POSCO Philbar Lithium Solutions to Complete Second 21,500-ton Annual Capacity Lithium Hydroxide Plant in Gwangyang on the 29th
Exterior view of the second ore-based lithium hydroxide plant completed by POSCO Philbar Lithium Solutions in the Yeulchon Industrial Complex, Jeonnam. Photo by POSCO Holdings
POSCO Group has established an annual production system of 43,000 tons of lithium hydroxide for electric vehicle secondary batteries in South Korea.
POSCO Pilbara Lithium Solution, a subsidiary of POSCO Group, completed the construction of its second lithium hydroxide plant based on ore at the Yulchon Industrial Complex in Jeonnam on the 29th. One year after completing the first plant in November last year (annual capacity of 21,500 tons), the second plant (annual capacity of 21,500 tons) was completed, establishing a total lithium production system with an annual capacity of 43,000 tons. This capacity is enough to produce about 1 million electric vehicles. The completion ceremony was attended by Prime Minister Han Duck-soo, Jeonnam Governor Kim Young-rok, Korea Development Bank Chairman Kang Seok-hoon, POSCO Group Chairman Jang In-hwa, and Australian Ambassador to Korea Jeff Robinson, among others.
POSCO Pilbara Lithium Solution was established in 2021 as a joint venture between POSCO Holdings and the Australian mining company Pilbara Minerals. It imports Australian lithium ore to South Korea and produces lithium hydroxide for secondary battery materials.
In 2018, POSCO Holdings invested 4.75% equity in Pilbara Minerals and signed a 20-year contract to supply lithium ore mined from Pilgangoora mine owned by Pilbara Minerals, securing a stable raw material supply chain. Additionally, the two companies built a long-term partnership by investing 82% and 18% equity in POSCO Pilbara Lithium Solution by POSCO Holdings and Pilbara Minerals, respectively.
POSCO Pilbara Lithium Solution applied POSCO Group’s independently developed lithium extraction technology in the first plant completed last November, and commercial lithium extraction technology operated by other overseas companies in the second plant. POSCO Group’s proprietary lithium extraction technology, which utilizes the principle of electrodialysis, allows recovery and reuse of by-products during production and generates fewer by-products. The commercial lithium extraction technology is widely used by leading lithium companies in Australia, China, and other countries, offering the advantage of being a proven technology. POSCO Group plans to operate both plants and strengthen the technical foundation to flexibly expand the business according to future changes in the business environment.
Moreover, since the lithium hydroxide produced by POSCO Pilbara Lithium Solution uses Australian raw materials and is processed in South Korea, the entire production process occurs within countries that have free trade agreements with the United States, making it free from geopolitical risks. This facilitates market development domestically and internationally without being affected by regulatory changes on secondary battery material raw materials in the US, EU, and other regions, leading to successful supply contract signings from the early stages of operation.
POSCO Pilbara Lithium Solution plans to supply lithium hydroxide starting at 20,000 tons annually, up to a maximum of 30,000 tons, to POSCO Future M, which produces cathode materials within the group. On the 22nd of this month, it signed its first long-term contract with SK On to supply up to 15,000 tons over three years.
Prime Minister Han Duck-soo said, "The completion of this lithium plant will be a groundbreaking turning point for POSCO Group to leap forward as a global leader in the lithium industry," adding, "The government will also spare no effort to fully support secondary battery companies in infrastructure, R&D, taxation, and finance."
Chairman Jang In-hwa stated, "POSCO Group has opened the path of material patriotism in the secondary battery material sector by stably supplying lithium, a core mineral for secondary battery materials, domestically amid global regulatory environment changes, following its leadership in steel," and added, "We will grow into a global leading lithium company."
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