POSCO builds two factories for eco-friendly vehicles

POSCO Group Chairman Choi Jung-woo, fourth from right, poses with Pilbara Minerals CEO Dale Henderson, third from left, while celebrating the opening of its lithium hydroxide factory in South Jeolla Province, Wednesday. Courtesy of POSCO Group

POSCO Group has completed the construction of two factories producing lithium hydroxide and electric steel, as part of plans to tighten its position as a manufacturer of key materials used for eco-friendly vehicles, the company said Wednesday.

POSCO-Pilbara Lithium Solution, a joint venture between the Korean steelmaker and Australia’s Pilbara Minerals, aims to set up a stable production system for lithium hydroxide with the new factory in South Jeolla Province. Lithium hydroxide is considered a key material for secondary batteries.

The facility has a production capacity of 21,500 tons of lithium hydroxide each year. The company also plans to open its second factory with the same capacity sometime in 2024. This will allow POSCO to produce 43,000 tons of the material annually, which is enough to manufacture batteries for around 1 million electric vehicles (EVs).

POSCO Group has succeeded in producing the material by itself, eliminating dependence on imports, after developing and applying its technology for extracting lithium from raw materials, the company said. The achievement signifies that the company has contributed to stabilizing domestic supply chains for raw materials needed for secondary batteries.

The company also finished building another plant manufacturing Hyper NO, its non-oriented electrical steel, on the same day. The facility comes with a capacity of 150,000 tons each year. According to the steelmaker, the plant will meet growing demand for eco-friendly vehicles and high-end steel products for electronics.

The company is considering a plan to build a new electrical steel plant in North America, and plans to stabilize supply chains so that it can manufacture 100 tons of electrical steel each year by 2030 amid increasing demand for EVs.

“POSCO Group has secured a leading position in the global eco-friendly vehicle market, as it can produce the key secondary battery materials independently,” POSCO Group Chairman Choi Jung-woo said. “We have established a cornerstone for enhancing national competitiveness and becoming a leading eco-friendly future materials company.”