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| POSCO Chairman Choi Jeong-woo, third from left, South Jeolla Province Governor Kim Yung-rok, fourth from left, and other dignitaries join the groundbreaking ceremony of the steelmaker’s plant in Gwangyang, South Jeolla Province, Wednesday. The plant will be built by 2023, with an annual production capacity of 43,000 tons of lithium hydroxide, a key material for the production of electric vehicle (EV) batteries. Courtesy of POSCO |
By Yi Whan-woo
POSCO has begun construction on a plant to carry out lithium hydroxide extraction, a key material for the production of electric vehicle (EV) batteries, in Gwangyang, South Jeolla Province.
The country’s top steelmaker said Wednesday the groundbreaking ceremony took place at the southern industrial city in the presence of 50 dignitaries.
Among them were POSCO Chairman Choi Jeong-woo, South Jeolla Province Governor Kim Yung-rok, Gwangyang Vice Mayor Kim Kyung-ho and POSCO Chemical CEO Min Kyung-zoon.
The 1,960-square-meter plant will be able to produce 43,000 tons of lithium hydroxide annually once it is constructed by the end of 2023. The amount is enough to make batteries for around 1 million EVs.
Lithium hydroxide is required for the production of lithium-ion battery cathodes ― the component of a battery from which stored electricity flows out to a connected device.
“We have been able to take a step toward producing lithium by making active investments and innovating technologies, after selecting storage batteries as our next growth engine in the forthcoming era of EVs,” Chairman Choi said in a speech.
He regarded self-sufficiency in lithium production as “a cornerstone to build a century-long POSCO” and that such efforts can help the domestic battery industry compete in the global market.
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| POSCO’s Seoul headquarters / Korea Times file |
Domestic material manufacturers such as POSCO Chemical and EcoPro BM have so far relied on imports from the United States, China and South America to supply nearly 99.9 percent of its lithium requirements.
On the other hand, Chinese battery makers, including world leader CATL, source lithium from local suppliers.
Accordingly, POSCO’s board in April approved the Gwangyang construction plan, by using Australia-imported spodumene from which lithium hydroxide will be extracted.
The steelmaker has separately planned to build a plant at the Salar del Hombre Muerto salt lake in northern Argentina.
The firm bought lithium mining rights in the Argentinean region in 2018 from Australian miner Galaxy Resources for $280 million.
The site is confirmed to contain 13.5 million tons of lithium reserves, which is enough to make batteries for about 370 million electric cars, according to POSCO.
POSCO pushes to enhance manufacturing capabilities of storage battery materials, create a value chain of cathode and anode components as well as raw battery materials such as lithium, nickel and graphite, and ultimately become an all-round player in customized steel for EVs, EV motors and secondary battery-related businesses.
In January, the company launched “eAutopos,” a brand to be used collectively by the company as well as its affiliates for products and services related to EVs and other eco-friendly cars.
They include hyper non-oriented electrical steel and protective battery housing, both produced by POSCO, POSCO Chemical’s cathode and anode materials, motor core and fuel-cell bipolar plates produced by POSCO SPS, a subsidiary of POSCO’s trade arm POSCO International.
POSCO seeks to generate a supply of 220,000 tons of lithium and 100,000 tons of nickel by 2030. This will make it possible for the firm to produce 260,000 tons of cathodes and 400,000 tons of anodes annually.
These goals are indicative of the conglomerate’s shift from a steel-oriented business model as it seeks to adapt to global industrial trends characterized by low-carbon and eco-friendly business practices.
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