Set to complete 50,000-ton lithium hydroxide production system in 2027 by linking with Yulchon downstream process; pursuing lithium carbonate production for ESS and LFP batteries at Plants 3 and 4

CHANG In Hwa, CEO of POSCO HOLDINGS, personally oversees operations in Argentina to execute Triple-Core strategy: “Leaping forward as Korea’s leading resource development company to contribute to supply chain stability”

POSCO HOLDINGS has completed the upstream process of its second brine lithium plant in Argentina, laying the foundation for a lithium hydroxide production system with an annual capacity of 50,000 tons eight years after acquiring the mining lease for the Hombre Muerto salt lake in 2018.

POSCO HOLDINGS held a completion ceremony for the upstream process of its second brine lithium plant on October 6 (local time) near the Hombre Muerto salt lake, located 4,000 meters above sea level. The event was attended by CHANG In Hwa, CEO of POSCO HOLDINGS; PARK Hyun, President of POSCO-Argentina; Karina Milei, Secretary General of the Presidency; Diego Santilli, Chief of the Cabinet of Ministers; Gustavo Saenz, Governor of Salta Province; Raul Jalil, Governor of Catamarca Province; and LEE Jong Hwa, South Korean Ambassador to Argentina.

At the completion ceremony, CHANG In Hwa, CEO of POSCO HOLDINGS, said, “Since 2014, when I was head of the New Business Office, I have personally visited sites in search of salt lakes suitable for lithium development. I am deeply moved that we have overcome numerous challenges in such an extreme environment, 4,000 meters above sea level, to reach today’s completion.” He added, “With this completion, POSCO group has taken another step toward becoming Korea’s leading resource development company.” He further emphasized, “We will continue to proactively secure competitive resources, turn them into production and profit, and ensure a stable supply of the critical minerals essential to the nation’s industries.”

This completion is significant in that POSCO group, having proactively secured lithium resources, has further expanded its commercial production base. In addition, as it will be linked to the lithium production plant under construction in the Yulchon Industrial Complex in Jeollanam-do, it is expected to help revitalize Korea’s rechargeable battery industry.

The Plant 2 upstream facility, which POSCO HOLDINGS completed with a total investment of $954 million, has an annual production capacity of 23,000 tons of lithium carbonate. Combined with Plant 1’s existing capacity of 25,000 tons, the company’s total commercial production capacity in Argentina has now expanded to 48,000 tons.

Furthermore, once the lithium carbonate produced at the Plant 2 upstream facility is converted into 25,000 tons of battery-grade lithium hydroxide per year through the downstream process scheduled for completion at the Yulchon Industrial Complex in Jeollanam-do in 2027, the company will complete a brine-based lithium hydroxide production system with a total capacity of 50,000 tons.

Recognizing the growth potential of lithium, POSCO group began developing its own lithium extraction technology in 2010 and has continued to make proactive investments, including the acquisition of the Hombre Muerto salt lake in Argentina in 2018. These efforts paid off in 2024, when the company completed Plant 1 with an annual production capacity of 25,000 tons and began commercial production.

POSCO group’s resource development capabilities are backed by policy support from both the South Korean and Argentine governments. Ahead of the South Korea-Argentina summit held in July, POSCO-Argentina, POSCO group’s lithium business entity in Argentina, became the first South Korean company to obtain approval under RIGI (Régimen de Incentivo para Grandes Inversiones), the Argentine government’s incentive regime for large investments, securing benefits such as corporate tax cuts and tariff exemptions. In August, it also secured approval for a $700 million short-term credit facility from IDB Invest (Inter-American Investment Corporation), establishing a stable foundation for funding its operations.

POSCO HOLDINGS will work to bring the newly completed Plant 2 to normal operation at an early date and accelerate new investments in Plants 3 and 4 to complete a 100,000-ton brine lithium production system by 2033. Plants 3 and 4 will each have an annual lithium carbonate production capacity of 25,000 tons, enabling the company to respond to the growth of the energy storage system (ESS) market driven by the expansion of AI data centers and to rising demand for lithium iron phosphate (LFP) batteries. Through this, the company aims to complete a balanced product portfolio encompassing both lithium hydroxide and lithium carbonate.

On the day of the completion ceremony, POSCO-Argentina signed a memorandum of understanding (MOU) with the provincial governments of Salta and Catamarca to advance Plants 3 and 4. Both provincial governments agreed to cooperate on the administrative support and permits needed to move the project forward.

During the visit, CEO CHANG personally inspected Plant 2’s production facilities and completion status and reviewed plans for Plants 3 and 4 as well as areas of cooperation with the local governments, lending momentum to the expansion of the Argentina lithium business.

Under its “Triple-Core” strategy, which fosters industrial resources, strategic resources, and energy resources as the group’s core growth pillars, POSCO group aims to strengthen its business competitiveness across the value chain, from resource acquisition to development, production, and revenue generation, thereby leaping forward as Korea’s leading resource development company and contributing to the stabilization of the nation’s critical mineral supply chain.

▲ Participants pose for a commemorative photo at the completion ceremony for the upstream process of POSCO-Argentina’s second brine lithium plant on October 6 (local time). From left: BANG Seok Ju, Head of Plant Business Division at POSCO E&C; Flavia Royon, Chair of the Senate Mining, Energy, and Fuel Committee of Argentina; Fernanda Avila, Chair of the Chamber of Deputies Mining Committee; KIM Ki Soo, Head of POSCO N.EX.T Hub; LEE Jong Hwa, South Korean Ambassador to Argentina; Karina Milei, Secretary General of the Presidency; CHANG In Hwa, CEO of POSCO HOLDINGS; Diego Santilli, Chief of the Cabinet of Ministers; Gustavo Saenz, Governor of Salta Province; Raul Jalil, Governor of Catamarca Province; PARK Hyun, President of POSCO-Argentina; and Sergio Lew, Chief Industries Officer at IDB Invest.

▲ POSCO-Argentina, POSCO HOLDINGS’ lithium production subsidiary, held a completion ceremony for the upstream process of its second brine lithium plant on October 6 (local time) and signed an MOU with the provincial governments of Salta and Catamarca to advance Plants 3 and 4.