This photo, provided by POSCO on March 25, 2022, shows its lithium plant and brine water storage facility in northern Argentina.
SEOUL, March 25 (Korea Bizwire) — POSCO Chemical Co., a unit under South Korean steel giant POSCO, said Friday it expects to be able to secure more than 90,000 tons of lithium through in-house supply, backed by the parent firm’s aggressive investment in the key material for rechargeable batteries.
By 2024, POSCO Chemical will procure from POSCO Group all 91,000 tons of lithium it needs to make 225,000 tons of cathode materials annually, the chemical company said. Its self-sufficiency rate is forecast to reach 102 percent, it said.
The outlook came after POSCO announced US$4 billion investment in a new lithium mining project in northern Argentina.
POSCO expects to produce about 25,000 tons of lithium hydroxide, eyeing to increase the production to up to 100,000 tons a year in the coming years.
Lithium hydroxide is a key material for cathodes used in high-performance electric vehicle batteries, which are rich in nickel.
POSCO Group said it expects to build up its annual capacity to 93,000 tons for lithium hydroxide production in 2024, enough to be used in 2.2 million electric vehicles.
POSCO has a domestic lithium ore plant in the southwestern city of Gwangyang, South Jeolla Province, where it is expected to produce an annual 43,000 tons of lithium from next year.
This photo, provided by POSCO Chemical on March 25, 2022, shows its cathodes plant in Gwangyang, South Jeolla Province, about 400 kilometers southwest of Seoul.
POSCO Chemical, whose primary products largely include refractories and basic industrial materials, has been diversifying its portfolio to battery and other advanced materials, in line with the global trend toward electrification and eco-friendly business.
Earlier this month, POSCO Chemical unveiled a plan to build a new plant to produce EV battery precursors within its Gwangyang complex.
Last year, POSCO Chemical announced a joint venture agreement with U.S. General Motors Co. on building a battery materials plant in North America and other cooperation projects.
It has also decided to build a cathode and precursor plant in China, and is seeking to construct another in Europe.
POSCO Chemical has unveiled plans to increase its annual cathode production capacity of 105,000 tons to 280,000 tons in 2025 and 420,000 tons in 2030.
(Yonhap)
