Posco Holdings signs lithium project deal with Jindalee Resources

Posco Holdings signed a memorandum of understanding (MOU) with Perth, Australia-based Jindalee Resources to jointly run a lithium project in the United States.

Under the non-binding agreement, Posco Holdings and Jindalee will conduct joint research for Jindalee's wholly-owned McDermitt lithium project on the Nevada-Oregon border.

Posco will collect samples of lithium clay from the lakebed to see if they can be used as materials to produce batteries.

Lithium is normally extracted from ores and brines, but lithium-rich clay has lately been considered a potential lithium resource.

Depending on the outcome, Posco Holdings said it may make an investment in the McDermitt project.

Since 2010, Posco Holdings has been cooperating with the Research Institute of Industrial Science & Technology to develop technologies to extract lithium from various sources including ores and used batteries.

The Korean company is constructing a 43,000-ton lithium plant in Gwangyang, South Jeolla, which is expected to be finished at the end of the year.

Two 25,000-ton facilities are under construction in Argentina, which will be completed in 2024 and 2025.

BY SARAH CHEA [chea.sarah@joongang.co.kr]