April 26, 2024

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[THE INVESTOR] Posco, the world’s fourth-largest steelmaker, will start producing lithium for commercial use for the first time in South Korea, the company said on Feb.7.

The company has completed construction of a lithium extraction plant at its complex in Gwangyang, South Jeolla Province. The plant is capable of producing 2,500 tons of lithium, it added.

 

Posco Chairman Kwon Oh-joon shows lithium carbonate, a base material for rechargeable batteries, that was produced at a newly built lithium extraction plant in Gwangyang, South Jeolla Province, Feb. 7. Posco

With the completion of the plant, Posco will be able to supply lithium carbonate to battery makers LG Chem and Samsung SDI and to its affiliate Posco ESM, a local maker of anodes for rechargeable batteries. Korean battery makers have been relying on imported lithium so far. Posco supplying the material directly to battery makers will stabilize the supply chain, a government official said at the plant completion ceremony.

The steelmaker spent seven years to develop the eco-friendly lithium extraction technology.

The high-efficiency lithium extraction technology cuts recovery time from around 12 months to just eight hours. It also requires less space than the traditional evaporation technique. 

The lithium extraction development has been led by Posco Chairman Kwon Oh-joon, an in-house researcher turned CEO. Assuming his second term last month, Kwon said he would seek Posco’s growth from non-steel segments such as development of advanced materials, construction and energy projects.

Market demand for lithium has grown at a fast pace, along with the popularity of mobile devices and electric vehicles around the world.

The annual market demand for lithium carbonate, a base material for rechargeable batteries, has surged from 6,000 tons to 66,000 tons in 2015. The size is expected to grow more than 180,000 tons in 2025, considering the growth of EV and energy storage system markets.

By Cho Chung-un/The Korea Herald (christory@heraldcorp.com)