Posco Holdings Completes Second Lithium Plant in Argentina... Jang Inhwa Vows Stable Supply of Key Minerals

Combined annual production capacity of 48,000 tons at Plants No. 1 and 2
50,000-ton lithium hydroxide system to be established by 2027
Further investment in Plants No. 3 and 4 to address ESS and LFP demand

With the completion of the upstream process at its second brine lithium plant in Argentina, POSCO Holdings has secured the foundation for establishing an annual production system for 50,000 tons of lithium hydroxide. The milestone comes eight years after it acquired mining rights to the Hombre Muerto salt flat in 2018.

On the 6th (local time), participants posed for a commemorative photo at the completion ceremony of the upstream process at POSCO Argentina Brine Lithium Plant No. 2. From the left: Seokju Bang, Head of POSCO E&C Plant Business Division; Flavia Royo, Chairwoman of the Senate Committee on Mining, Energy and Fuels of Argentina; Fernanda Avila, Chairwoman of the Chamber of Deputies Mining Committee; Kisu Kim, Head of Future Technology Research Institute at POSCO Holdings; Jonghwa Lee, Ambassador of the Republic of Korea to Argentina; Karina Millei, Secretary General of the Presidential Office; Inhwa Jang, Chairman of POSCO Group; Diego Santilli, Chief Federal Minister; Gustavo Saenz, Governor of Salta Province; Raul Halil, Governor of Catamarca Province; Hyun Park, Head of POSCO Argentina Corporation; Sergio Reu, Head of the Industrial Sector at IDB Invest. POSCO Holdings.

POSCO Holdings announced on October 7 that it held a ceremony on October 6 (local time) to mark completion of the upstream process at its second brine lithium plant near the Hombre Muerto salt flat in Argentina. Attendees included Jang Inhwa, chairman of POSCO Group; Park Hyun, head of POSCO Argentina; and officials from the Argentine national and provincial governments.

The upstream process at the second plant, which involved an investment of $954 million, has an annual lithium carbonate production capacity of 23,000 tons. Combined with the first plant's annual capacity of 25,000 tons, POSCO Group's lithium production capacity in Argentina will rise to 48,000 tons a year.

Lithium carbonate produced at the second plant will be sent to a downstream facility scheduled for completion in 2027 at the Yulchon Industrial Complex in Jeollanam-do, where it will be converted into battery-grade lithium hydroxide. The Yulchon downstream facility will have an annual production capacity of 25,000 tons. POSCO Group plans to combine this with output from the first plant to establish a brine-based lithium hydroxide production system with an annual capacity of 50,000 tons.

POSCO Group began developing its own lithium extraction technology in 2010, recognizing lithium's growth potential, and acquired the Hombre Muerto salt flat in Argentina in 2018. In 2024, it completed its first plant, with an annual capacity of 25,000 tons, and began commercial production.

Alongside bringing the second plant into full operation ahead of schedule, POSCO Holdings is pursuing investment in the third and fourth plants, aiming to establish an annual brine lithium production capacity of 100,000 tons by 2033. Each of the third and fourth plants will have an annual lithium carbonate production capacity of 25,000 tons. They are intended to meet growing demand in the energy storage system (ESS) market as AI data centers expand, as well as increased demand for lithium iron phosphate (LFP) batteries.

On the day of the completion ceremony, POSCO Argentina signed a memorandum of understanding (MOU) with the governments of Salta and Catamarca provinces to advance the third and fourth plants. The two provincial governments agreed to cooperate in providing administrative support, including the permits and approvals needed to move the projects forward.

During his visit, Chairman Jang inspected the second plant's production facilities and completion status, and reviewed plans for the third and fourth plants and areas for cooperation with the local government. "With this completion, POSCO Group has taken another step toward becoming a leading resource development company representing the Republic of Korea," he said. "We will proactively secure competitive resources, turn them into production and revenue, and ensure a stable supply of critical minerals needed by the country's industries."

This content was produced with the assistance of AI translation services.