POSCO Group Completes First Lithium Production Plant for Secondary Battery Materials

Securing Growth Engines as a Leading Eco-Friendly Future Materials Company

POSCO Philbar Lithium Solution Completes Hydroxide Lithium Production Plant

Gwangyang Steelworks Establishes High-Efficiency Non-Oriented Electrical Steel Sheet Facil

POSCO Group announced on the 29th that it has completed the construction of POSCO Pilbara Lithium Solutions' lithium hydroxide plant in the Yeolchun Industrial Complex, Jeonnam, and a high-efficiency non-oriented electrical steel sheet (Hyper NO) plant at POSCO Gwangyang Steelworks.

With the completion of this lithium hydroxide plant, POSCO Group will begin the first domestic commercial production of key raw materials for its secondary battery materials business, a core new growth engine for the group. Additionally, by expanding the Hyper NO plant based on world-class technology, the group has established a foothold to lead the global eco-friendly vehicle materials market.

POSCO Group completed the construction of POSCO Philbar Lithium Solution's lithium hydroxide plant in the Yeolchun Industrial Complex, Jeonnam, on November 29.
Photo by Gwangyang Steelworks

POSCO Pilbara Lithium Solutions was established in 2021 as a joint venture between POSCO Holdings and the Australian mining development company Pilbara Minerals. The company aims to build a production system for secondary battery material lithium hydroxide based on Australian ore lithium with an annual capacity of 43,000 tons by 2024.

The first plant, completed on this day, has an annual capacity of 21,500 tons, and a second plant of the same scale is planned to be completed in 2024. The 43,000 tons of lithium hydroxide is enough to produce approximately 1 million electric vehicles.

On the same day, POSCO Group completed the first phase of the Hyper NO plant with an annual capacity of 150,000 tons at POSCO Gwangyang Steelworks to respond to the growing global demand for steel for eco-friendly vehicles and premium home appliances.

POSCO Group aims to complete a production system with an annual capacity of 400,000 tons of Hyper NO by 2024 by constructing a second phase plant of the same scale as the first phase at Gwangyang (300,000 tons) and Pohang (100,000 tons).

This amount is sufficient to produce motor cores for approximately 5 million electric vehicles.

Choi Jeong-woo, Chairman of POSCO Group, said in his commemorative speech at the completion ceremony, “POSCO Group has established a foothold to become a leading company in eco-friendly future materials by localizing lithium, a key raw material for secondary battery materials, and expanding the supply of high-efficiency electrical steel sheets, securing a leading position in the global eco-friendly vehicle market and contributing to strengthening national competitiveness.”

POSCO Group has succeeded in localizing the production of lithium hydroxide, which was previously entirely dependent on imports, by developing and applying its own technology to extract lithium from ore raw materials. This will contribute to stabilizing the domestic supply chain for secondary battery material raw materials.

Moreover, since the entire production process?from raw material procurement (Australia) to processing (South Korea)?is conducted within countries that have signed FTAs with the United States, benefits from the Inflation Reduction Act (IRA) can also be expected.

Along with this, the expansion of the Hyper NO plant has alleviated supply shortage concerns for domestic eco-friendly vehicle-related customers, contributing to the competitiveness of the national industry.

Going forward, POSCO Group plans to actively respond to the full-scale arrival of the global electric vehicle market by establishing an annual production system of 1 million tons of electrical steel sheets by 2030, including considering the construction of a new electrical steel sheet plant in North America.

Since the launch of its holding company in March last year, POSCO Group has been strengthening its steel and secondary battery materials business sectors to complete a core material portfolio for the eco-friendly mobility industry.

In particular, to improve the driving range of eco-friendly vehicles, enhancing cathode material performance, increasing motor efficiency, and vehicle lightweighting are important. POSCO Group is the only company in the world that produces high-capacity secondary battery material lithium hydroxide for high-nickel cathode materials, Hyper NO that drastically improves motor efficiency by reducing energy loss, and Giga Steel, an ultra-high-strength lightweight steel sheet.

Starting with the completion of the POSCO Pilbara Lithium Solutions lithium hydroxide plant, POSCO Group plans to expand its ore lithium production capacity to 220,000 tons.

Additionally, beginning next year, the group plans to sequentially complete lithium plants phases 1 and 2 based on Argentina's brine resources, establishing a four-phase brine lithium production system with a capacity of 100,000 tons.

Furthermore, POSCO Group plans to continuously expand global lithium production capacity by developing unconventional lithium resources such as clay lithium and oilfield brine lithium in the North American region, aiming to secure a lithium production capacity of 423,000 tons by 2030.

Asia Economy Honam Reporting Headquarters, Reporter Heo Seon-sik hss79@asiae.co.kr