POSCO Holdings to Produce Korea's First Lithium for Secondary Batteries

First Groundbreaking of a 25,000-ton Annual Capacity Lithium Hydroxide Production Plant in Yulchon 1 Industrial Complex, Jeollanam-do on the 13th

POSCO Holdings is building the first lithium hydroxide plant in Korea using Argentina brine for secondary battery materials. It will produce enough lithium for 600,000 electric vehicles annually.

Jaehoon Oh, Deputy General Manager of DP Production Technology at POSCO Argentina, is explaining the 'pond' within the lithium production process located at Hombre Muerto Salt Lake in Argentina. Photo by Donghoon Jung

The groundbreaking ceremony held on the 13th at the Yulchon 1 Industrial Complex in Jeollanam-do was attended by National Assembly members Ahn Cheol-soo of the Special Committee on Advanced Strategic Industries, Kim Hoe-jae of the Industry, Trade, Energy, Small and Medium Enterprises Committee, Jeong In-hwa, Mayor of Gwangyang, Son Jeom-sik, Vice Mayor of Suncheon, Kim Myung-hwan, President of LG Energy Solution, and Choi Jeong-woo, Chairman of POSCO Group.

Chairman Choi Jeong-woo said, "We will strengthen global resource competitiveness including lithium and lead the localization of materials to contribute to the development of domestic industries, including the secondary battery sector."

The lithium hydroxide for secondary batteries produced by the lithium plant, which broke ground on this day, will have an annual capacity of 25,000 tons, enough to make about 600,000 electric vehicles. POSCO Holdings plans to invest approximately 575 billion KRW with a goal of completion in 2025. POSCO Lithium Solution, a 100% subsidiary of POSCO Holdings, will be responsible for financing, construction, and operation of the plant.

In particular, this lithium hydroxide plant groundbreaking is part of the second phase investment in Argentina brine lithium announced last October. The upstream process producing lithium carbonate, the raw material for lithium hydroxide, is located at the Argentina salt lake owned by POSCO Holdings, while the downstream process producing lithium hydroxide is decided to be located domestically.

To proactively secure lithium, a key material for cathode active materials for secondary batteries, POSCO Holdings acquired the Ombre Muerto salt lake in Argentina in 2018 and is constructing the first phase upstream and downstream brine lithium plant with a capacity of 25,000 tons in Argentina.

POSCO Holdings plans to expand lithium production up to 100,000 tons by 2028 based on additional investments in the Argentina salt lake.

Meanwhile, POSCO Group is building an ore lithium plant of POSCO Pilbara Lithium Solution within the Yulchon Industrial Complex and is operating POSCO Future M’s cathode material plant and POSCO HY Clean Metal’s spent battery recycling plant, creating a secondary battery material complex and developing it into a production hub.

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