POSCO Successfully Completes Lithium Hydroxide Plant in Argentina

POSCO Holdings has announced the completion of its lithium hydroxide production plant in Guemes, Salta Province, Argentina, on October 27, as reported by several media reports. A ceremony was held on October 24 at the Hombre Muerto Salt Pan in Salta Province to celebrate the achievement. This facility, which has an annual capacity of 25,000 tons, will produce lithium hydroxide, a crucial material for cathodes used in electric vehicle (EV) battery production. This quantity can support battery production for approximately 600,000 EVs.

With the completion of this new plant, POSCO Holdings’ annual lithium hydroxide output capacity now reaches 46,500 tons. This includes the output from POSCO Pilbara Lithium Solution’s plant at the Yulchon Industrial Complex in Gwangyang, South Jeolla Province, which produces 21,500 tons of lithium hydroxide from lithium ore. According to Kim Jun-hyung, head of POSCO Holdings' Secondary Battery Materials Division, “The completion of this plant is an important first step for POSCO Group to produce high-value-added lithium in Argentina.” Kim added that future projects would strengthen POSCO Group’s role as a global leader in the lithium sector.

The new facility is the initial stage of POSCO Holdings’ three-phase expansion in Argentina. In 2018, POSCO acquired the mining rights for Hombre Muerto Salt Pan and established a local subsidiary, POSCO Argentina. By 2022, POSCO invested around $830 million in building the facility to support the upstream and downstream production processes of this first phase.

The lithium hydroxide production at this facility benefits from POSCO’s proprietary lithium extraction technology, which is designed to improve operational efficiency by recycling auxiliary raw materials. A POSCO representative explained that this innovation reduces maintenance costs while enhancing sustainability.

POSCO Holdings is also advancing its phase two expansion to produce an additional 25,000 tons of lithium from brine, investing approximately 1 trillion won. This second phase is scheduled for completion in the latter half of 2025. Looking ahead, POSCO plans to invest further in a third phase, expected to yield an additional 50,000 tons of lithium annually, to reach a total production capacity of 100,000 tons of lithium from brine. This multi-phased strategy reflects POSCO Holdings' commitment to securing a leading position in the rapidly growing lithium market as demand for EV batteries intensifies globally.

POSCO, a South Korean steel manufacturer headquartered in Pohang, South Korea, operates two integrated steel mills in the country, located in Pohang and Gwangyang. Previously, POSCO was part of a joint venture with U.S. Steel, known as USS-POSCO Industries, based in Pittsburg, California. However, in February 2020, U.S. Steel acquired full ownership of this facility.