On November 2, a visit to Gwangyang in South Jeolla Province evoked images of the film 'Charlie and the Chocolate Factory.' The city is dotted with production facilities of the POSCO Group, resembling a vast 'POSCO village.' From the electric furnace at Gwangyang Steelworks to the liquefied natural gas (LNG) terminal operated by POSCO International, the rare gas plant by POSCO Air Solution, the cathode material factory of POSCO Future M, the lithium refining plant of POSCO Pilbara Lithium Solutions, and the battery recycling facility of POSCO HY Clean Metal, the future of POSCO Group's expansion into materials and energy was clearly on display.
The Gwangyang LNG terminal, which stores LNG at minus 162 degrees Celsius, is impressive in size. Towering cylindrical storage tanks, approximately 55 meters high, line the waterfront.
Seok Gi-sik, head of the terminal construction team at POSCO International, explained, "The internal diameter of the storage tanks is about 84 meters. They are designed for a lifespan of 40 years to store LNG in liquid form at minus 162 degrees for extended periods." The total storage capacity of the Gwangyang LNG terminal is 1.33 million cubic meters, the largest for a single private company in South Korea, enough to supply heating gas for the entire population for about 40 days.
At the newly established unloading dock, long docking facilities and LNG transfer pipelines were visible. A site official noted that when LNG at minus 162 degrees flows through the pipes, surrounding moisture freezes, creating a winter-like scene even in summer. Passing by the pipes felt like stepping into winter.
Just a short drive from the LNG terminal, several long tanks came into view. These are used by POSCO Air Solution to produce rare gases essential for the semiconductor and aerospace industries. The company utilizes gases obtained from the oxygen production process at Gwangyang Steelworks as raw materials, separating rare gas components and removing impurities to create high-purity products.
This facility has an annual production capacity of 130,000 normal cubic meters, which the company estimates will meet about 52% of domestic demand for rare gases.
The following day, a visit to the Gwangyang Yulchon Industrial Complex revealed a concentration of battery material production sites.
The POSCO Future M Gwangyang cathode material plant, with a production capacity of 90,000 tons per year, employs automation technology in its manufacturing and quality inspection processes. The quality analysis lab is equipped with automated systems for measuring particle size and residual lithium content, as well as X-ray analysis equipment and electron microscopes.
The cathode materials, baked in a kiln, resembled slightly burnt brownies. The plant operates using a 'top-down' method, where precursors and lithium are mixed on the upper floor and sent down to the kiln below. The noise from the machinery was incessant, creating a bustling atmosphere.
Next, at POSCO Pilbara Lithium Solutions, lithium hydroxide, a key raw material for cathode materials, was being produced. Upon entering the raw material warehouse, a massive pile of sand came into view.
This was spodumene concentrate imported from Australia. Unlike typical ores that come to mind, it resembled finely ground white sand.
Son Hong-rok, head of the technology and quality department at POSCO Pilbara Lithium Solutions, explained, "We import spodumene ore mined from Australian mines, which is then crushed and sorted for lithium content." The secured ore undergoes heat treatment at around 1,000 degrees before being mixed with sulfuric acid. Water is then used to extract lithium components into a solution while removing impurities. This process extracts essential battery materials from what appears to be a simple pile of sand.
The plant employs two different production technologies. The first line uses an electric dialysis method developed by POSCO, applying electricity to an ion exchange membrane to separate lithium. The second line produces lithium hydroxide through a chemical reaction using sodium hydroxide. POSCO Pilbara Lithium Solutions can produce 43,000 tons of lithium hydroxide annually.
Son explained the rationale for operating both processes: "The optimal method can vary depending on factors like electricity costs and environmental regulations in different countries." The aim is to compare the advantages and disadvantages of both technologies for future overseas plant construction.
Finally, at POSCO HY Clean Metal, the focus is on recycling, the last link in the supply chain for secondary battery materials. This facility uses black mass obtained from pre-processing waste batteries and scraps generated during battery manufacturing.
The plant is filled with large tanks that trigger chemical reactions and equipment for separating liquids and solids. It undergoes a leaching process using sulfuric acid to dissolve metals, followed by an extraction process to separate individual metals and a crystallization process to produce solid products.
A POSCO Group official stated, "This site visually demonstrates the 'Triple Core' strategy centered on industrial resources, strategic resources, and energy resources, promoted by Chairman Jang In-hwa. We are expanding our business areas into energy and advanced industrial materials by leveraging the technology and production base built on steelmaking."
* This article has been translated by AI.
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