POSCO to Build Lithium Extraction Plant in Gwangyang... Capable of Producing 1 Million Electric Vehicles

[Asia Economy Reporter Kim Hyewon] POSCO has completed verification of lithium extraction technology and is now actively promoting its commercialization project.

On the 14th, POSCO announced that it reported and received approval from the board of directors on the 9th for an investment project to build a lithium ore extraction plant with an annual capacity of 43,000 tons in the Yulchon Industrial Complex within the Gwangyang Free Economic Zone.

The 43,000 tons of lithium is enough to produce 1 million electric vehicles. Since 2010, POSCO has been developing technology to extract lithium from brine and ore in collaboration with the Pohang Institute of Industrial Science and Technology (RIST). By operating a demo plant (pilot facility) within the Gwangyang Steelworks for more than two years, POSCO has accumulated know-how for lithium production and trained specialized personnel, securing the capabilities to prepare for commercial lithium production.

The lithium extraction plant POSCO is promoting will primarily use lithium ore produced mainly in Australia as the main raw material, applying in-house developed production processes to configure the production line. Construction is planned to begin within the first half of this year, aiming for completion in 2023. The new plant will exclusively produce lithium hydroxide, which plays an important role in extending the driving range of electric vehicles.

Lithium used as a raw material for cathode materials is divided into lithium carbonate and lithium hydroxide, both of which function to generate and store electricity. Until now, the secondary battery industry has mainly produced cathode materials using lithium carbonate as the main raw material. However, as secondary battery technology has advanced to increase the driving range of electric vehicles, cathode materials containing more than 80% nickel have been developed, and the demand for lithium hydroxide used in these materials is gradually increasing.

POSCO also plans to start construction this year on a local plant with an annual capacity of 25,000 tons at a salt lake in Argentina where lithium reserves have been confirmed. Through medium- to long-term investments in lithium extraction projects from ore and brine, POSCO aims to establish a lithium production system of 70,000 tons annually by 2023, 130,000 tons annually by 2026, and 220,000 tons annually by 2030.

This content was produced with the assistance of AI translation services.