Yulchon Industrial Complex, South Korea – Posco Group, a leading South Korean steelmaker, has completed the construction of its second lithium hydroxide plant, marking a significant step towards securing a stable supply of this critical battery material. The plant, operated by Posco Pilbara Lithium Solution, is located in Yulchon Industrial Complex and has an annual production capacity of 43,000 tons.
The completion of the second plant, just a year after the first, brings Posco Group's total lithium production capacity to 43,000 tons, enough to supply batteries for approximately 1 million electric vehicles. Posco Pilbara Lithium Solution, a joint venture between Posco Holdings and Australian mining company Pilbara Minerals, has been producing lithium hydroxide using imported Australian lithium ore since its establishment in 2021.
The grand opening ceremony was attended by high-ranking officials, including South Korean Prime Minister Han Duck-soo, Jeollanam-do Governor Kim Young-rok, and representatives from global battery companies.
Key Highlights:
Enhanced Lithium Production Capacity: The completion of the second plant significantly boosts Posco Group's lithium production capacity, solidifying its position in the global battery materials market.
Diversified Technology: The first plant utilizes Posco Group's proprietary lithium extraction technology, while the second plant employs a commercially proven technology from other global companies.
Secure Supply Chain: By using Australian lithium ore and manufacturing in South Korea, the company ensures a stable supply chain and minimizes geopolitical risks.
Strategic Partnerships: Posco Pilbara Lithium Solution has secured long-term supply contracts with major battery manufacturers, including Posco Future M and SK On.
Focus on Innovation: The company is committed to developing innovative technologies and expanding its product portfolio to meet the growing demand for high-performance batteries.
Quotes from Key Figures:
Prime Minister Han Duck-soo: "The completion of this lithium plant marks a significant turning point for Posco Group as it becomes a global leader in the lithium industry. The government will continue to provide full support to battery companies through infrastructure, R&D, tax benefits, and finance."
Jeff Robinson, Australian Ambassador to Korea: "This completion is a testament to the long-standing trust and cooperation between Korea and Australia, and a major milestone in the joint development of the battery materials business in both countries."
Jang In-hwa, Chairman of Posco Group: "Posco Group has secured a stable supply of lithium, a key mineral for battery materials, amid changing global regulatory environments. We will continue to grow as a top global lithium company."
Looking Ahead
With the completion of the second lithium plant and the establishment of strategic partnerships, Posco Group is well-positioned to become a major player in the global battery materials market. The company is committed to further expanding its production capacity and developing innovative technologies to meet the growing demand for electric vehicles and energy storage solutions.
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