electric smelting furnace.
According to the companies, the results demonstrate that mid-grade Pilbara iron ore can be used as feedstock for hydrogen-based direct reduction processes, potentially expanding the range of raw materials suitable for low-carbon steel production.
The milestone forms part of a 2023 memorandum of understanding between Baowu and Rio Tinto aimed at exploring technologies to reduce emissions across the steel value chain. The two companies have been collaborating on steel decarbonization initiatives since 2020.
Rio Tinto said the successful trials provide further confidence that Pilbara iron ore can play a role in future low-carbon steelmaking routes, particularly when combined with hydrogen-based direct reduction and electric smelting technologies.
Baowu and Rio Tinto added that they will continue working together on additional projects aimed at accelerating the transition to lower-emission steel production.
China Baowu Group is the world’s largest steel producer, operating integrated steelmaking facilities across China. The company’s crude steel output reached 124.76 mln tons in 2025.
