Posco International said Tuesday that it clinched a partnership with Dutch hyperloop technology provider Hardt, with an aim to seek business opportunities in the global market for ultra high-speed, eco-friendly transportation system.

Under the agreement, Posco International will work on securing a smooth supply of Posco-manufactured steel materials for hyperloop facilities in Europe, and work further with Hardt on marketing the transportation. It is also considering a minor stake investment in the Dutch firm, adding that details on such plans are still being developed.

Earlier this year, Posco International’s steelmaking affiliate developed a special steel called PosLoop355 and began supplying 275 metric tons to Hardt for a 450-meter test operation route at a testing facility called the Europe Hyperloop Center in the Netherlands.

Hyperloop, a term that combines hypersonic and loop, refers to a high-speed transportation system for passengers and cargo. It was first proposed as a concept by Elon Musk in 2013. Comprised of three major parts – tube, pod and terminal -- hyperloop works by moving sealed tubes and passenger or cargo pods at very high speeds. It can move up to 1,200 kilometers per hour, making it capable of connecting Seoul and Busan in 20 minutes as an example.

Posco International said it saw a vision in this high-speed, eco-friendly transportation system for large volumes of passengers and cargo as the next mode of future mobility after EV.

It said hyperloop only required 10 percent the energy required to fly an airplane. Compared to building train terminals and tracks, just 50 percent of costs are put to building the hyperloop system.

Established in 2016, Hardt became known in 2017 when it won Elon Musk's hyperloop competition in the same year. Currently, it owns seven core exclusive technologies for the hyperloop system such as decompression technology.