Posco Introduces Cutting-Edge System for Manufacturing High-Quality Lithium for Batteries

Posco Holdings, in collaboration with local secondary battery company W-Scope Korea, announced a significant breakthrough on Thursday, revealing the successful development of a crucial system essential for acquiring lithium hydroxide. This achievement represents a strategic advancement in Posco Holdings' efforts to establish a self-sufficient production process for battery-grade lithium hydroxide, reducing dependency on imported components.

Utilizing a membrane electrodialysis process, Posco Holdings has been producing battery-grade lithium hydroxide from lithium brine and ore. Previously, however, the company relied entirely on imported components for its membrane electrodialysis process. The newly developed membrane electrodialysis system is expected to result in cost savings for Posco Holdings while ensuring a stable supply of key components crucial to the lithium hydroxide production process.

The collaborative efforts between Posco Holdings and W-Scope Korea commenced in 2021, focusing on the development of their proprietary membrane electrodialysis system. With the completion of this development phase, W-Scope Korea will play a crucial role in providing essential components for the system, including membranes.

Although specific details regarding the cost savings resulting from the in-house electrodialysis system were not disclosed by Posco Holdings, the company revealed plans to initially implement the membrane electrodialysis system in its brine lithium plant in Argentina. This facility is projected to achieve an annual production capacity of 25,000 tons of lithium hydroxide upon completion in the first half of 2024.

Subsequently, the membrane electrodialysis system will be integrated into South Korea's first lithium hydroxide factory, situated within the Yulchon Industrial Complex in Suncheon, South Jeolla Province. This factory, owned by Posco-Pilbara Lithium Solution, commenced operations in the previous month and boasts an annual production capacity of 21,500 metric tons of lithium hydroxide, sourced from lithium ore imported from Pilbara Minerals in Australia.

Posco-Pilbara Lithium Solution has ambitious plans for expansion, intending to construct a second lithium hydroxide plant adjacent to the initial facility by 2024. This expansion aims to double the production capacity to an impressive 43,000 tons per year, reinforcing the Yulchon Industrial Complex as a prominent hub for lithium hydroxide production.

Posco Holdings clarified that while the membrane electrodialysis system will be applied to certain lithium hydroxide plants, other facilities may employ different processes. The diversity in production methods reflects the company's commitment to employing the most suitable technologies for each specific context.

Looking ahead, Posco Holdings has set an ambitious target of producing a combined 423,000 tons of lithium hydroxide, derived from lithium ores, brines, and other sources, by the year 2030. This vision underscores the company's dedication to meeting the growing demand for lithium hydroxide while contributing to the sustainable development of the energy storage industry.