POSCO completes upstream process of 2nd lithium plant in Argentina
POSCO Holdings Chairman Chang In-hwa, seventh from left, and other dignitaries pose during a completion ceremony for the upstream process of the company's second brine lithium plant in Argentina, Tuesday (local time). Courtesy of POSCO Holdings
POSCO Holdings has completed the upstream process of its second brine lithium plant at the Hombre Muerto Salt Flat in Argentina, laying the groundwork for an annual production capacity of 50,000 tons of lithium hydroxide, eight years after acquiring mining rights to the site.
POSCO Holdings held a completion ceremony for the upstream process on Tuesday (local time) near the salt flat, located at an altitude of 4,000 meters above sea level. The ceremony was attended by POSCO Group Chairman Chang In-hwa, POSCO Argentina President Park Hyun, Argentine presidential chief of staff Karina Milei and Korean Ambassador to Argentina Lee Chong-hwa, among others.
"Since I became head of the new business division in 2014, I have personally visited sites to find salt flats suitable for lithium development. It is deeply moving to have overcome numerous challenges in the extreme environment at 4,000 meters above sea level and reach today's completion," Chang said.
"We will continue to proactively secure competitive resources, turn them into production and profitability and stably supply the critical minerals needed by national industries.”
POSCO Holdings invested $954 million in the upstream process of Plant 2, which has an annual production capacity of 23,000 tons of lithium carbonate. Combined with Plant 1's annual capacity of 25,000 tons, the company's lithium carbonate production capacity in Argentina has reached 48,000 tons annually.
Lithium carbonate produced at Plant 2 will be sent to a downstream facility scheduled for completion at the Yulchon Industrial Complex in South Jeolla Province in 2027. There, it will be converted into 25,000 tons of battery-grade lithium hydroxide annually, bringing POSCO Group's total brine-based lithium hydroxide production capacity to 50,000 tons.
POSCO Group began developing its own lithium extraction technology in 2010 and acquired mining rights to the Hombre Muerto Salt Flat in 2018. It completed Plant 1 in 2024 and began commercial production with an annual capacity of 25,000 tons.
POSCO Argentina became the first Korean company to receive approval under Argentina's Regimen de Incentivo para Grandes Inversiones, securing benefits including corporate tax reductions and tariff exemptions. In August, it also received approval for a $700 million short-term borrowing facility from IDB Invest.
POSCO Holdings plans to accelerate investments in Plants 3 and 4, each with an annual lithium carbonate production capacity of 25,000 tons, to achieve a 100,000-ton annual brine lithium production system by 2033.
POSCO Argentina signed a memorandum of understanding with the governments of the Salta and Catamarca provinces on the same day to advance the two projects. The provincial governments agreed to provide administrative and permitting support.