POSCO Holdings to Secure Lithium from Oilfield Brine in Canada

MOU for Cooperation on Lithium Brine Project with Alberta Investment Office, Canada

Lithium phosphate produced from the Hombre Muerto salt lake in Argentina, developed by POSCO Holdings. Photo by Jeong Dong-hoon

POSCO Holdings has partnered with the Invest Alberta Corporation (IAC) of Alberta, Canada, to secure lithium from oil-field brine. Oil-field brine is water found around geological formations containing oil, which contains minerals such as lithium.

On the 8th, POSCO Holdings and IAC signed a memorandum of understanding at the Embassy of Canada in Korea, attended by Lee Kyung-seop, Head of the Secondary Battery Materials Business Team (Executive Vice President) at POSCO Holdings, and Rick Christiaanse, CEO of IAC.

POSCO Holdings is seeking partners to collaborate on developing lithium resources from oil-field brine within Alberta and is reviewing investments by identifying mining sites where lithium development is feasible. The company plans to promote the oil-field brine lithium business by demonstrating the optimal commercial lithium extraction process. In this process, IAC will provide administrative support for POSCO Holdings' investments in Alberta, act as a bridge to promising businesses, and offer information on resource development and tax benefits to facilitate smooth business operations.

Alberta leads Canada’s oil and shale gas industries and is also gaining attention for having one of the world's largest oil-field brine lithium reserves. Although the lithium content in oil-field brine is somewhat lower compared to traditional brine resources, large-scale deposits have been reported in the US, Canada, and other regions, making it an emerging lithium resource. In particular, many companies are exploring, developing, and commercializing lithium production using Direct Lithium Extraction (DLE) from oil-field brine in depleted oil fields, with global lithium companies at the forefront. DLE refers to a method of extracting lithium through adsorption or other techniques without evaporation and concentration processes.

Based on lithium extraction technology and business capabilities accumulated through its lithium brine project in Argentina and lithium ore project in Australia, POSCO Holdings is conducting investment reviews and R&D for commercializing oil-field brine lithium projects. Notably, over the past six years, POSCO Holdings has independently developed DLE technology with world-class performance and productivity and is actively pursuing its commercialization.

Through this agreement with IAC, POSCO Holdings can diversify its raw material supply chain to include non-traditional lithium resources such as clay and oil-field brine, in addition to existing brine and lithium ore. Furthermore, by securing a lithium production base in North America, the company plans to establish a foundation for stable lithium procurement in North America, including responding to the US Inflation Reduction Act (IRA).

At the signing ceremony, Rick Christiaanse, CEO of IAC, said, “With this collaboration, Alberta, one of the world’s largest lithium reserves, is poised to become a global leader in lithium production in connection with POSCO Holdings’ North American secondary battery materials business strategy.”

Lee Kyung-seop, Head of the Secondary Battery Materials Business Team, stated, “Through strategic cooperation with IAC, POSCO Holdings will strengthen the lithium supply chain and enhance its position in the global secondary battery materials market. Additionally, the abundant resources of Alberta combined with POSCO Holdings’ innovative technology will create opportunities for sustainable growth.”

POSCO Holdings is currently constructing commercial plants for lithium brine phases 1 and 2 with a total capacity of 50,000 tons, and a lithium hydroxide plant based on lithium ore with an annual capacity of 43,000 tons. In addition, linked to strategic mineral investment activation policies such as the Canadian Minerals and Metals Plan (CMMP), the company is advancing its lithium business in Canada. By 2030, POSCO Holdings aims to achieve a global top 3 position with a lithium production capacity of 423,000 tons and strengthen the full value chain of its secondary battery materials business.

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