POSCO Holdings will construct a demonstration facility in Utah to test its lithium extraction technology, marking the first time a South Korean company has attempted direct lithium production in North America as competition intensifies for battery materials supply chains.
The Seoul-based steelmaker signed a non-binding agreement with Brisbane-based Anson Resources to build the plant at the Green River project in Utah’s Paradox Basin. Construction is expected to begin in 2026, with POSCO making its final investment decision by December 2025.
POSCO will evaluate its proprietary direct lithium extraction technology, which was initially developed in 2016. The method promises faster processing than traditional evaporation techniques, though the company has yet to prove commercial viability at scale in challenging brine conditions.
POSCO Holdings can produce 68,000 tons of lithium hydroxide per year from its two lithium plants – enough for about 1.6 million electric vehicles. The company operates a 25,000-ton facility in Argentina, acquired in 2018 for $280 million, and a 43,000-ton plant in South Korea.
The direct lithium extraction market is projected to grow at 19.6% annually through 2035, though high capital costs and site-specific optimization challenges remain significant hurdles. The demonstration project represents POSCO’s attempt to diversify beyond China-dominated lithium supply chains while the electric vehicle market faces continued uncertainty.
