[Exclusive] POSCO, LX Inter, and Other Korean Companies Join Forces... 'Team Korea' in Chile Lithium Bidding

Gwanghae Mining Corporation and Public-Private Joint Task Force
Reopening of Korea-Chile Resource Cooperation Committee after 12 Years
Visit by Minister of Mining and VIP Reception Hosted by Investment Agency

Domestic companies such as POSCO Holdings and LX International will visit Chile next month as part of a public-private joint business investigation team. This is a preliminary move following Chile's decision, which holds the world's largest lithium reserves, to allocate some development rights to foreign companies. It is understood that dozens of global companies, including domestic firms like POSCO Holdings and LG Energy Solution, have submitted Requests For Information (RFI) to participate in lithium development projects.

According to industry sources on the 29th, POSCO Holdings, POSCO E&C, LX International, LS MnM, and Hyosung Heavy Industries will visit Chile from the 13th to the 19th of next month for a 3-night, 7-day schedule. They will be accompanied by the Ministry of Trade, Industry and Energy, Korea Mine Reclamation Corporation, Korea Institute of Geoscience and Mineral Resources, Korea Institute of Energy Technology Evaluation and Planning, Battery Industry Association, and the Korean Embassy in Chile. This is a public-private joint core minerals business investigation team organized by the Ministry of Trade, Industry and Energy to secure lithium, a key raw material for batteries. This will be the second visit to Chile by the investigation team following last year.

The public and private sectors formed the investigation team because Chile opened business rights to foreign companies as it launched 26 new lithium salar projects this year. Up to five new operators are planned to be selected. Currently, the only companies authorized by the Chilean government to produce lithium are Chile's SQM and the US-based Albemarle. China’s Tianqi Lithium is the second-largest shareholder of SQM. The Chilean Ministry of Economy, Development and Tourism and the Ministry of Mining began accepting letters of intent for participation in lithium exploration and production from the 15th (local time) and will continue to do so for 60 days.

Atacama Salt Flat Lithium Project in Chile
[Image Source=Reuters·Yonhap News]

In April last year, Chile declared resource nationalization, requiring private companies to cooperate with state-owned enterprises to develop lithium. Our government has engaged in behind-the-scenes efforts, including establishing networks with Chilean state-owned companies. Our investigation team will meet with the Chilean Minister of Mining and participate in the Korea-Chile Core Minerals Cooperation Business Roundtable, Chile’s largest investment conference ‘Invest Chile Forum,’ and a VIP reception hosted by the Chilean Investment Agency.

For the first time in 12 years, the ‘5th Korea-Chile Resource Cooperation Committee’ will be held at the Ministry of Mining building. Attendees will include the Chilean Deputy Minister of Mining, Chilean Copper Corporation, Chilean Copper Commission, and Chilean Mining Geology Institute, while six related Korean institutions from the investigation team will participate. An industry official said, "Following the Korea-Chile summit at the Asia-Pacific Economic Cooperation (APEC) Leaders’ Meeting last November, the Korea-Chile Resource Cooperation Committee, which had been suspended since 2012, is being resumed to revitalize core mineral cooperation between the two governments."

The team will also inspect a pilot plant for Direct Lithium Extraction (DLE). This is the ‘Summit Nanotech Chile SPA Technology Center,’ established by Canada’s Summit Nanotech to apply its DLE technology to Chilean salars. The extraction cost is low, and lithium extraction time can be reduced from about 18 months to a single day. Since no solid waste is generated, the environmental impact is minimal. Earlier, Chilean President Gabriel Boric announced the national lithium strategy, aiming to apply DLE technology that minimizes environmental impact.

POSCO Holdings and LG Energy Solution have submitted Requests For Information to the Chilean Copper Corporation regarding the DLE development project at Salares Altoandinos in northern Atacama, Chile. A total of over 30 global companies, including the Japanese Toray consortium, French Eramet, Chinese Sunrejin, and Canadian Summit Nanotech, as well as companies from the US, Germany, Israel, Russia, Australia, the UK, and New Zealand, are participating.