POSCO Holdings has inaugurated its second lithium brine plant in Argentina, establishing a production system for lithium hydroxide after acquiring the Ombre Muerto salt flat mining rights eight years ago.
On October 6, POSCO Holdings held a ceremony to mark the completion of the plant, located at an altitude of 4,000 meters near the Ombre Muerto salt flat.
Chairman Jang In-hwa expressed his deep emotions at the ceremony, stating, "Since my time as head of new business in 2014, I have visited various sites to find suitable salt flats for lithium development. Overcoming numerous challenges in this extreme environment has led us to this moment of completion. This marks a significant step for POSCO Group as a leading resource development company representing South Korea."
He added, "We will continue to secure competitive resources and connect them to production and profits, ensuring a stable supply of essential minerals for the national industry."
The completion of this plant expands POSCO Group's commercial lithium production capacity in Argentina. It will also be linked to a lithium production facility currently under construction in the Yulchon Industrial Complex in South Jeolla Province.
The second plant, which required an investment of $954 million, has an annual production capacity of 23,000 tons of lithium carbonate. Combined with the existing first plant's capacity of 25,000 tons, the total commercial production capacity in Argentina now stands at 48,000 tons.
The lithium carbonate produced at the second plant will be connected to the downstream facility in Yulchon, expected to be completed in 2027, which will convert it into 25,000 tons of battery-grade lithium hydroxide, establishing a total production system of 50,000 tons of brine-based lithium hydroxide.
POSCO Group began developing its proprietary lithium extraction technology in 2010 and acquired the Ombre Muerto salt flat in Argentina in 2018. The first plant, with a capacity of 25,000 tons, is set to commence commercial production in 2024.
The lithium project in Argentina has received policy support from both the South Korean and Argentine governments. POSCO Argentina secured approval for the RIGI program, a large-scale investment incentive from the Argentine government, ahead of the South Korea-Argentina summit in July, which includes benefits such as corporate tax reductions and customs exemptions.
In August, it also received approval for a $700 million short-term borrowing limit from the Inter-American Investment Corporation, establishing a foundation for operational funding.
POSCO Holdings is pushing for the early normal operation of the newly completed second plant while planning investments in the third and fourth plants to establish a production system for 100,000 tons of lithium brine by 2033. Each of these plants is expected to have a production capacity of 25,000 tons of lithium carbonate.
The company plans to establish a system that produces both lithium hydroxide and lithium carbonate in response to the growing energy storage system (ESS) market and increasing demand for lithium iron phosphate (LFP) batteries due to the expansion of AI data centers.
On the day of the inauguration, POSCO Argentina signed a memorandum of understanding (MOU) with the provincial governments of Salta and Catamarca to promote the third and fourth plants. The provincial governments agreed to cooperate on administrative support and permits necessary for future project advancement.
During this visit, Chairman Jang confirmed the production facilities and completion status of the second plant and reviewed plans for the third and fourth plants along with cooperation tasks with local governments.
POSCO Group aims to stabilize the supply chain of essential minerals by expanding its business from resource acquisition to development and production, based on its 'Triple-Core' strategy focusing on industrial resources, strategic resources, and energy resources.
* This article has been translated by AI.
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