POSCO Lithium Solution Co., Ltd. breaks ground on lithium hydroxide plant in Gwangyang

Domestic Lithium Raw Material Production, Previously 100% Dependent on Imports, Signals New Beginning

[Asia Economy Honam Reporting Headquarters, Reporter Heo Seonsik] Gwangyang City, Jeollanam-do announced on the 26th that it held a groundbreaking ceremony for POSCO Lithium Solution Co., Ltd.'s lithium hydroxide plant at the Yulchon Industrial Complex project site (2228, Sepung-ri, Gwangyang-eup).

The groundbreaking ceremony was attended by Choi Jeong-woo, Chairman of POSCO; Min Kyung-jun, President of POSCO Chemical; Lee Seong-won, Head of POSCO Lithium Solution Corporation; as well as Kim Young-rok, Governor of Jeollanam-do; Seo Dong-yong, Member of the National Assembly; Kim Kyung-ho, Vice Mayor of Gwangyang City; and Kim Gap-seop, Head of the Gwangyang Bay Area Free Economic Zone Authority.

Earlier on the 6th, Gwangyang City, Jeollanam-do, and the Gwangyang Economic Zone Authority signed a large-scale Memorandum of Understanding (MOU) with POSCO Lithium Solution Co., Ltd., pledging active support to enable mutual growth between the region and the company.

The POSCO Lithium Solution Co., Ltd. lithium hydroxide plant, to be built on a 196,103㎡ (59,321 pyeong) site, plans to invest 760 billion KRW by 2023 to produce 43,000 tons of lithium hydroxide annually, sufficient for manufacturing 1 million electric vehicles per year, with 260 new jobs created.

With the groundbreaking of the lithium hydroxide plant, high-quality domestically produced products will be supplied to domestic lithium demand companies that had previously relied 100% on imports. It is expected to achieve an import substitution effect worth 370 billion KRW annually, calculated by subtracting 210 billion KRW in ore import costs from 580 billion KRW in lithium sales.

Vice Mayor Kim Kyung-ho said, “I sincerely congratulate the groundbreaking of the Gwangyang plant for Lithium Solution, a core of the future new growth business of secondary batteries,” and added, “We ask for your continued interest and cooperation so that POSCO’s future core businesses will continue to invest in Gwangyang City after the establishment of this new plant.”

As of May, Gwangyang City has attracted investments from six companies totaling 784.3 billion KRW and 344 jobs, and plans to accelerate efforts to achieve this year’s goal of attracting 30 companies and 1.5 trillion KRW in investments.

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