Posco Chemical Expands Lithium Supply... President Min Kyung-jun: "Raw Material Winners Will Become Battery Material Winners"

Rapid Surge in Lithium Prices... Securing Supply Safety Net is Key
Pocem "Self-procurement of 91,000 Tons Annually in 2024"

Minkyung Jun, CEO of POSCO Chemical. (Photo by POSCO Chemical)

[Asia Economy Reporter Moon Chaeseok]

"The winner of raw materials will become the winner in the battery materials business."

On the 25th, Min Kyung-jun, CEO of POSCO Chemical, a leading domestic battery materials company, expressed confidence while announcing POSCO Group's expansion of lithium production capacity at its Argentina plant. This is because POSCO Chemical's competitiveness in the battery materials business is expected to significantly increase with POSCO Group's expanded investment in lithium.

Lithium, known as "white oil," is a key electric vehicle battery material that generates electricity by moving between the cathode and anode in batteries. It is the most used material among cathode raw materials. It is known that about 0.46 tons of lithium are required to produce 1 ton of high-performance electric vehicle cathode material. As demand is explosively increasing, price volatility is also rising, making supply stability more important. According to the Korea Resources Information Service, international lithium prices have increased more than fivefold over the past year. This month, the international lithium price reached 473 yuan per kilogram (about 90,438 KRW), sharply rising from 84 yuan (about 16,061 KRW) in March last year.

POSCO Chemical is scheduled to receive a large supply of lithium from POSCO Group’s Argentina Hombre Muerto salt lake lithium plant, whose groundbreaking ceremony was attended by POSCO Group Chairman Choi Jeong-woo on the 23rd, and the POSCO Lithium Solution ore lithium plant in Gwangyang, Jeollanam-do. POSCO Group will be able to produce 50,000 tons annually at the Argentina plant and 43,000 tons annually at the Gwangyang plant in 2024. The total annual lithium production of 93,000 tons is enough for about 2.2 million electric vehicles. POSCO Chemical is expected to self-procure 91,000 tons of lithium in 2024, achieving a lithium self-sufficiency rate of 102%. This will enable the production of approximately 225,000 tons of cathode material annually.

Panoramic view of POSCO Group's lithium plant in Argentina. (Photo by POSCO Chemical)

The lithium reserves at the Hombre Muerto salt lake have been confirmed to reach 13.5 million tons. Compared to other salt lakes in Argentina, it has higher lithium concentration and lower impurity levels, known for world-class productivity. By applying POSCO Group’s independently developed lithium extraction technology, production time is expected to be significantly shortened while achieving high yield. The lithium hydroxide produced by POSCO Group is mainly used as a raw material for high-nickel cathode materials that extend electric vehicle driving range. It is expected to greatly aid POSCO Chemical in developing high-performance electric vehicle battery material products and expanding market share. CEO Min said, "Based on the raw material competitiveness secured with POSCO Group’s support, we will actively market to global battery companies and increase our market share."

POSCO Group plans to continuously expand its lithium business, including increasing lithium production at the Argentina salt lake to 100,000 tons annually in connection with POSCO Chemical’s cathode material investment plans. As POSCO Group is the only global cathode material company with lithium mining rights and a large-scale mass production system, POSCO Chemical is expected to not only secure stable supply of cathode raw materials but also maximize quality and profitability, establishing unrivaled business competitiveness.

POSCO Chemical is focusing its capabilities on securing business competitiveness through raw material investments. This month, it decided to build a plant in Gwangyang with an annual capacity of 100,000 tons to produce precursor, an intermediate raw material for cathode materials. It is also investing in the production of spherical graphite and pitch for coating, intermediate raw materials for anode materials. The needle coke, a raw material for artificial graphite anodes, will be produced in-house. Through this, it plans to secure raw material competitiveness.

Last year, POSCO Group acquired shares in Ravensthorpe, a nickel refining company in Australia. It is accelerating the strengthening of its raw material value chain by securing graphite mining rights in Tanzania and entering the spent battery recycling business.

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