1. #Winning – competitiveness and sustainability

POSCO was recently named the world’s most competitive steelmaker for the eighth consecutive year by World Steel Dynamics (WSD). POSCO again took home the gold with the highest scores in five categories including innovative technology, cost reduction, skill level of labor, restructuring and investment environment.

POSCO is the world’s most competitive steelmaker.

Not only did POSCO come out on top for competitiveness, the company was ranked 35th among the “Global 100 Most Sustainable Corporations in the World in 2017,” by Toronto-based magazine and research firm Corporate Knights. The list was announced in early 2017 at the World Economic Forum in Davos, Switzerland. This is the third consecutive year POSCO made the list with outstanding scores in safety, environment and the salary levels of employees.

2. Joining the trillion club

POSCO entered the trillion club twice in 2017 as it recorded USD 1.283 billion (KRW 1.365 trillion) of operating profits in the first quarter, and USD 1.0581 billion (KRW 1.1257 trillion) in the third quarter based on its consolidated operating profit. Even in the midst of global oversupply and governments opting for protectionist policies, POSCO’s profits were unscathed. Much of the credit is owed to the company’s steel and non-steel affiliates overseas with strong sales performances. The consolidated debt-to-equity ratio was the lowest since 2010 and the non-consolidated debt-to-equity ratio was at its lowest ever.

POSCO recorded an operating profit over KRW 1 trillion in the first and third quarter of 2017.

To add, international credit rating agency S&P upgraded POSCO’s BBB-plus credit rating outlook to “stable” last February, and Moody’s also upgraded POSCO’s long-term corporate credit rating outlook to “positive” on October 26.

3. Everything’s bigger in…POSCO

Last June, after 102 days of repair, Pohang Blast Furnace No.3 became the world’s fifth-largest blast furnace. Its internal volume expanded from 4350㎥ to 5600㎥, allowing the super-sized blast furnace to put out 15,000 tons of molten metal daily. POSCO currently operates five super-sized blast furnaces, or blast furnaces sized 5500㎥ or larger.

Pohang Blast Furnace No. 3 under construction.

POSCO further upgraded Pohang Blast Furnace No.3 by adding in AI capabilities. It is now equipped with smart technology that can control the internal state of the blast furnace automatically, and smart sensors can now predict accidents before they happen, extending the lifespan of the furnace. Furthermore, POSCO plans to collect big data from the blast furnace and use it to develop fully smart blast furnaces in the future.

4. The smarter the better

Since his taking up the CEO position in 2014, POSCO CEO Ohjoon Kwon has repeatedly expressed his vision for securing future competitiveness through smart solutions. The company even started a smartization training course for employees and held the Smart POSCO Forum 2017 last July to share its insights and progress with clients and affiliates.

POSCO is gaining a competitive edge through smart solutions. (Source: Global Trade Magazine)

Moreover, POSCO also supported a smart talent training project customized for SMEs. The program included job training for AI and big data application technologies. Going forward, POSCO plans to build a “Smart Industry” to increase steel competitiveness and create new business opportunities with new, smart technologies.

SEE ALSO: How Factories Produce Steel- the Smart Way

5. Getting in on electric vehicles

The market for electric vehicles (EVs) is an exciting one with so many companies investing in new technologies. POSCO also hopes to extend its customized material and technology solutions to EV manufacturers. Last October, the company held the Global EV Materials Forum to showcase four of its core business areas: lightweight bodies, batteries, motors and charging infrastructure. More than 380 clients took part in the forum to learn about emerging trends and POSCO’s products and services including POSCO GIGA STEEL and commercially produced lithium batteries for EVs.

POSCO is a solutions provider for EV manufacturers. (Source: Bloomberg)

6. POSCO’s new marketing approach

For the first time ever, POSCO created and aired a TV commercial highlighting a specific product, instead of its corporate brand. This marks POSCO’s first B2C marketing effort and features the company’s innovative auto steel, POSCO GIGA STEEL. The commercial compares POSCO GIGA STEEL to aluminum, another widely-used lightweight material in a visual demonstration so that everyday drivers can better understand the benefits of a stronger yet lighter material.

7. Going for 10 million tons of automotive steel

On April 26, POSCO completed 7CGL, a new steel production facility in Gwangyang, Korea, designed exclusively for the production of POSCO GIGA STEEL. 7CGL has an annual capacity of 500,000 tons and is the world’s first plant capable of producing both 1.5 giga-level galva-annealed (GA) and galvanized (GI) steel sheets.

POSCO Completed 7CGL on April 26, 2017. (Source: Business Korea)

In addition, POSCO managed to reduce investment funds and secure cost competitiveness by designing and constructing 7CGL’s core facilities based on accumulated facility technologies and operating know-how. The 7CGL is POSCO’s 12th plant exclusively for automotive steel sheets, and POSCO aims to sell 10 million tons of automotive steel in 2018 globally.  

8. Setting new records with high manganese

POSCO became the first company in the world to commercialize the technology for producing high manganese using fusible ferroalloys. The technology took KRW 5.5 billion of research and development costs and four years to complete.

POSCO is the first company in the world to commercialize its high manganese production technology. (Source: Eramet)

The core part of POSCO’s high manganese production process is PosLM (POSCO Liquid Manganese), a special holding furnace that stores manganese ferroalloys in a fusible state. POSCO’s technology reduces the production time for high manganese steel by more than 50 percent as well as increases slab production efficiency. PosLM was jointly researched and developed by the Institute of Technology and POSCO M-tech.

9. Bringing home the lithium

On February 7, POSCO opened its PosLX (POSCO Lithium Extraction) plant with an annual capacity of 2,500 tons. The plant is the first plant in Korea capable of commercial lithium production. The technology took 7 years to perfect, but it was well worth it. The production process for high purity lithium now takes just 3 months, compared to the previous 12 to 18 months.

POSCO is making lithium extraction more efficient and sustainable. (Source: Mining)

In the past, Korean manufacturers imported the entire quantity of lithium they needed. With POSCO’s PosLX plant, partners now have access to a local supply of lithium. Moreover, POSCO plans to use lithium phosphate extracted from wasted secondary batteries as raw materials, in keeping with the company’s sustainability standards.

POSCO will continue building on a successful 2017 in the new year, by tackling new challenges and continuing to provide its partners with customized and optimal solutions in all business areas.

Cover photo courtesy of Hitech Building Solutions.

EVs will make up 54 percent of new car sales in 2040. (Source: Electrek)

Even though EVs make up about 1 percent of total new car sales in the U.S., EVs are on a steady, steep path upwards. According to a report by Bloomberg New Energy Finance, EVs will make up 54 percent of new car sales by 2040, and by 2029, EVs will be cheaper to buy than gasoline and diesel-fueled cars.

The figures are significant and will translate into a sharp increase in demand for rechargeable batteries and their materials.

SEE ALSO: Ask an Expert: Electric Vehicles and the Future of the Automotive Market

The Evolution of EV Batteries

Before diving into the juicy details, it’s always helpful to cover the basics. Batteries are made up of 3 main components. The anode, or negative electrodes, the cathode, or positive electrodes and some type of electrolyte through which the electrodes travel to release chemical energy.

A simple battery can be made out of a potato, copper penny and galvanized nail. (Source: Tested)

The first rechargeable battery, lead-acid battery, was invented in 1859 by a physicist named Gaston Plante. Lead dioxide was the cathode material used, and lead was the anode material with a liquid solution of sulphuric acid and water as the electrolyte. The materials were affordable and the battery was applied to many early models of EVs, including early models of the Tesla Model S.

Another widely used battery that came after the lead-acid battery is the nickel-metal hydride (NiMH) battery developed at the Battelle-Geneva Research Center in 1967. Nickel hydroxide was used as the cathode material while a hydrogen-absorbing alloy was used as the anode material. A liquid solution served as electrolytes. The research for NiMH batteries was extensive, and funded jointly by Daimler-Benz and Volkswagen AG. The batteries were also applied to many EV models such as the Toyota Prius, prior to 2015.

The Advent of Lithium-Ion Batteries

The introduction of lithium-ion batteries was a game-changer. Sony first introduced them in 1991, and today, most EVs have them, including the Tesla Model 3. The batteries consist of lithium-cobalt oxide cathodes, graphite anodes and the electrolyte is usually a solution of lithium salt and an organic solvent, though some automakers are experimenting with solid-state electrolytes.

The Tesla Model 3 has a lithium-ion battery. (Source: Green Car Reports)

Compared to its predecessors, lithium-ion batteries have the highest amount of stored energy and specific power, which is kind of like horsepower for electric cars. As a result of improved technology and lower costs, lithium-ion batteries are projected to make up 70 percent of the total rechargeable battery market by 2025, which will be worth roughly USD 112 billion.

Good as Gold

It is estimated that every 1 percent increase of EVs in the auto market will result in an additional 70,000 tons of lithium demand LCE per year.

In 2016, Australia topped the list for the most lithium produced with 14,300 metric tons. China and Zimbabwe are also top contenders producing 2000 and 900 metric tons in 2016, respectively. Then, there are the South American countries of Argentina, Chile, and Bolivia, also referred to as the “lithium triangle,” and home to 75 percent of the world’s lithium supply.

Workers at a brine pool at the Rockwood Lithium Plant on the Atacama salt flat. (Source: Reuters)

Does that mean the world has enough lithium to fuel the cars of tomorrow? The answer is yes, but there aren’t enough mines to produce them. In order to prevent environmental damage and the exploitation of unprotected workers, lithium producers have to get smart about lithium mining and production.

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POSCO’s Lithium Production  

Starting in 2010, POSCO and the Research Institute of Industrial Science & Technology (RIST) teamed up to develop a chemically based lithium extraction technology. The innovation cut down extraction time from up to 18 months down to between 8 hours and 1 month, delivering a purity rate of 99.9 percent. The recovery rate of lithium also increased to over 80 percent. POSCO is the world’s first corporation to commercialize the technology.

SEE ALSO: Lithium Rocks: POSCO at Forefront of a Green Energy Future

POSCO CEO Kwon Ohjoon holds lithium on his visit to PosLX, POSCO’s battery production factory in Korea.

It’s also at the heart of the lithium triangle. POSCO currently operates facilities in Chile’s Maricunga Salt Lake, Argentina’s Cauchari Salt Lake and Argentina’s Pozuelos Salt Lake, which alone will boost POSCO’s annual lithium production to 2,500 tons. POSCO also opened its first battery production plant in Korea earlier this year.  

The future of EVs is promising thanks to advancements being made in electric batteries, and there’s a lot at stake for the health and well being of future generations. Increasingly, the availability and costs of EV battery materials will play a vital role in market outcomes and widespread EV adoption. It is vital for companies like POSCO to provide abundant, sustainable and cost-friendly EV battery materials so automakers can continue to enhance the batteries of tomorrow’s cars.

Cover photo courtesy of Quartz.

Below we take a closer look at POSCO’s recent developments in lithium extraction and rechargeable battery production. Technological innovations have helped POSCO emerge as a leader in the industry as it seeks to make each step of the process more sustainable, more affordable, and less wasteful.

POSCO Innovates Lithium Extraction and Production

Over 94% of the global lithium supply comes from just three places: South America (44%), Australia (36%), and China (14%). This is because most lithium is found in naturally occurring brines at high altitudes and with little rainfall. Brines are underground reservoirs of dissolved salts containing elements such as lithium, potassium, and sodium.

To extract lithium from these brines, the salt water must be pumped to the surface into evaporation pools. Once on the surface, the brine is concentrated through solar evaporation techniques and then processed to remove impurities and separate the lithium – a process which can take anywhere from 12-18 months.

The Pozuelos Salt Lake in Argentina are one of the few places in the world where lithium can be extracted from brine.

Lithium can also be extracted from hard rock like spodumene. This process is much faster than extraction from brine; however, it is also much more expensive (up to double the cost) and requires a wide range of hydrometallurgical processes.

Realizing the potential growth of the lithium market, POSCO began to develop new extraction technologies in 2010. This new chemically-based lithium extraction technology is able to reduce extraction time while also improving efficiency and reliance on overseas imports. The first pilot program began in 2013, and in February of this year, POSCO became the world’s first corporation to commercialize chemically-based lithium extraction technology.

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While traditional lithium extraction takes anywhere from 12-18 months, POSCO’s new method shortens the time frame to anywhere from eight hours to one month while also offering a purity rate of 99.9% and increasing the lithium recovery rate to over 80%. Also, typical brine extraction by evaporation is a resource heavy process, and POSCO’s advancements help to make it a much more sustainable venture, using less water and resources.   

Finding Alternative Sources of Lithium

The electric car industry is expected to grow exponentially in the coming years. By 2040 it is expected that electric vehicles (EV) will have up to 47% penetration with consumers. EVs powered by rechargeable batteries will put an added burden on the already stretched lithium supply. Therefore, efforts to expand lithium sources are under way in order to meet the growing demand.

Today, brine and spodumene are most often used and there have been efforts to process lithium from clays. While that process has not yet been commercialized, last month Lithium Australia successfully extracted 94% to 99% lithium from clay deposits in Mexico.

POSCO CEO Kwon Ohjoon holds lithium on his visit to PosLX, POSCO’s new factory that is expected to produce enough lithium for 70 million laptop batteries.

Also, earlier this year POSCO opened its PosLX plant, which is expected to produce 2,500 tons of lithium carbonate per year. That amount is enough to manufacture about 70 million laptop batteries. What is unique about PosLX is that they are currently obtaining their lithium phosphate, a raw material of lithium carbonate, by extracting it from wasted rechargeable batteries. In extending the life cycle of these dead batteries, POSCO is helping to make an already sustainable energy source even more eco-friendly.

More Sustainable Battery Production

In addition to POSCO’s endeavors to find more sustainable ways to produce lithium, they are also becoming directly involved in battery production. In April of this year, POSCO CEO Kwon Ohjoon announced plans to build a smart factory that would be capable of producing anode materials for rechargeable batteries.

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POSCO Chemtech has already expanded its production capacity to 6,000 tons per year, but with the newly announced plant, it will have the capacity to produce 30,000 tons per year with over KRW 200 billion in sales. Also, since the beginning of this year, POSCO has been mass-producing PG-NCM (POSCO Gradient Nickel Cobalt Manganese), the high-capacity cathode material for low-speed electric vehicles.

From smartphones to cars, the future will be powered by lithium-ion batteries, and as more and more industries come to rely on these rechargeable batteries, advancements in lithium production are crucial in order to keep greener forms of energy available and affordable. With new developments in this area, POSCO is already leading in both lithium production and tech innovation, and well-positioned to be a global leader in more sustainable development.  

*Cover image courtesy of the World Steel Association

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Advancements in products, production methods, and new technologies have helped POSCO expand the expectations of what a sustainable steel company should be.  

In honor of Earth Day, The Steel Wire takes a look back at seven recent initiatives & breakthroughs from the last year that have helped POSCO become an industry leader in sustainable development.

POSCO GIGA STEEL: Lighter for EVs, Less Production Emissions

As the auto industry heads toward producing lighter, more fuel efficient vehicles, they need materials that are both strong and light. Car bodies manufactured with POSCO GIGA STEEL and other advanced high strength steels could see a 26% reduction in total weight. Also, based on its life cycle assessment measuring carbon dioxide emissions from production to recycling, POSCO GIGA STEEL performs remarkably well as an eco-friendly material. According to the World Steel Association, steel emits 2.0 to 2.5 kg of carbon emissions when producing 1 kg of material while aluminum emits 11 to 12.6 kg when producing the same amount.

See how POSCO GIGA STEEL offers an ideal material solution for automakers looking to make more lightweight and fuel efficient cars.

POSCO’s Smart Factory Introduces Artificial Intelligence

When POSCO introduced artificial intelligence into its smart factory operations in February, they were able to create higher quality products using a more sustainable production method. Coating weight control is a highly sophisticated process that keeps the coating layer consistent. Quality can deviate depending on the worker, but with POSCO’s new AI technology they can ensure quality control while reducing wasted zinc during production.

Read more about how POSCO is using AI and smart factory technology to make its operations more efficient and sustainable.

POSCO’s Advancements in Lithium Extraction Recharge the Battery Industry

Lithium extraction traditionally takes anywhere from 12-18 months using a slow evaporation technique. However, POSCO’s new extraction method, which came online in February of this year, takes from 8 hours up to one month while also offering a purity rate of 99.9% and increasing the lithium recovery rate to over 80%, which reduces the resources needed for extraction making the process more sustainable and eco-friendly. Also, in a first for the industry, POSCO developed a way to extract lithium from recycled batteries. Both of these innovations have helped create more eco-friendly processes for an industry that is expected to grow exponentially in coming years.

Find out more about POSCO’s developments in lithium extraction and its efforts to reshape the industry.

POSCO Expands Production of its Non-Oriented Silicon Steel for Electric Vehicle Drive Motors

Top-grade non-oriented silicon steel is a core ingredient in high-efficiency premium consumer electronics and electric vehicles. It is an environmentally-friendly material that saves energy and reduces CO2 emissions. With the completion of its non-oriented silicon steel (Hyper NO) facility on February 20, production has increased from 80,000 to 160,000 tons, which is enough to supply parts for approximately 2.6 million electric vehicle drive motors.

Read more about POSCO’s efforts secure its position as a leading supplier to the growing electric vehicle market.

POSCO Humans Selected as Innovation Leader for Sustainable Solar Power Development

POSCO Humans received excellent evaluations last January for its steel structures that were built for solar facility installations. In particular, POSCO Humans received high marks for its structure that are used exclusively for floating solar power generation facilities and exclusive bolts that utilize PosMAC. It is a bolt-assembled structure that eliminates the need for hole machining and special tools.

Discover how POSCO developed floating solar panels using PosMAC.

POSCO’s World Premium Stainless Steel Shows No Corrosion After 18 Years at Incheon Airport

The first passenger terminal at Incheon International Airport was built in 2001 using POSCO’s 446M steel, and after 18 years, few signs of corrosion have been seen. Building exteriors and roofs are the most visible parts of buildings, while also being the most vulnerable to corrosion. Materials used in their construction should be both corrosion-resistant and aesthetically pleasing. Therefore, when planning for the second terminal, they decided to use the same type of steel along with the application of the bead blast process that will create a rough texture on the roof to lower the reflectivity rate for aircraft pilots during take-offs and landings.

Find out how POSCO’s stainless steel products offer decorative and durable interior and exterior options in buildings.

PosMAC Shines at Renewable Energy India

PosMAC was recognized at the Renewable Energy India expo for its unique properties that make it uniquely suited for solar energy development. PosMAC is not just lightweight, it is also non-corrosive and durable enough to last 20-30 years.

Find out more about PosMAC at the Renewable Energy India expo, or find out more about PosMAC.

Throughout April & May, The Steel Wire will explore the uses and benefits of POSCO GIGA STEEL and what POSCO is doing to lead the industry with new automotive steel solutions.   Subscribe to our newsletter today.

It all started 49 years ago in a small fishing village on the East coast of Korea and has grown to be the fourth-largest steel producer in the world.

A Small Fishing Village with 39 Employees

To help rebuild the country after the end of the Korean War, President Park Chung-hee made steel production and heavy industry the centerpiece of his Second Five Year Plan (1967-1971). Despite there being no steel industry in Korea, President Park wanted to be able to manufacture steel domestically without relying on imports and foreign technology.

Opening of POSCO in April 1968

In 1965, President Park visited Pittsburgh, PA, where he gained insight into the steel industry and what would be required if Korea were to develop its own independent production facilities. One year later, Korea International Steel Associates (KISA) was formed. KISA included a consortium of eight companies from five different countries whose goal was to help Korea start its own integrated steelmaking facility. By 1967, the government approved a plan from KISA that included a basic agreement on technology & funding.

Pohang, a small fishing village on Korea’s eastern coast, was chosen as the official site of the steel mill. POSCO was officially incorporated on April 1, 1968, as a joint public-private venture with just 39 employees. Park Tae-joon came on board to serve as CEO and by May 1968, construction of POSCO’s headquarters had begun.

In May 1968 the POSCO headquarters construction had begun

Setbacks to Success  

Despite the steps taken to move Korea’s steel industry forward, there were many setbacks along the way. First, overshadowing each step of its development was the skepticism coming from both foreign and domestic fronts. Foreign investors could not understand why Korea would expand into industries it had no history with. And local leaders doubted their ability to overcome all of the technological, economic, and infrastructural hurdles facing them. To make matters worse, KISA was disbanded in September 1969 – leaving plans for POSCO up in the air.

Korean President Park Chung-hee was instrumental in getting POSCO off of the ground. Here he is at one of the blast furnaces at Pohang Works. (1976)

Determined to complete the project, President Park began negotiations with Japan who later provided the grants, loans, and technology for the construction of the initial plant. Construction of the steel mill started in 1970 and on June 9, 1973, at 7:30 am, the first steel came off of the line. By April 1974, they had decided to expand the capacity of the third furnace at Pohang Words to 5.5 million tons and the fourth furnace capacity was increased to 8.5 million tons.

Expansion

Because of POSCO’s early successes, the Korean government decided to build a second facility on the peninsula’s southern coast in Gwangyang. After the completion of the fourth phase of construction at Gwangyang, POSCO had a total of 20.8 million tons of crude steel production capacity. Of that total, Pohang was producing 9.4 million tons with Gwangyang producing 11.4 million tons. It earned the distinction of being the world’s largest steel mill and POSCO become one of the main driving forces behind the industrialization of Korea’s economy.

After its completion, Gwangyang Works was the largest integrated steel mill in the world. (1992)

In 1986, POSCO entered into a 50/50 joint venture with US Steel (UPI). Their partnership was set to develop a comprehensive modernization program that would upgrade the processes and equipment of the facility. Since the establishment of USS-POSCO Industries (UPI), POSCO has continued to branch out all over the globe. It has set up STS production plants at Zhangjiagang Pohang Stainless Steel (China) and POSCO Tai Knox (Thailand), and automotive steel plate production lines (CGL) in Mexico, India, and China. PT Krakatau POSCO was built in 2013 and was the first integrated steel mill in Southeast Asia.

POSCO Becomes the Most Competitive Steelmaker in the World

By 2014, production capacity had increased to 37.7 million tons. Pohang now has three heavy plate mills, four cold rolling mills, five blast furnaces, heavy plate mills, and four hot rolling mills. Beyond its scope and production capacities, POSCO is committed to developing advanced, high-quality World Premium Products. In addition, POSCO’s innovations in other industries, integration of smart factory technologies into the production process, and its commitment to local communities continue to push POSCO forward.

Advanced World Premium Products

With a focus on advanced steel solutions, POSCO has developed a wide range of products that can be customized to fit a customer’s unique needs. These World Premium Products are the reason POSCO has been listed as the most competitive steelmaker for seven years in a row. For example, PosMAC has been utilized in many different ways from floating solar cells to durable public art pieces. Also, POSCO’s award winning PosCozy floor plates provide soundproofing and heat insulation.

The hot rolling process at Gwangyang produces 3,400,000 tons per year

Lithium Extraction & Other Ventures

POSCO has also strengthened its global competitiveness by accelerating new businesses in the materials and energy industries. POSCO has developed a fuel cell plant that was completed in 2008, a Myanmar gas field that produces 500 million cubic feet of gas each day, and lithium extraction technology that is 10 times faster than previous methods.

Solution Marketing

In addition to manufacturing advanced, high-quality steel, POSCO’s Solution Marketing provides customers with added technology solutions and commercial support. Instead of just supplying products and stepping away from the customer, POSCO works with its customers to create customized solutions that ensure successful implementation. Partnering with manufacturers early on in the production process, POSCO has stepped beyond its role as a steel supplier and now serves as a solutions provider.

Smart Factory Technology

POSCO also incorporates cutting edge technology and innovations into its production processes. At its automotive steel plate factory in Gwangyang, POSCO introduced AI technology into its coating weight control system, improving quality and reducing waste. Also, POSCO CEO Ohjoon Kwon remains committed to developing more smart factory solutions and has been meeting with executives of other companies, such as GE and Siemens, to explore partnerships and best practices.

President Park Chung-hee comes to POSCO to celebrate the opening of Pohang Works

Someone seeing the successes of POSCO today might have a hard time understanding how it even started, much less how it was able to overcome the immense barriers it faced. POSCO continues to be a leader in the steel industry with its advanced, high-quality World Premium Products. Also, POSCO’s successes in its non-steel ventures show its commitment to remaining on the cutting edge of technological trends and industrial innovation. Watch the video below to see for yourself.

https://www.youtube.com/watch?v=nq574Ivp7c0

POSCO has been ranked as the world’s most competitive steelmaker for seven years in a row. It has remained competitive in part by focusing on its World Premium Products, which offer advanced steel solutions for their customers. POSCO has also put extensive effort into maximizing its non-steel technologies and products to find new growth in non-steel sectors. In addition, POSCO has been a leader in innovating its own manufacturing processes, incorporating advanced AI and IoT technologies into its smart factories. POSCO has also remained committed to not only growing its non-steel secondary businesses, but advancing upon existing technologies to create new and eco-friendly production methods.  Below we take a closer look at how POSCO has continued its work to innovate and stay competitive.

POSCO Expands Lithium Manufacturing Business

Amid the rising demand for rechargeable lithium-ion batteries used in smartphones, laptops, and electric vehicles, POSCO has been working on proprietary technology for lithium extraction. Earlier this year, POSCO opened Korea’s first lithium plant, PosLX, and commercialized the production of lithium carbonate from rechargeable batteries after 7 years of development.

From left to right: Jae-chun Song, chairman of Gwangyang City Council, Hyun-bok Jeong, mayor of Gwangyang, Gi-jong Woo, deputy governor of South Jeolla Province, POSCO CEO Ohjoon Kwon, Ung-beom Lee, president of LG Chem and Nam-seong Cho, president of Samsung SDI who can be seen pressing symbolic buzzers to show that the plant is now online.

The PosLX Plant is expected to produce 2,500 tons of lithium carbonate per year using a new eco-friendly technology, which is enough to manufacture about 70 million laptop batteries. This output will supply POSCO’s battery making partners LG Chem and Samsung SDI, as well as POSCO ESM, a subsidiary that produces cathodes for secondary batteries.

POSCO incorporates AI into Smart Factories

POSCO is also breaking through technical barriers by designing smart factories connected through IoT technology and artificial intelligence (AI) that produce higher quality products with less waste. POSCO has also begun incorporating advanced AI technology into its smart factories in order to more efficiently manufacture automotive steel.

Smart factories operate autonomously as the machines talk to each other through sensors – reducing faulty products and waste.

In particular, the ‘Smart Solution for Coating Weight Control Based on AI‘ technology uses an automated control technology that predicts the coating weight in real time and accurately meets the target coating weight. When coating weight is controlled manually, quality deviates depending on the skill level of the worker, which inevitably results in significant amounts of wasted zinc. However, when it is automatically controlled by AI, the quality of POSCO’s automotive coated steel can be enhanced while production costs are decreased. These new automated processes have also helped increase work efficiency and productivity with workers.

Also, CEO Ohjoon Kwon recently visited Siemens in Germany and GE in the U.S., both of which are known to have successfully operated advanced smart factories to observe how other companies have implemented highly sophisticated smart factory models. Through close cooperation with POSCO’s major affiliates such as POSCO E&C, POSCO Energy, and POSCO ICT, Kwon aims to embrace smart technology and reorganize POSCO’s entire business structure (Smart Factory, Smart Buildings & Cities, and Smart Energy).

POSCO’s Thailand CGL, Southeast Asia’s First Automotive Steel Sheet Plant

Faced with sluggish growth due to the oversupply from China and a decline in steel demand, POSCO has been looking to expand sales in new markets. In a bid to become the world’s largest steel provider for automobiles, POSCO completed its Thailand CGL (Continuous Galvanizing Line) in 2016. The plant has an annual production capacity of 450,000 tons and incorporates some of the most advanced AI technologies in its smart factory system.

In addition to being one of the strongest automotive production bases in Asia, Thailand is also the center of the consumer-electronics industry in Southeast Asia.

With the newly established automotive steel plate plant in Thailand, POSCO’s global volume will reach over 9 million tons in 2017 and more than 10 million tons per year starting in 2018. The automotive steel sheets manufactured by the facility will be supplied to global auto parts companies and carmakers operating in Thailand including Toyota, Nissan, and Ford. Despite the increase in competition from other steelmakers, POSCO aims to become a market leader through building strategic partnerships with global automakers operating in the country.

POSCO CEO Ohjoon Kwon and Deputy Prime Minister and Minister for Foreign Affairs Tanasak Patimaprakorn shake hands at hands at Thailand CGL.

As cities around the world get more crowded, urban dwellers are facing more and noisier neighbors. To help combat this problem, POSCO introduced PosCozy in 2016, a unique flooring system that combines manganese (Mn) Z-clips with continuous galvanized steel plates that greatly reduce impact noise, save space, and lower costs (product video).  

Unlike conventional flooring that uses non-steel materials such as styrofoam insulators and rubber buffer materials, POSCO’s floor plates are developed by combining high Mn steel Z clips – a material that is 4 times more vibration-resistant than general steel – giving it the ability to reduce noise between floors. PosCozy is able to reduce the sound of typical walking from 50dB to just 40dB, while impact sounds are lowered from 58dB to 38dB.

PosCozy is the world’s first high manganese steel floor plate with first-class floor noise reduction.

PosCozy is the world’s first high manganese steel floor plate with top quality floor noise reduction. It is also the first flooring system to receive the highest rating in sound insulation from Korea’s industrial rating agency.  Due to its unique and superior qualities, PosCozy won the prestigious Jang Young Sil Award in 2016.

POSCO’s High Manganese Steel Used in the World’s Largest LNG-Fueled Bulk Carrier

Due to the rising number of shipbuilding orders for large-sized liquefied natural gas (LNG) carriers, there has been a shortage of nickel,  requiring new and innovative solutions to construct LNG-fueled ships. In order to address these issues, POSCO developed a new type of high-performance manganese steel and announced in 2016 that it would be applied to the LNG-fueled bulk carrier built by Hyundai Mipo Dockyard.

Developed independently by POSCO, this high manganese steel contains an Mn content of 20%. Compared to traditional materials, it boasts improved performance through unique properties that include high strength, low-temperature toughness, wear resistance, non-magnetic, and damping properties.

It is the first time a bulk carrier will have been constructed to include an LNG-fueled system and a fuel tank made of high manganese steel.  Its higher strength, ability to withstand an extremely low temperature (-162℃), and cost competitiveness make it superior to the nickel and aluminum alloys that are typically used in tanks. The ship, which will be the world’s largest LNG-fueled bulk carrier, is expected to have a capacity of 50,000 tons, seven times more than previous ships.

POSCO’s high-performance manganese steel will be applied to the world’s largest LNG-fueled bulk carrier built by Hyundai Mipo Dockyard.

POSCO has been able to overcome immense barriers, from the nickel scarcity in the LNG market to the oversupply of steel from China. POSCO strives to be a pioneer across all industries with its innovative products and will continue to do so in the years to come.

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Earlier this month POSCO opened its first lithium extraction plant, PosLX, in Korea that is expected to produce 2,500 tons of lithium carbonate per year – enough to produce about 70 million laptop batteries. While most lithium carbonate is extracted from salt deposits, POSCO was the first to develop a way to extract it from wasted batteries.

Lithium Demand to Continue Rising

Demand for lithium-ion batteries is expected to rise exponentially in the coming years. Tesla, Chevrolet, Nissan, Toyota, and other upstarts are all expecting increased demand as their electric vehicles begin rolling off production lines. Overall, worldwide demand for lithium carbonate is expected to rise from 66,000 tons in 2015 to over 180,000 tons by 2025.

“With the supply of electric cars and the development of smart grid technology, the market is expected to result in massive growth.” – Ohjoon Kwon, CEO

POSCO Reduced Extraction Time to 8 hours

Starting in 2010 when CEO Ohjoon Kwon was the Director at the Research Institute of Industrial Science & Technology (RIST), POSCO began working on developing a high-efficiency technique for extracting lithium from water.

In 2010, POSCO began development of a new chemically based lithium extraction technology that is able to reduce extraction time while also improving efficiency and reliance on overseas imports. The first pilot program began in 2013 and POSCO recently became the world’s first corporation to commercialize chemically based lithium extraction technology.

Lithium extraction traditionally takes anywhere from 12-18 months using a slow evaporation technique. However, POSCO’s new extraction method takes from 8 hours up to one month while also offering a purity rate of 99.9% and increasing the lithium recovery rate to over 80%.

Furthering POSCO’s work in lithium extraction, in 2011 POSCO partnered with RIST to further establish pilot production facilities with an annual capacity of two tons. Since then, POSCO has successfully completed more pilot production facilities overseas at Chile’s Maricunga Salt Lake (2013), Argentina’s Pozuelos Salt Lake (2014), and Argentina’s Cauchari Salt Lake (2015). The lithium processing plant at the Pozuelos Salt Lake in Argentina will have an annual processing capacity of 2,500 tons of high-purity lithium that can be used in rechargeable car batteries.

Pozuelos Salt Lake in Argentina

Eco-friendly Extraction Using Recycled Batteries

POSCO has also commercialized a new eco-friendly technology used to produce lithium carbonate. While lithium is typically extracted from salt, for the first time ever, POSCO developed a way to extract lithium from recycled batteries.

The lithium carbonate produced from these recycled secondary batteries was tested in January 2017 and found to be of equal quality in terms of purity, charge, discharge efficiency, and capacity. This technology is used at POSCO’s PosLX plant with an annual capacity of 2,500 tons, and will help supply POSCO’s battery making partners such as LG Chem, Samsung SDI, and POSCO ESM, a subsidiary that produces cathodes for secondary batteries.

With POSCO’s unique technologies in place, POSCO is planning to increase production capacities to over 40,000 tons of lithium – both at home and abroad.

From left to right: Jae-chun Song, chairman of Gwangyang City Council, Hyun-bok Jeong, mayor of Gwangyang, Gi-jong Woo, deputy governor of South Jeolla Province, POSCO CEO Ohjoon Kwon, Ung-beom Lee, president of LG Chem and Nam-seong Cho, president of Samsung SDI who can be seen pressing symbolic buzzers to show that the plant is now online.

CEO Ohjoon Kwon’s Commitment to Grow POSCO’s Non-Steel Business

Since 2010 when he was a director at RIST, POSCO CEO Ohjoon Kwon has worked to promote the advancement of lithium extraction technology. His work can be seen in POSCO’s recent efforts to significantly cut extraction time while also finding new and eco-friendly sources of lithium carbonate.

POSCO Chairman Ohjoon Kwon gives a celebratory speech at a newly built lithium extract plant in Gwangyang, South Jeolla Province, on Feb. 7.

When Kwon was appointed as POSCO’s CEO in 2014, he focused on strengthening POSCO’s steel businesses. However, as he begins his second term, he has emphasized the need for POSCO to search for profitable growth engines in order to strengthen its global competitiveness.

“Our vision is what propelled us to keep going in spite of many difficulties and limitations.” – Ohjoon Kwon, CEO

In the world’s growing lithium market, POSCO is determined to become a leading supplier. While strengthening its non-steel business segments, POSCO will continue working to provide innovative technologies that are efficient, effective, and eco-friendly.

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From left to right: Jae-chun Song, chairman of Gwangyang City Council, Hyun-bok Jeong, mayor of Gwangyang, Gi-jong Woo, deputy governor of South Jeolla Province, POSCO CEO Ohjoon Kwon, Ung-beom Lee, president of LG Chem and Nam-seong Cho, president of Samsung SDI who can be seen pressing symbolic buzzers to show that the plant is now online.

“Our vision is what propelled us to keep going in spite of many difficulties and limitations,” POSCO CEO Ohjoon Kwon said. “We plan to continue differentiating ourselves in the energy material business with lithium, high purity nickel, and positive electrode materials.”

Jong-joo Kim, a director at the Ministry of Trade, Industry and Energy said, “Today’s completion of the plant gives POSCO the ability to provide lithium carbonate for its partners in the battery manufacturing industry. ”

POSCO is currently obtaining its lithium phosphate, a raw material of lithium carbonate, by extracting it from wasted rechargeable batteries. In the future, POSCO will use its proprietary lithium extraction technology to produce its own lithium phosphate. POSCO has been developing this eco-friendly technology for 7 years. It extracts lithium phosphate from saline water and converts it into lithium carbonate. Unlike the conventional method that takes 12 to 18 months on average, POSCO’s highly efficient method takes as little as 8 hours or up to one month. This method offers a purity rate of 99.9% while also increasing the lithium recovery rate to over 80%.

POSCO CEO Ohjoon Kwon and others being briefed on the lithium production process while taking a tour of the PosLX Plant.

Due to the continuous expansion of the mobile industry, the demand for lithium-ion secondary batteries has increased exponentially. In 2015, worldwide demand for lithium carbonate for batteries swelled from 6,000 tons (in 2002) to 66,000 tons. And as the presence of electric vehicles and energy storage systems (ESS) continues to expand, the demand for lithium carbonate is expected to balloon over 180,000 tons by 2025. To address these changing needs, POSCO plans to strengthen its position as a global lithium production base by building plants that have an annual production capacities of 40,000 tons of lithium – both at home and abroad – starting with the PosLX Plant at Gwangyang Works.

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When Tesla unveiled the Model 3, its low-priced EV, to promote sales, about 370,000 cars were pre-ordered globally in a single month. This was about 30,000 more than the number of Toyota Lexus models sold in the US last year.

As a result, Tesla decided to increase the vehicle production capacity to 500,000 until 2018 to keep up with the high demand of the market. This increase in vehicle production capacity is eight times more than the current vehicle production capacity, which is around 62,000 per year.

Automotive companies around the world are now rushing to getting into the game, marking the blossoming of the development of new electric vehicles. Market analysts anticipate that the EV will dominate the automotive market as quickly as smartphones transformed the mobile phone market.

Global Environmental Efforts Transform the Automotive Industry

As the main cause of global warming, cars using fossil fuels will no doubt cease to exist in the future. As a result, the world is experiencing a market shift toward electric vehicles faster than originally anticipated.

For example, EVs made up more than 19 percent of vehicles in Norway, a representative oil-producing country, by the end of 2015. Norway is also taking a legal step to ban the sales of cars that use fossil fuels starting in 2025. Other European countries including the Netherlands seem to be following this course as well. Clearly, the EV is no longer just a trend.

In addition, China—the world’s biggest automotive market—is providing subsidies (as much as $16,000 per car) to proliferate the use of EVs and mandating that these cars make up at least 50 percent of vehicle purchases by public institutions.

India, too, is changing their traffic policies regarding EVs to help reduce the country’s severe air pollution. India’s Secretary of Transportation said that the nation is establishing a strategy to ensure that all cars in India are electric by 2030. It is certainly inevitable that the electric vehicle will be the car of the future.

Reducing EV Energy Loss with Electric Steel Plate

The core parts of the EV include a motor, battery and car frame. EVs don’t have engines. Instead, the power that moves an EV comes from electricity stored in its battery.

An electric motor powers the wheels which move the car. To increase the output of the motor, the peculiar qualities of the non-directional electric steel plate has to be improved.

The output of the motor is expressed in the form of “speed of revolution x torque.” For a larger motor torque, the magnetic flux of electric steel, which is used as a core element of the motor wrapped with wire, must be high.

Also, to increase the output of the motor, the speed of revolution should be fast. This increases excitation frequency and iron loss, resulting in lower power efficiency. Therefore, in order to increase the motor characteristics, electric steel plate, which has low iron loss, should be used even in high-frequency territory.

In addition, for motors to revolve quickly, the rigidity of the electric steel plate, which is used as a rotor, must be high for it to avoid transforming. In other words, electric steel plate should be of a high quality to heighten the accelerating performance of EVs.

Material Technology That Overcomes the Limitations of EVs

One of the weaknesses of EVs is that the mileage per a single charge is short compared to diesel cars. To increase mileage, the charge rate capacity of the lithium-ion battery should be high.

The charge rate capacity is higher when more lithium-ion is available to be charged. Active materials with a wide specific surface area should be developed into cathode materials to increase the amount of lithium-ion charge for a higher charge capacity.

Also, as the demand for lithium-ion batteries has dramatically increased, the cost of lithium metal has skyrocketed due to its short supply.

Lithium salts are extracted from water in mineral springs and salt lakes like those in South America in a similar method as salt evaporation. This existing method is low in efficiency and production speed, and the produced lithium metal has a low purity of approximately 40 to 50 percent.

“LiSX” is a new method of lithium extraction that POSCO recently developed. This method can concentrate and produce lithium with more than 99.9 percent purity in a low concentrated salt lake with a lithium content of 20 parts per million (ppm) in eight hours.

The construction period of this type of production facility is short, and lithium can be produced immediately after the facility begins operation. As a result, this method is a good response to the recent changes in lithium demand.

△Renault’s Eolab—an EV that uses high-strength steel and magnesium sheet

To increase driving efficiency of EVs, the weight of a car frame should be reduced. A direct way to do this is to lighten the weight of chassis and car body materials.

steel is suitable as a chassis material to lighten the weight of automobile components and heighten the performance of crashworthiness, as it has a high formability and is two to three times stronger than general steel.

Aluminum and carbon-complex composites are currently used for parts of the body of the car, but magnesium alloy plates, which are far lighter than aluminum, are receiving attention as a future material.

There is still a need for further development and technical improvement of the electric vehicle to secure its place as the car of the future. In order to heighten the performance of the EV, material technology that can improve materials for the car frame, motor and battery is even more necessary than the development of machine techniques.

Material companies will no doubt help to improve the global traffic environment and further, work as advanced guards to improve the environment of the earth. This is why the performance of POSCO—an integrated material company—is greatly expected to make such contributions.

Written by science technology columnist Dr. Junjeong Lee

The opinions expressed in this POSCO Report piece are the author’s own and do not necessarily reflect the views of POSCO.

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The use of lithium is soaring. It’s gone from 70,000 tons in 2002 to 170,000 tons in 2014, and some estimate that could grow to 470,000 tons by 2025. And with that surging demand, POSCO has identified lithium as a major product for the company’s future business growth.

“POSCO is accelerating the lithium material industry after lithium was selected as the new growth business that will lead the future of the company,” said CEO Ohjoon Kwon when he became the head of POSCO in 2014. “If steel is the ‘rice’ of the current industry, lithium will take on that role in the future.”

What Is Lithium?

For such a common element, most people don’t know a lot about lithium. The soft, silver-white metal is the third element on the periodic table, making it the lightest metal and least-dense solid element. It is found commonly around the Earth, but because it is highly reactive, it is rarely found in a pure, elemental form, and instead is present in very low concentrations in sea water, in rock in the Earth’s crust (especially granite), and in brines and salt lakes.

Importantly, lithium is also very energy-dense—in fact, it has twice the energy density of the next closest alternative—making it a great option for portable energy storage applications.

Lithium, however, is quite difficult to extract. In the past, it was gathered on large salt farms, and required months for the water to evaporate, leaving lithium salts behind. But in 2010, POSCO (with support from the Ministry of Trade, Industry and Energy) developed a high-efficiency technique for extracting lithium from water. Instead of a large and slow evaporation process, POSCO uses a chemical reaction to extract the lithium more quickly. It also increased its extraction capabilities to 200 tons per year.

Now POSCO is expanding its lithium processing even more, opening a cutting-edge lithium processing plant at Pozuelos Salt Lake in Argentina this year. Built high in the Argentine mountains, some 4,000 meters above sea level, the new plant had a groundbreaking ceremony on February 14, and once operational later this year it will boost POSCO’s annual lithium production to 2,500 tons.

Lithium in IT Gadgets

Lithium is a key element in lithium-ion batteries, which power many of our most popular devices, including mobile phones and laptops. Lithium-ion batteries can generate a 3 volt charge in each cell, much more than lead-acid and zinc-carbon cells, meaning it can provide more power more efficiently.

For portable devices, like mobile phones, size and weight are at a premium, so being able to contain more power means being able to create smaller and more useful mobile gadgets. Lithium-ion batteries are also commonly used in portable power tools, like drills, saws and lawn trimmers.

In addition to the success of lithium-ion rechargeable batteries, regular lithium batteries are also in high demand, often used in such devices as pacemakers, cameras and watches.

Lithium for a Green Future

Beyond gadgets, lithium-ion batteries are a big part of the future of green energy. Solar, wind and other renewable energy sources are important, but you still need an energy storage device to store that power between peaks and valleys.

In particular, they are at the heart of the latest developments in electric cars, like the very popular Tesla cars. And as an electric car usually requires around 40 kilograms of lithium for its lithium-ion battery, that adds up quickly. In fact, Goldman Sachs estimates that the amount of lithium needed for electric car batteries will go up 11-fold over the next nine years.

But the eco-friendly applications don’t stop with cars. Motorcycles, large-scale residential facilities and industrial facilities are all increasingly using lithium-ion batteries, too.

POSCO Leads the Way Toward a Lithium Future

“With the supply of electric cars and the development of smart grid technology, the market is expected to result in massive growth,” noted CEO Kwon. “In order to raise competitiveness of the domestic secondary cell industry, it is crucial to develop lithium resources along with localizing core material.”

Pozuelos Lake, where POSCO is building its new processing facility, covers 106 square kilometers, and has an estimated 1.5 million tons of lithium reserves. That’s enough for millions of large-scale lithium-ion cells, which is good news for the environment and our planet.