– Finding the Hidden POSCO! –

Let’s begin!

① GIGA STEEL — Stronger, Lighter and Better for the Environment

POSCO developed GIGA STEEL, stronger and lighter than competing materials like aluminum and carbon fiber reinforced plastics (CFRP). Withstanding over 100 kg on 1mm2 space, GIGA STEEL builds stronger car bodies, suspension and battery packs making electric vehicles (EVs) safer for the public. Three times stronger and yet 3 times thinner than aluminum, it vastly lightweights car bodies.

With such strength, the GIGA STEEL effectively absorbs and disperses shocks in the event of an accident. It minimizes the shock impact thereby protecting the passengers as well as the batteries. Lighter but sturdier cars were made possible through POSCO’s GIGA STEEL.

GIGA STEEL is also eco-friendly as it helps protect the environment by reducing the cumulative CO2 emissions of cars by about 10%.

② Steel in the Tires! POSCO’s WTP Tire Cord Steel

Though invisible, steel is what makes car tires more durable. POSCO’s WTP (World Top Premium) tire cord steel is hidden in tire chords one of the many essential tire components. POSCO’s WTP refers to a line of products that enhance clients’ competitiveness with its high technology. POSCO’s WTP steel wire for tire cords are highly regarded – it improves stability and while minimizing the tire weight.

And it’s produced by twisting high carbon steel wire rod into a fine wire of 0.4 to 1.15mm in diameter. To withstand various dynamic loads on the vehicle, the tire cord steel undergoes rigorous quality control.

③ For Drive Motors, the World-class Electric Steel Hyper No

A motor is a key component of EVs. It boosts fuel efficiency and the performance of EVs. The function of drive motors in EV is that of an engine in gas vehicles – it allows the driveshaft to rotate via electric current. Highly efficient drive motors must be equipped with electrical steel plates with minimal power loss. POSCO has developed just that – the world-class electric steel plate, Hyper NO. Hyper No is used on high-efficiency motors.

When converting electricity into rotating energy, energy loss is inevitable. POSCO’s Hyper NO effectively minimizes the energy loss, thereby increasing energy efficiency – by over 30% than conventional products. To maximize motor efficiency, POSCO increased the magnetic flux density and successfully minimized energy loss. Thanks to POSCO’s Hyer No, an ultra-thin electric panel, as thin as 0.15mm, with minimum energy loss became a reality.

The ‘self-bonding’ technology POSCO developed recently applies coatings to the surface of electric steel plates, whose function is similar to that of glue. Unlike welding, POSO’s self-bonding technology retains the innate electromagnet characteristics of electric steel plates, which also connects to the improved motor efficiency. The self-bonding reduces energy loss by over 10 % compared to the conventional welding technique.

④ Secondary Battery Materials – from POSCO CHEMICAL!

Unlike disposable primary batteries, secondary batteries can be recharged and reused repeatedly. Lithium-ion battery, an essential component of EVs, is a type of second batteries. Besides EVs, it is a popular choice for many consumer electronics such as portable devices and laptops. It’s also widely used for industrial robots and power tools that require high capacity and power.

A secondary battery consists of cathode materials that determine the average voltage and capacity of a battery, and anode materials which induce current flow by storing then releasing lithium-iron from the cathode, via external circuits.

POSCO CHEMICAL, POSCO Group’s up-and-coming-global enterprise, produces key materials for secondary batteries – cathode and anode materials. The newly established POSCO CHEMICAL is the result of the merger back in April – between POSCO ESM, top-quality cathode producing enterprise, and POSCO CHEMTECH, Korea’s only natural graphite anode producer. As a result of their merge, POSCO CHEMTECH is expected to bring synergies between anode and cathode production. Large-scale early investments in production facilities are currently underway.

⑤ Battery Charge Stations? POSCO ICT Is on It

The biggest concern for the early adopters of EVs is the business of charging the EVs. Making the charge as easy as possible is the key part of the solution.

That’s where POSCO ICT comes in. POSCO ICT established ‘ChargEV,’ a charging infrastructure for EVs. ChargEV provides comprehensive services related to charging EVs, which includes charge stations, control systems, charging membership as well as car-sharing services. Considering accessibility and charging time, POSCO ICT has already established public charging networks at major hubs across Korea – Lotte Mart, E-Mart, Homeplus, and LG Electronics’ BEST SHOP, etc.

⑥ Safe Power Supply, With POSCO ENERGY

Providing power for EVs is also POSCO Group’s utmost priority. Since launching the energy business in 1969, POSCO ENERGY has steadily supplied power to the Seoul Metropolitan area for over 50 years. Through expanded businesses such as the LNG combined-cycle power plant in Incheon, the company went from being Korea’s first private power plant to Korea’s largest.

As it turns out, the world’s top steelmaker POSCO was also a key player in producing core EV materials. The next installation of [Find the Hidden POSCO] will explore POSCO technologies that can be found inside our homes.

The year 2019 might be the year when the electric vehicles cross over the valley of death.

Auto sales projected for 2019 across the globe is 92.5 million. Among this 92.5 million, EV sales are expected to be around 4 million. With the market share of EVs exceeding 4% in the entire auto market, the year 2019 could signal the coming of a monumental moment in which EVs escape from the early chasm.

What’s growing in tandem with the EV market is the battery industry. In addition to EVs, battery industry is expecting even more significant growth because of their broad applicability: to smartphones, tablets, drones, and robots.

Recently, the top three companies in Korea’s battery market – LG Chem, Samsung SDI, and SK Innovation – are seeing a surge in the number of new contracts from global automakers, reaching 110-trillion KRW last year. Considering the vast scope of semiconductor export, one of Korea’s top products, is about 141-trillion KRW, and it’s reasonable to predict that the battery market could grow to become the next semiconductor industry.

Accordingly, the market for secondary battery worldwide is expected to grow more than 70% this year, from last year’s 120-billion USD to over 200-billion USD.

<Global EV/Battery Market>

▲ Unit: Battery Market Size ($), EV Sales (10,000 units)

l Fierce Competition over Market Dominance

Dyson, a renowned British innovator with bladeless fans and filterless vacuum, announced its plan to build a production plant in Singapore last October signifying Dyson’s entry into the EV market. The company plans to complete the factory by next year with a massive investment of 2.5 billion British pounds to kick off the production from 2021. Considering Dyson’s ready capacity for innovation, the probability is high for the company to become the gamechanger in the auto market, after Tesla.

Meanwhile, battery companies are anticipating fierce competition for market dominance with investment set at trillions (KRW). In order to curb the market entry of the latecomers, Korean companies such as LG Chem, Samsung SDI, and SK Innovation as well as global companies like China’s CATL, BYD and Japan’s Panasonic are striving to create ‘entry barriers.’ These companies are trying to achieve the economy of scale. Expanding their production capacity is one such measure.

The EV battery market expects an acceleration toward oligopoly. If the current battery makers reach the production capacity of 50GWh and more, an effective entry barrier against the market’s latecomer will have been created.

In the battery industry, it takes startup companies about ten years to enter the market and establish a substantial presence. The battery market is likely to become oligopolistic in the future, an extreme projection being, the top five companies will dominate 80% of the global battery market. 2019 is expected to be the turning point where major battery makers will build Giga-factory, a state-of-the-art production facility with large-scale production GWh-capacity.

l Boosting Synergy Through Mutual Cooperation

With any large-scale investment, a risk is bound to happen. To minimize damages, many global EV companies are applying various hedging strategies through cooperation with related industries and companies.

For example, GM and Honda Motor have formed a comprehensive partnership. Ford and Volkswagen, triggered by the GM-Honda partnership, is pushing for an ‘automobile alliance’ for wide-ranging cooperation in the field of EVs and autonomous vehicles. This year, more global battery makers and automakers are likely to cooperate and seek mutual growth. Panasonic, which has been in a cozy partnership with Tesla, recently agreed to a joint venture with Toyota. LG Chem, SK Innovation and other companies are working together with Volkswagen to build Giga-factories for EV batteries in Europe.

The recent cooperation between Samsung and Hyundai for batteries reflect such a trend that emphasizes the importance of favoring practicality over the blind competition. This year, the partnership for EV batteries market is likely to evolve to the next level.

l Alternative Materials on the Rise

Meanwhile, active discussions are underway on the needs for alternative materials for EV batteries. Development is in place for solid-state battery, an evolved version of currently dominant lithium-ion batteries. Various companies are interested in metal-air batteries and lithium-sulfur batteries to complement or replace lithium-ion.

The debate on hydrogen cars, one of the biggest contenders for EVs when it comes to environmental sustainability, is getting into full swing. As the demand for internal combustion engines is decreasing, automakers are at crossroads: they have a decision to make on resource redistribution. Although EVs have clear advantages in price competitiveness and infrastructure, their disadvantages can also be spelled out: charge time and mileage. Hydrogen cars gain a competitive edge when it comes to charging time and mileage, however, in terms of its price and infrastructure, they are behind.

Given the variety of parts, materials, and infrastructure needed for each vehicle, for automakers, it’s all about weighing out the options. Nonetheless, the issue also has to do with establishing sound ecosystems for each stakeholder as well as building national policy relevant to the industry needs. Recently, hydrogen cars have piqued investor interests in Korea, China, and Japan. However, since EV industry is one step ahead, actively seeking to overcome the disadvantages of EVs by continuously improving the performance of batteries and materials, it looks like the future market for sustainable cars will be built around EVs. At least in Korea, however, the battle is not over. The competition between EVs and hydrogen cars will be the starting point to form a new order in the industry.

l Growth Potential and New Opportunities for Secondary Battery Materials Market

Due to the growth of the battery market, the demand for its core materials, cathode and anode materials will continue to expand, reaching 1 million-ton this year – from 780,000 tons last year.

▲POSCO ESM’s production line for anode materials in Gumi

As a result, the secondary battery material, the core new growth business of the POSCO group, has undergone many changes to move on to the next level. Through the merge of POSCO Chemtech and POSCO ESM (to be finalized on April 1, 2019) the company seeks to boost synergy of anode and cathode materials, and pursue large-scale pre-investment for production lines. The production capacity for anode materials is expected to grow to 74,000 tons by 2021 – from 24,000 tons last year. As for cathode materials, the capacity will expand to 62,000 tons by 2022 – from 8,000 tons last year.

l Embracing Rapid Restructuring across Industries

With the economic downturn and increasing competition, the mainstream industries in Korea, such as steel, petrochemicals, automobiles, and semiconductors, are likely to face bigger challenges. It is time to accelerate the transformation into new growth industries such as batteries and materials.

In order to stay ahead of the competition while minimizing potential damages in times of rapid changes, it is time to come up with adequate strategies and support systems to fully embrace the inevitable. Furthermore, growth can stagger at any time, and oversupply is always a possibility. Preparing for potential risk must be mandatory, not optional.

As a result, new innovations in battery technology are beginning to open up new possibilities for not just the automotive industry, but for consumer electronics, wearables, drones and much more. Such industries are positioned for growth in the Fourth Industrial Revolution, and supplying enough lithium to meet the growing demand through sustainable practices is posing a challenge.  

SEE ALSO: The Fuel of Tomorrow: Mining Lithium for Tomorrow’s Cars

New Developments in Lithium Batteries

Today, almost every automaker is invested in EVs, and it will be batteries and software, not brakes and engines, that will play a decisive role in the success of future fleets. The biggest challenge for battery manufacturers is to make a high-capacity battery that can charge in a short period of time, but still be lightweight and compact at the same time.

Solid-state lithium-ion batteries are lighter, more compact and safer than liquid-state batteries. (Source: UPS Battery Center)

Solid-state lithium-ion batteries are a feasible solution. These super-capacity batteries replace traditional semi-liquid electrolytes with solid electrolytes that allow for faster charging times (about 7 minutes) and are not susceptible to explosion on impact as liquid-state electrolytes are. Solid-state batteries can also operate in dynamic temperatures between -30 degrees Celsius and 100 degrees Celsius. Plus, they are far lighter and take up less space in an EV. Toyota has announced they will use solid-state lithium-ion batteries in their EVs starting from 2020.

Professor Yang’s flexible lithium-ion batteries are composed of stiff and flexible parts to resemble the human spine. (Source: eeNewsAnalog)

Besides cars, lithium-ion batteries are great for portable electronic devices, and a new invention looks to widen the applicability of the batteries. Assistant Professor Yuan Yang of Material Science and Engineering at Columbia University recently came up with a flexible type of lithium-ion battery that resembles the human spine. He first got the idea for the design while doing sit-ups at the gym when he noticed how his flexible spine allowed his body to move in various ways. Yang applied the idea to lithium-ion batteries by rearranging the traditional battery in a vertical structure made of stiff and flexible parts, just like the human spine. The end result was a flexible battery with more than 85 percent of the energy density found in a standard battery. The flexible and energy-dense batteries are expected to open up new possibilities for consumer technology designs and further accelerate the growing wearables market.

SolidEnergy Systems lithium-metal batteries are energy-dense and one of the smallest batteries available. (Source: Digital Trends)

There’s another up-and-coming invention that makes use of solid-state lithium batteries. SolidEnergy Systems recently received USD 34 million in funding to commercialize their lithium-metal batteries, bringing total funding to USD 50 million. The batteries have twice as much energy density as lithium-ion batteries, making them perfect for devices that have battery size limitations. By replacing graphite with lithium metal foil for the negative electrodes, the company was able to pack more energy into a smaller space. The resulting energy density is 450 watt hours per kilogram and 1200 watt hours per liter. For now, it is being sold to drone companies and the makers are working on lithium-metal batteries for wearables and EVs.

Sustainable Lithium Extraction

In the midst of development and advances in lithium batteries, the question to ask is where is all the lithium coming from, and is there enough to feed growing demand? The answer is yes, there is more than enough lithium in different parts of the world, but the problem is that there are not enough mines to extract all the lithium in demand.

Lithium is a growing source for jobs in South America due to the high demand. (Source: Twitter/@BrianDColwell)

More than half of the world’s lithium reserves are in South America, more specifically in Chile and Argentina, but Australia is the biggest producer. Even with new mines opening up at a frequent pace, lithium extraction isn’t easy. Political, social and environmental hurdles have led to unstable output. Coupled with the exponential growth of the EV market, the price of lithium carbonate has more than doubled from 2011 to 2016.

Another concern is the environmental impact of lithium extraction and production. Critics have pointed out that raw materials, such as lithium, used to produce eco-friendly batteries have a large carbon footprint on their own.

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

That’s why earlier this year, steelmaker POSCO opened up PosLX, Korea’s first lithium plant, as part of the move to expand its non-steel businesses and make headways into the batteries market. The new plant has an annual production capacity of 2,500 tons and will use POSCO’s innovative technology, developed in-house. POSCO’s eco-friendly extraction technology entails extracting lithium from water, and takes anywhere between 8 hours up to a month to complete. Traditional evaporation methods take 12 to 18 months to produce the same amount. Moreover, POSCO’s technology can obtain a purity rate of 99.9 percent, as well as a recovery rate of over 80 percent.

In addition, POSCO has developed a way to extract lithium phosphate, a raw material of lithium carbonate, from used rechargeable batteries. The lithium carbonate produced from recycled secondary batteries are equal in purity, charge, discharge efficiency and capacity as existing lithium carbonate, but at a lower cost to the environment.  

SEE ALSO: POSCO’s Innovation Shapes the Ever-Growing Lithium Market

Going forward, POSCO plans to increase its lithium production capacity to 40,000 tons per year to supply the increasing demand from new-growth industries and ensure a sustainable future of renewable energy.

Cover photo courtesy of Cleantechnica.

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.

POSCO continues to contribute to the growing steel industry by producing large amounts of high-quality steel for its partners, and has its sights on non-steel businesses as well. The continued efforts to stay ahead of global trends, provide solutions to partners as well as to produce the highest quality steel are what keep POSCO in the top ranks.

Here are 6 more memorable highlights from 2017 so far.

1. POSCO’s First Lithium Extraction Plant

On February 7th, POSCO opened its first lithium extraction plant, PosLX at Gwangyang Works in Korea. It is expected to produce 2500 tons of lithium carbonate per year, making POSCO the first company to produce lithium on a commercial scale in Korea.

The opening ceremony of PosLX

Traditionally, the process of extracting lithium takes 12 to 18 months. In comparison, POSCO’s new, sustainable technology only requires as little as 8 hours up to a maximum of one month to extract high-purity lithium. The materials produced at PosLX will supply LG Chem, Samsung SDI and POSCO ESM, a subsidiary company that specializes in cathode materials for secondary batteries.

2. Leading Supplier of Electric Steel Plates

On February 20, POSCO opened its newly-expanded, non-oriented silicon steel facility for producing environmentally-friendly electric vehicle drive motors. The expansion increased POSCO’s output of non-oriented silicon steel (Hyper NO) from 80,000 to 160,000 tons, making POSCO the leading supplier of electric steel plates both domestically and internationally.

POSCO CEO Ohjoon Kwon at the non-oriented silicon steel facility (Source: MK News)

The demand for environmentally friendly vehicles is growing, and with it the demand for top-grade electric steel plates. In 2020, the projected demand for such parts will reach more than 1 million tons. POSCO has its eyes on the market, aiming to develop high-quality, customized materials for electric vehicle manufacturers.

3. Release of POSCO’s GIGA STEEL Ad

In March, POSCO ran a nationwide TV ad for POSCO GIGA STEEL in Korea to showcase the superiority of POSCO’s next-generation automotive steel material. This is the first time POSCO put out a specific steel product and not the company brand at the forefront of an ad campaign. In order to convey the strength and light weight of the product, the advertisement included a strength test comparing GIGA STEEL to aluminum. The test proved POSCO GIGA STEEL to be over three times stronger than aluminum.

4. Commercialization of a High Manganese Steel Production Technology

In April, POSCO commercialized the world’s first high manganese steel production process technology using molten manganese ferroalloy (FeMn). This technology takes place at PosLM (POSCO Liquid Manganese), a heat insulation facility that can store high-purity molten ferromanganese alloy. The technology boosts profitability by reducing the processing time by half and increasing production efficiency by more than 10 percent using a non-solid type of molten iron.

Hot Liquid Steel

5.  Completion of 7CGL for POSCO GIGA STEEL

On April 26, POSCO completed the world’s first steel plate factory specifically for GIGA STEEL. 7CGL, which has an annual production capacity of 500,000 tons, is attracting attention as the world’s first factory to produce both GA (hot-dip galvannealed) and GI (hot-dip galvanized) steel plates among 1.5-class automobiles. POSCO secured its position as a global automotive steel plate maker through the completion of 7CGL, its 12th steel plate factory. POSCO has been able to reduce investment costs and secure cost competitiveness by carrying out both factory design and construction internally.

Opening ceremony for 7CGL (Source: Business Korea)

6. Completion of POSCO’s Steel Forming Laboratory

On May 11, POSCO completed their Steel Forming Laboratory at the POSCO’s Global R&D Center in Songdo, Korea, built to provide customized support for partners. POSCO is building a one-stop development system from technology development to production verification. At the core of this program is the advanced customer-oriented research infrastructure that can evaluate products in advance and develop leading technologies in a production environment similar to that of POSCO’s customers. This development will further strengthen POSCO’s solution marketing 2.0.

The Steel Forming Laboratory at POSCO’s Global R&D Center

Despite a difficult market environment, POSCO continues to provide high-quality steel products for its partners through close cooperation and customized research. Additionally, POSCO’s expansion into non-steel sectors will not only bring added value, but help POSCO stay ahead of the changes the fourth industrial revolution will bring.  

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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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.

POSCO CEO Ohjoon Kwon, fourth from left, with company executive during a ceremony to mark the construction of the steelmaker’s lithium processing plant in Salta, Argentina, February 14 (local time)

“We have brought our advanced and environmental-friendly technology to extract and process lithium,” said Kwon at the ceremony. “We will continue to expand our operations in Argentina and boost cooperation with our partners here to create a win-win solution for all.”

POSCO’s lithium processing plant will be located at Pozuelos Salt Lake, which rises 4,000 meters above sea level. It will have an annual processing capacity of 2,500 tons of high-purity lithium for rechargeable batteries, and will supply them to domestic and international mineral manufacturing enterprises that produce minerals for car batteries. Considering the fact that it takes an average of 40 kilograms of high-purified lithium to make a single electric car battery, this equates to about 60,000 electric cars a year.

Pozuelos Lake, which spans 106 square kilometers and is estimated to have about 1.5 million tons of lithium reserves, is considered to be an optimal location to produce lithium.

Pozuelos Salt Lake is considered to be an optimal location for producing lithium. POSCO plans to extract and process about 2,500 tons of lithium annually after completing the construction of the plant here by the end of this year.

Earlier this year, POSCO signed a supply contract with Lithea Inc. of Argentina, the company owning the mining rights of Pozuelo Salt Lake and securing the stable permissions to access the lake. POSCO also set a solid foundation for entering the lithium business through developing an independent technology that is economically-friendly.

The Pozuelo Salt Lake plant will use POSCO’s innovative and independent technology that dramatically reduces the lithium extraction period, which usually takes more than a year, through chemical reaction.

POSCO’s high-efficiency lithium extract technology, which was developed with support from the energy resource technology development project led by the Ministry of Trade, Industry and Energy in 2010, does not require a large area of salt farm compared to the conventional evaporation and extraction method, and is less affected by changes in climate. Moreover, since there is very little loss when extracting lithium, it is possible to extract the same amount of lithium, compared to the conventional process, even by using a less amount of salt water. Therefore, POSCO’s high-efficiency lithium extract technology is an economical and environmental-friendly technology.

POSCO’s lithium business is one of the main businesses that has taken the lead in developing production technologies since 2010, when POSCO CEO Ohjoon Kwon was the Director at the Research Institute of Industrial Science & Technology (RIST). Since the development of the company’s high-efficiency lithium extract technology in 2010, POSCO has been beefing up pilot production from 2 tons to 200 tons, while examining the economic viability of the technology.

The world’s lithium market has grown from 70,000 tons in 2002 to 170,000 tons in 2014, and is a promising market that is projected to grow to 270,000 tons by 2020. Of this, the lithium market for electric car batteries, which will be produced by POSCO, is expected to be 135,000 tons, accounting for half of the entire market. Nonetheless, the Korean battery manufacturers that depend entirely on lithium imports are currently suffering from unstable supplies and price hikes.

With an increase in sales of electric cars worldwide including China, which is aiming to further promote electric cars across the nation, the lithium industry is welcoming POSCO for its new lithium business. Due to the recent shortage of lithium supplies and price increases, global battery manufacturers are already starting to discuss the possibility of lithium supply contracts with POSCO.

Meanwhile, CEO Ohjoon Kwon had an exclusive meeting with Mauricio Macri, the president of Argentina, on February 15 following the ceremony marking the construction of the steelmaker’s lithium processing plant in Argentina. Kwon discussed POSCO’s excellent lithium extract technology and the technology development process. He also talked about future plans for building a consistent and cooperative relationship with Argentina for lithium development.

POSCO Lithium Business Progress

2010: Development of the world’s first independent lithium extract technology using chemical reaction

2011: Establishment and operation of pilot production facilities with RIST (Annual Capa: 2 tons)

– Process aim was 100% achieved and qualification process for enlargement was completed

2013: Completion of pilot production at Maricunga Salt Lake in Chile (Annual Capa: 20 tons)

2014: Completion of pilot production at Pozuelos Salt Lake in Argentina (Annual Capa: 20 tons)

2015: Completion of pilot production at Cauchari Salt Lake in Argentina (Annual Capa: 200 tons)

2016: Start of construction of lithium processing plant at Pozuelos Salt Lake in Argentina (Annual Capa: 2,500 tons); Projected to complete construction and begin production this year

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Today, we are living in a world of amazing products and technologies that go beyond our wildest imaginations. New things that alarm us pop up every other day, and it’s really a difficult task to keep up with all the latest trends. To help our readers out, Hello, POSCO prepared some of today’s most promising trends from secondary batteries to unmeltable steel. How about taking a glance into tomorrow’s technology together? 

A look into today’s leading trends in the advanced materials and energy industry

Thanks to the high enthusiasm and active investment on the part of POSCO and various companies in developing new business opportunities, Korea’s technology is making its way to the top.

Shall we take a closer look into Korea’s globally recognized advanced materials and energy sector?

#1. Secondary Batteries

Secondary batteries are known as one of the three most significant electronics of the 21st century, along with semiconductors and digital displays. Secondary batteries can be recharged and reused unlike the generic disposable kind. Corresponding to the rising interest in eco-friendly energy such as electric cars, the lithium secondary battery market soared 20% annually over the past five years.

According to a report by B3, a Japanese market research company, this year’s lithium ion secondary battery market is expected to increase 24% compared to last year.

Secondary batteries are classified by the material used; there are Nickel, lithium ion, lithium polymer, and nickel zinc batteries. Among these, the most promising is the lithium ion secondary battery which is widely used in various appliances including mobile electronic devices.

The Advantages of Environment-Friendly Secondary Batteries

 The most important reason secondary batteries are so influential in today’s energy industry is that its impact on the environment is minimal. Unlike fossil fuel, secondary batteries do not produce harmful emissions, making it an attractive energy source for cars. Also, because it does not require an internal combustion engine, there is no need to worry about making too much noise. Isn’t that wonderful?

From Automobiles to IT: The Various Applications of Secondary Batteries

Secondary batteries are thrown into the spotlight as the key to eco-friendly growth in various fields such as the automobile, IT and energy industries.

 From various IT devices to electric cars, secondary batteries are being used more and more frequently. Recently, secondary batteries are mostly used in mobile phones because they are light and suitable for storing high amounts of power.

In the automobile industry, the development and implementation of next-generation secondary batteries for electric cars will be a truly significant feat that will change the industry forever.

Game Changer: POSCO develops revolutionary lithium extraction technology

Korea is the world’s largest manufacturer of secondary batteries, but it has also been 100% dependent on imports for the core material lithium. To solve this problem, POSCO and the Research Institute of Industrial Science & Technology (RIST) jointly developed a revolutionary lithium extraction technology.

(POSCO’s Pilot Plant (Phase 2) located at the Maricunga project near the city of Copiapó, Chile)

The lithium extraction technology was developed after the successful installment of a pilot plant (phase 2) located at the Maricunga project near the city of Copiapó, Chile.

The chemical lithium extraction technology, which was developed by POSCO’s own research unit, reduces recovery time from around 12 months to just eight hours! It also increases the lithium recovery rate from a maximum of 30% using traditional evaporation ponds to more than 80%.

In a time when secondary batteries are in the limelight, POSCO’s new technology could possibly be a game changer in various next-generation industries such as electric cars and smart grids. We hope to lead the global green industry with this awesome technology!

#2. PosMAC, the Unmeltable Steel

(The demand for highly durable and cost-efficient PosMAC is on the rise in the solar panel industry)

We usually consider steel as vulnerable to rust and corrosion over time. However, Korea’s leading steelmaker POSCO has developed a revolutionary steel by the name PosMAC. PosMAC is free from rust and corrosion for 10 to even 50 years!

The researchers at POSCO felt the need to develop a highly durable steel suitable for use in sites vulnerable to corrosion such as livestock handling facilities or coastal structures. The result was a futuristic multi-purpose steel that not only ensured long-term stability, but also added to the cleanliness and aesthetic of structures.

PosMAC is highly durable to moisture, heat and various chemicals while being affordable. PosMAC is also highly resistant to alkali and ammonia, which makes it highly suitable for use in livestock handling facilities or in situations where components are in contact with concrete tar.

We expect the corrosion-free PosMAC to be a significant contribution to the steel market in areas struggling with rusty steel!

More information on PosMAC at Hello, POSCO Blog

• PosMAC: The Revolutionary Steel 

#3. Substituting Fossil Fuel with Marine Bioenergy

Last but not least is the marine bioenergy industry. Marine bioenergy is an alternative energy produced through the refinement and fermentation of marine biomass such as seaweed. By substituting fossil fuel, bioenergy aims to narrow the gap between energy supply and demand!

Korea is currently heavily dependent on imports for energy, with 97% of the country’s energy being imported. Thus, it is crucial to reduce the dependency while finding out a way to produce energy independently. Marine bioenergy has been thrown into the spotlight as a promising new alternative energy due to Korea’s geography being suitable for development.

The advantages of marine bioenergy is that there is no need to worry about depletion. Also, it can be used continuously once developed, and large-scale development is possible. Lastly, its impact on the environment is minimal. It will be great if Korea would be able to utilize its geographical advantage as a peninsula and develop the environment-friendly alternative energy in the future!