GEN1 Energy "Pursuing Acquisition of Lithium Triangle Salt Lakes in South America"

[Asia Economy Reporter Jang Hyowon] GEN1 Energy is set to acquire a brine lake in the South American 'Lithium Triangle.' While advancing lithium direct extraction projects in North American brine lakes, the company plans to acquire a brine lake in South America to create business synergies.

On the 18th, GEN1 Energy announced that it has submitted a letter of intent to acquire mining rights for a brine lake located in South America. This brine lake is situated within the South American 'Lithium Triangle,' spanning Argentina, Bolivia, and Chile. This region holds 65% of the world's lithium reserves.

A company official stated, "We are currently negotiating with the seller who holds the mining rights, so we can only provide limited information about the brine lake," adding, "We will disclose information about the brine lake step-by-step as negotiations progress."

If GEN1 Energy acquires the mining rights for the brine lake, it will become the second Korean company to produce lithium after the POSCO Group. Lithium is used in cathode materials, which account for 40% of the cost of electric vehicle batteries.

GEN1 Energy, together with its new largest shareholder, EntuTech, is promoting the construction of a pilot plant for lithium direct extraction at the Great Salt Lake in the United States. This brine lake acquisition is a strategy to enhance competitiveness in the new lithium extraction business and diversify operations.

The official added, "While reviewing the construction of the lithium extraction pilot plant, we determined that securing a brine lake is crucial," and said, "We plan to develop a two-track business using North American lithium direct extraction and South American brine lake mining rights." He continued, "Securing a brine lake in the capital-intensive lithium extraction business is expected to facilitate collaboration with global partners."