POSCO Breaks Ground on South Korea's Inaugural Lithium Hydroxide Production Facility

South Korea: POSCO Holdings recently began construction of South Korea’s first Lithium Hydroxide plant at the Yulchon 1st Industrial Complex in Jeollanam-do province. The plant is part of POSCO's strategic plan to establish a vertically integrated supply chain for manufacturing EV batteries. The company plans to produce Lithium Hydroxide using Lithium Carbonate sourced from its Salinas Grandes project in Argentina and shipped to Korea for further processing. The facility is expected to have an annual production capacity of 25,000 tons of Lithium Hydroxide. Construction of the plant commenced on June 13, 2023.

POSCO Pilbara Lithium Solution, a subsidiary of POSCO Holdings, will finance, construct, and operate South Korea's first Lithium Hydroxide plant. The project is part of POSCO's investment in Argentina's Lithium resources, which was announced in October 2022. The initial stage of the production process will involve producing Lithium Carbonate, the raw material for Lithium Hydroxide, at a Salt Lake in Argentina owned by POSCO Holdings. The subsequent production of Lithium Hydroxide will take place in South Korea, where the newly constructed plant will be located.

According to sources, South Korean steelmaker, POSCO, has closed a deal to purchase lithium mining rights in Argentina from Galaxy Resources for $280 million. The deal, worth $280 million, allows POSCO to purchase a package of tenements in the northern area of the Sal de Vida project. This move is part of POSCO's ongoing investment in the Lithium sector, with previous acquisitions including mining rights for the Hombre Muerto Salt Lake in 2018. With this latest purchase, POSCO aims to secure its position as a major player in the global Lithium market.

Recently, the Hombre Muerto Lithium salar in Argentina has garnered attention for being one of the most desirable locations in South America for its high Lithium brine grades, low levels of impurities, and high flow rates. Livent Corp has been producing 20,000 tonnes/year of battery-grade Lithium from the salar for over 25 years, making it the longest producing salar in Argentina. Looking to expand their production, POSCO Holdings plans to invest in the Salt Lake Lithium production in Argentina, with hopes of reaching 100,000 tons by 2028. Alongside this investment, POSCO Group is also building a Lithium ore factory in the Yulchon Industrial Complex, operating a POSCO Future M electrode material factory, and establishing a POSCO HY Clean Metal used battery recycling factory, all with the aim of developing a production hub for battery materials.