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POSCO Group Achieves Milestone in Lithium Hydroxide Localization and Expands High-Efficiency Steel Production

South Korea
p 005490.KO Blue Chip 150
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On the 29th, POSCO Group announced the successful localization of lithium hydroxide production, marking a significant step in securing key raw materials for the secondary battery material business. The completed lithium hydroxide plant, situated in Gwangyang-si, Jeollanam-do, is part of the joint venture, POSCO Pilbara Lithium Solution, formed with Australian mine development company Philbara Minerals in 2021. This achievement positions POSCO as the first in Korea to commercially produce these essential materials.

The new plant, part of POSCO’s strategic focus on the steel and secondary battery material sectors, addresses concerns about supply chain disruptions in the domestic secondary battery material industry. The lithium hydroxide plant is the first step, with plans for a second plant in the coming year, establishing a total annual capacity of 43,000 tons based on Australian ore lithium. This capacity is sufficient for manufacturing about 1 million electric vehicles, a crucial contribution to the burgeoning electric vehicle market.

Simultaneously, POSCO Group completed the construction of the high-efficiency non-oriented electrical steel Hyper NO plant at Gwangyang Steel Works. This plant, with a first-stage capacity of 150,000 tons per year, aligns with the company’s vision to achieve a total production system capacity of 400,000 tons, enhancing the efficiency of motor cores for electric vehicles.

By strategically expanding its capabilities, POSCO aims to meet the growing global demand for steel in eco-friendly cars and high-end appliances. The Hyper NO plant expansion addresses anticipated global shortages in electrical steel supply, positioning POSCO as a key player in enhancing national industrial competitiveness and supporting the evolving electric vehicle market. Looking forward, the group plans to continue its growth trajectory by establishing new production capacities and actively participating in the global electric vehicle market.

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