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.

A key outcome of public-private cooperation following RIGI approval by the Argentine government and the South Korea–Argentina summit

POSCO group’s resource-focused strategy and lithium supply chain to gain further momentum, supported by POSCO Argentina’s return to profitability in the second quarter

POSCO Holdings has secured a US$700 million (approximately KRW 1 trillion) credit facility from the Inter-American Development Bank Group (IDB Group), an international financial institution, to fund the operations of its Argentina brine lithium business.

On August 4, POSCO Argentina, POSCO Holdings’ Argentine brine lithium production subsidiary, obtained approval from IDB Invest—the private-sector arm of the Inter-American Development Bank Group (IDB Group)—for a short-term credit facility of up to US$700 million.

As part of its strategy to support critical mineral supply chains in Latin America and the Caribbean, the IDB Group provides financing for resource development projects in the region that demonstrate strong performance and competitiveness. In approving the facility for POSCO Argentina’s lithium business, IDB Invest highly recognized the project’s compliance with global ESG standards and its contribution to economic development in Latin America.

The approved facility will allow POSCO Argentina to secure working capital as needed for its first and second brine lithium plants, with the second plant scheduled for completion in the second half of the year. This is expected to further strengthen the subsidiary’s financial stability.

In addition to securing substantial working capital at competitive interest rates, POSCO Argentina is expected to benefit from meaningful tax incentives. Under the intergovernmental agreement establishing the IDB, preferential tax treatment will apply to interest payments and financial transaction taxes incurred in the borrowing process. This is expected to significantly reduce financing costs and enhance the project’s profitability and competitiveness.

POSCO Holdings views the Argentine government’s approval of the Incentive Regime for Large Investments (RIGI), together with IDB Invest’s approval of the large-scale credit facility following the South Korea–Argentina summit held on July 31, as a turning point that has reaffirmed the global competitiveness of its lithium business. The Company also sees this as a leading example of successful public-private cooperation to strengthen critical resource supply chains.

POSCO Holdings’ Argentina lithium business is gaining further momentum through strong financial performance, including POSCO Argentina’s first quarterly profit in the second quarter of 2026; public-private diplomatic efforts with the South Korean government; institutional support from the Argentine government; and access to competitive international financing.

Building on these tangible achievements and competitive strengths, POSCO Holdings will continue to advance POSCO group’s resource-focused “Triple Core” growth strategy. The strategy encompasses industrial resources, including steel; strategic resources, including lithium, cathode and anode materials, rare earth elements and rare gases; and energy resources, including LNG and renewable energy. POSCO Holdings will further strengthen its competitive lithium resource supply chain as a leading supplier of critical resources.

▲ KIM Seung Jun, Head of the Finance & IR Division at POSCO Holdings (right), and James Scriven, CEO of IDB Invest (left), pose for a commemorative photo at the signing ceremony for POSCO Argentina’s credit facility agreement at POSCO Center in Seoul on August 28.

POSCO Argentina practiced warm sharing by donating 500 sets of backpacks and school supplies to students in high-altitude areas of Salta Province, Argentina, affected by heavy rainfall.

▲POSCO Argentina held a donation ceremony on April 3 at the San Antonio de los Cobres City Hall to provide 500 sets of backpacks and school supplies to children in areas affected by heavy rainfall.

POSCO Argentina held a donation ceremony on April 3 at the gymnasium of San Antonio de los Cobres (SAC) City Hall.

The event was attended by high-ranking provincial government officials, including SAC Mayor Mr. Alberto Carral, Salta Province Production Minister Mr. Martin de los Rios, and Deputy Minister of Education Ms. Analia Guardo, as well as about 150 students from three schools and parents, who joined together in a warm show of solidarity.

▲Damage situation in San Antonio de los Cobres city during the heavy rainfall in March.

This donation was planned to comfort residents of the area who suffered significant damage from sudden heavy rain at the end of March, and especially to convey hope and courage to future generations.

At the event, a puppet show prepared by students was performed, followed by the presentation of school supply sets prepared by POSCO Argentina.

POSCO Argentina President Hyun Park said, “I would like to express my sincere condolences to everyone who suffered from this heavy rainfall, and I am relieved that rapid recovery is taking place. Although it’s a small gesture, I hope it helps children continue their studies and dream about their future. POSCO Argentina will continue to realize the value of mutual growth by continuing sustainable social contribution activities with the local community.”

Meanwhile, POSCO Argentina supports vulnerable groups in the region and medical infrastructure based on its sustainable management philosophy, and it is recognized as a responsible global company locally.