POSCO Group expanded its battery materials production with a new 43,000-ton lithium hydroxide plant in South Korea’s industrial hub of Gwangyang, racing to meet surging global demand for electric-vehicle components.
The facility, operated by POSCO Pilbara Lithium Solution, marks the company’s second lithium hydroxide plant completion within a year. The joint venture with Australia’s Pilbara Minerals processes Australian raw materials, aiming to sidestep geopolitical supply chain risks.
South Korean Prime Minister Han Duck-soo said at the opening ceremony that the government plans to support the battery industry through infrastructure development and tax incentives. The plant’s output could supply materials for about 1 million electric vehicles.
POSCO Pilbara recently secured its first major supply agreement, planning to deliver up to 10,000 tons to battery maker SK On over three years. The company will also supply up to 30,000 tons annually to POSCO Future M.
The latest addition brings POSCO Group’s total annual lithium hydroxide capacity to 68,000 tons, including 25,000 tons from its Argentina brine project. POSCO Holdings controls 82% of the venture, with Pilbara Minerals holding the remainder.
