Groundbreaking of a 575.1 Billion KRW 'Lithium Hydroxide Plant' in the Gwangyang Bay Area

Completion of 25,000-Ton Lithium Production System by 2025

Expected to Lead Activation of Secondary Battery Material Business

The Gwangyang Bay Area Free Economic Zone Authority (Commissioner Song Sang-rak, hereinafter referred to as Gwangyang Economic Authority) and Jeollanam-do announced on the 13th that a groundbreaking ceremony was held for the construction of a lithium hydroxide plant worth 575.1 billion KRW in the Yulchon 1st Industrial Complex with POSCO Lithium Solution Co., Ltd.

The groundbreaking ceremony was attended by about 100 people, including POSCO Group executives such as Chairman Choi Jeong-woo of POSCO Holdings Co., Ltd. and CEO Park Hee-seok of POSCO Lithium Solution Co., Ltd., customers, and officials from Jeonnam Provincial Government, Suncheon City, and Gwangyang City.

[Photo by Gwangyang Economic Promotion Agency]

Lithium hydroxide (LiOH) is a key material for secondary battery cathode materials and, along with another key raw material, nickel, is an important substance that determines battery capacity and lifespan.

When the plant is completed in 2025, it will be able to produce 25,000 tons of lithium hydroxide annually, and the hiring of 210 management and production employees is expected to greatly contribute to revitalizing the local economy. The 25,000 tons of lithium hydroxide can supply batteries for 630,000 electric vehicles.

This groundbreaking is expected to further strengthen POSCO Group's integrated supply chain system for secondary battery materials by stably supplying lithium hydroxide necessary for cathode material production, and it is also anticipated to contribute to enhancing the competitiveness of the national advanced strategic industry of secondary batteries.

Chairman Choi Jeong-woo of POSCO Holdings Co., Ltd. said, "POSCO Group will secure global resource competitiveness in the secondary battery business, including lithium, and grow as a company that contributes to realizing an eco-friendly future society with the mindset that our competitiveness is the nation's competitiveness."

Song Sang-rak, Commissioner of Gwangyang Economic Authority, said, "The investment in the lithium processing plant by POSCO Lithium Solution Co., Ltd. will greatly contribute not only to establishing a core ecosystem for secondary batteries in the Gwangyang Bay Area and stabilizing the supply chain but also to creating good jobs and revitalizing the local economy. The Gwangyang Economic Authority will actively support investment companies so that they can invest quickly without inconvenience."

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr

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