Participants shovel sand in the groundbreaking ceremony for the second phase of the lithium project called Sal de Oro near the Salar del Hombre Muerto salt lake in northern Argentina on June 28, 2023 (local time) in this photo provided by POSCO.
SEOUL, June 30 (Korea Bizwire) — POSCO Holdings, a leader in lithium self-sufficiency for secondary batteries, has begun the construction of the second phase of its lithium production plant in Argentina.
A groundbreaking ceremony was held at Hombre Muerto Salt Lake, attended by the Korean Ambassador to Argentina, the Head of Eco-Friendly Future Materials at POSCO Holdings, and the Governor of Salta Province.
The completion of the lithium brine phase 2 upstream plant will yield 25,000 tons of lithium carbonate per year.
POSCO Holdings plans to finalize the project by the second half of 2025 with an investment of approximately 1 trillion won (US$757 million).
Construction, operation, and financing are being overseen by POSCO Argentina, a wholly-owned subsidiary.
The plant will extract lithium carbonate from the second phase and transport it to South Korea for further processing into lithium hydroxide.
The downstream processing site for lithium hydroxide was relocated to Korea to comply with the U.S. Inflation Reduction Act (IRA) and ensure a timely supply to POSCO Future M Co.’s domestic cathode material plants.
In 2018, POSCO Holdings acquired the salt lake in Argentina to secure lithium for secondary battery anodes. The first phase of the 25,000-ton brine lithium plant is expected to be completed in the first half of 2024.
Once both phases are completed, POSCO Holdings will be capable of producing 50,000 tons of lithium annually, enough for 1.2 million electric vehicles.
This move aims to reduce reliance on Chinese suppliers dominating the global battery material market.
POSCO Group’s integrated approach, from mineral acquisition and processing to cathode material production, is expected to enhance competitiveness.
The company plans to expand the Argentinian facility to produce 100,000 tons of lithium per year by 2028 and establish a 300,000-ton/year lithium production system by 2030 through various avenues like ore lithium and battery recycling.
These efforts position POSCO as a global leader in lithium production.
Kevin Lee (kevinlee@koreabizwire.com)
