Korea National Oil Corporation and POSCO Holdings Sign MOU for Lithium Development Technology and CCUS Research Collaboration in Canada

Utilizing Formation Water from Oil and Gas Fields... Expected to Secure Core Mineral Development Technologies Including Lithium

Korea National Oil Corporation (KNOC) signed a Memorandum of Understanding (MOU) on the 17th at the Embassy of Canada in Korea with POSCO Holdings Future Technology Research Institute to collaborate on the development of key mineral extraction technologies, including lithium, using formation water from Canadian oil and gas fields, as well as CCUS technology research.

Im Geon-muk (left in the photo), Head of E&P Energy Business Division at Korea National Oil Corporation, and Kim Ki-su, Head of Future Technology Institute at POSCO Holdings, are posing for a commemorative photo after signing a memorandum of understanding on lithium development technology and CCUS technology research in Canada.

The signing ceremony was attended by KNOC President Kim Dong-seop, POSCO Holdings Future Technology Research Institute Director Kim Ki-su, Tamara Mohini, Canadian Ambassador to Korea, Victor Lee, Korean Representative of the Alberta Government in Canada, and other key Canadian officials.

This MOU was established to mutually cooperate in developing technology to extract key minerals, including lithium, from formation water (underground water contained in geological formations) in oil and gas fields owned by KNOC in Alberta, Canada, based on the technological capabilities of both companies.

Typically, formation water surrounding strata containing oil or gas contains minerals such as lithium. In particular, Alberta, Canada, is known to have one of the world's largest lithium reserves in formation water, and many companies are planning and promoting commercialization projects to develop and produce lithium from formation water in depleted oil fields.

Going forward, both parties plan to review the potential for lithium and other mineral content in formation water in KNOC’s oil and gas fields in Alberta, conduct economic feasibility assessments, and mutually cooperate in technology research for mineral extraction to lay the foundation for commercialization. In this process, KNOC will provide existing oil production facilities and use its accumulated oil exploration and development expertise to identify areas with high lithium content.

With South Korea’s lithium dependence on China at around 70%, the active promotion of lithium development in Canada using formation water is expected to greatly contribute to securing critical minerals through supply chain diversification.

Additionally, through this MOU, KNOC will establish a foundation to advance overseas CCUS projects with POSCO Holdings, following the Malaysia Shepherd CCS project and the CCS demonstration project with Indonesia’s state-owned oil company (Pertamina), thereby expanding its overseas CCS business.

KNOC President Kim Dong-seop said, “I hope that through this technology research collaboration, the technological strengths and experiences of both companies will be actively shared to create synergy and lay the groundwork for successful project implementation.”