POSCO Holdings to Extract 2.8 Million Tons of Lithium from Argentina Brine

Ombre Muerto Salt Lake Lithium Commercialization Plant Groundbreaking
Chairman Choi Jung-woo's First Global Move Since Holding Company Launch
Enhancing Cathode Material Business Competitiveness Through Large-Scale Lithium Securing

Argentina Salt Lake to Produce at Least 2.8 Million Tons of Lithium
"Aiming to Become a Top 3 Global Lithium Producer by 2030"

Choi Jung-woo, Chairman of POSCO Group (center), is expressing his gratitude to attendees along with Governor Saenz of Salta Province and Governor Haril of Catamarca Province at the groundbreaking ceremony for the first phase of the lithium brine project held on the 23rd (local time) at Hombre Muerto Salt Lake in Argentina.

[Asia Economy Reporter Oh Hyung-gil] POSCO Holdings is accelerating its efforts to secure lithium, a key raw material for electric vehicle battery materials.

On the 23rd (local time), POSCO Holdings broke ground on a lithium commercialization plant at the Hombre Muerto salt lake located in Salta Province, Argentina. This is the first time in Korea that a company is in charge of everything from acquiring mining rights to exploration, and construction and operation of production plants.

The groundbreaking ceremony was attended by Choi Jeong-woo, Chairman of POSCO Group; Yoo Byung-ok, Head of POSCO Holdings' Eco-friendly Future Materials Team; Kim Kwang-bok, Head of POSCO Argentina; Gustavo S?enz, Governor of Salta Province; Ra?l Jalil, Governor of Catamarca Province; and Jang Myung-soo, Ambassador to Argentina.

The plant is planned to have an annual production capacity of 25,000 tons of lithium hydroxide and aims to be completed by the first half of 2024. An annual production of 25,000 tons of lithium hydroxide is enough to supply about 600,000 electric vehicles.

The total investment, including infrastructure and working capital, is approximately $830 million (about 950 billion KRW). The construction, operation, and financing of the plant will be carried out by POSCO Argentina, a 100% subsidiary of POSCO Holdings.

POSCO Group plans to increase production capacity to 50,000 tons by the end of 2024 through an additional investment in the second phase of 25,000 tons. Production at the Hombre Muerto salt lake is expected to expand up to 100,000 tons by 2028.

Choi Jung-woo, Chairman of POSCO Group (center), is presiding over the groundbreaking ceremony for the first phase of the Hombre Muerto salt lake lithium brine project in Argentina on the 23rd (local time).

With this investment, the company expects to secure lithium in large quantities ahead of time, significantly strengthening its competitiveness in the cathode material business. Cathode materials mainly consist of lithium, nickel, and manganese, and stable procurement of raw materials leads to competitiveness.

POSCO Group plans to become a global 'Top 3' lithium producer by 2030 based on brine, ore, and recycled battery materials through group-level entities such as POSCO Argentina, POSCO Lithium Solutions, and POSCO HY Clean Metal.

Governors S?enz and Jalil said, "We are pleased to partner with POSCO Group, which uniquely possesses capabilities across the entire secondary battery material chain from lithium raw materials to cathode and anode materials," and added, "We appreciate the contribution to local job creation and will continue to actively support POSCO Group's lithium business."

Chairman Choi Jeong-woo stated, "This is a very historic day for Argentina, the Republic of Korea, and POSCO Group," adding, "The lithium business that we have been preparing for several years takes its great first step today, and the brine lithium project will be the foundation of POSCO Group's secondary battery materials business."

Meanwhile, Montgomery, a global brine lithium specialist consulting firm based in the U.S., estimated the lithium reserves at the Hombre Muerto salt lake to be 13.5 million tons in lithium carbonate equivalent. Considering mining feasibility and yield, it is expected that at least 2.8 million tons of lithium can be produced.

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