POSCO breaks ground for lithium hydroxide plant in South Jeolla Province

POSCO Group Chairman Choi Jeong-woo, sixth from left, poses with Rep. Ahn Cheol-soo, a lawmaker of the People Power Party, fifth from left, and other government and company officials during the groundbreaking ceremony for the steelmaker's lithium hydroxide plant in Yeosu, South Jeolla Province, Tuesday. Courtesy of POSCO Holdings

By Kim Hyun-bin

POSCO Holdings is constructing Korea's first lithium hydroxide plant to increase the lithium supply for secondary batteries, the company said Tuesday, adding that it will produce enough lithium for approximately 600,000 electric vehicles (EV) annually.

The groundbreaking ceremony took place at the Yulchon Industrial Complex in South Jeolla Province, Tuesday. Attendees included Rep. Ahn Cheol-soo, a lawmaker and former presidential contender, LG Energy Solution President Kim Myung-hwan and POSCO Group Chairman Choi Jeong-woo.

"We will enhance the global competitiveness of lithium and other key resources, lead domestic material localization and contribute to the development of domestic industries, including the secondary battery sector," POSCO Group Chairman Choi Jeong-woo said.

The new plant will have an annual capacity of 25,000 tons of lithium hydroxide, which is enough for approximately 600,000 EVs. POSCO Holdings plans to invest approximately 575 billion won and aims to complete the construction by 2025.

The construction of the lithium hydroxide plant is part of the second phase of investment in Argentina announced last October. POSCO Holdings decided to locate the primary process of producing lithium carbonate, the raw material for lithium hydroxide, at its salt flat in Argentina, while establishing the secondary process of producing lithium hydroxide domestically.

To secure lithium, a key material for cathode materials in secondary batteries, POSCO Holdings acquired the Hombre Muerto lithium salt flat in Argentina in 2018 and is currently constructing the primary and secondary processes for the production of 25,000 tons of lithium. POSCO Holdings plans to expand lithium production up to 100,000 tons by 2028 through additional investments based on the Hombre Muerto lithium salt flat.

Meanwhile, within the Yulchon Industrial Complex, POSCO Group is constructing an ore lithium plant for POSCO Pilbara Lithium Solution and operating a cathode material plant for POSCO Future M. This complex is planned to become a production base for secondary battery materials.