POSCO Group Chairman Choi Jeong-woo Meets Argentine President to Discuss Cooperation in Secondary Battery Materials Business

Securing 100,000 Tons of Lithium by 2030 with $4 Billion Investment
Collaboration with Argentine Government on Lithium Plant Expansion and Cathode Material Production

Choi Jung-woo, Chairman of POSCO Group (second from the left in the front row), met with President Fern?ndez of Argentina (third from the left in the front row) and government officials on the 21st (local time) to explain current issues regarding the lithium business and discuss continuous cooperation plans for future projects.

[Asia Economy Reporter Oh Hyung-gil] POSCO Group is investing $4 billion in Argentina to produce lithium, a key material for electric vehicle batteries. The plan is to secure 100,000 tons annually by 2030.

This marks the first overseas investment since the launch of POSCO Holdings and is expected to serve as a stepping stone for the group’s leap toward becoming an "eco-friendly future materials company," as emphasized by Chairman Choi Jeong-woo of POSCO Group.

On the 21st (local time), Chairman Choi met with Argentine President Alberto Fern?ndez and government officials at the presidential palace in Buenos Aires, Argentina’s capital, to discuss cooperation on secondary battery materials business between POSCO Group and the Argentine government.

Chairman Choi arranged the meeting to express gratitude to the Argentine government for their unwavering support in successfully advancing the group’s core businesses and to explain the intention to strengthen future business cooperation.

POSCO Group acquired the Hombre Muerto salt lake in Argentina in 2018 and has spent three years building the necessary local infrastructure and completing verification of the demonstration plant.

In particular, POSCO Group plans to hold a groundbreaking ceremony on the 23rd for a lithium commercialization plant near the Hombre salt lake. This plant is expected to produce 25,000 tons of lithium hydroxide, with production projected to reach 100,000 tons by 2030.

On this day, the Argentine government also promised comprehensive support, including infrastructure assistance and permits, for POSCO Group’s overall lithium business in the country.

Chairman Choi said, "This year marks the 60th anniversary of diplomatic relations between the two countries, making this meeting and groundbreaking ceremony even more meaningful. POSCO Group was the first Asian steelmaker to declare carbon neutrality by 2050, and it is expanding its business areas beyond steel to become a leading eco-friendly future materials company through secondary battery materials, lithium, nickel, and hydrogen businesses."

He added, "Lithium, an essential material for electric vehicle batteries, is a key business area driving POSCO Group’s future growth, and cooperation at the government level in Argentina is essential."

President Fern?ndez responded, "We appreciate POSCO Group’s proactive large-scale investment in Argentina’s salt lakes to produce lithium directly. The government will actively support all aspects, including infrastructure and permits, to ensure POSCO Group’s lithium business achieves quick results and expands in scale."

On the same day, POSCO Group signed a business expansion memorandum of understanding (MOU) with the Argentine government to promote future lithium plant expansion and cathode material production cooperation. POSCO Group plans to increase lithium production in Argentina and locally produce cathode materials, thereby strengthening the secondary battery materials value chain.

POSCO Group is the first to acquire lithium mines in Argentina and proceed with the entire process from exploration to construction and operation of lithium hydroxide production facilities for batteries.

Additionally, Chairman Choi requested cooperation not only in the secondary battery materials business but also in hydrogen and food businesses, and President Fern?ndez promised active cooperation.

Argentina has a natural environment suitable for renewable energy such as solar and wind power, making it very advantageous for green hydrogen projects. It is also the world’s largest soybean exporter and a major exporter of grains such as wheat and corn, making it a suitable partner for cooperation in the food business. Chairman Choi also asked for the Argentine government’s support for the 2030 Busan Expo bid as part of private diplomacy.

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