Posco boosts battery business with new lithium hydroxide factory

Home > Business > Industry

Posco boosts battery business with new lithium hydroxide factory

Published: 29 Nov. 2023, 17:03

SARAH CHEA
chea.sarah@joongang.co.kr

Executives and officials from Posco Group, Pilbara Minerals and the Korean government including Posco Holdings Chairman Choi Jeong-woo, fifth from left, take a photo at a ceremony celebrating the company's completion of a lithium hydroxide factory in South Jeolla on Wednesday. [POSCO HOLDINGS]

Posco Holdings completed its first domestic lithium hydroxide factory in South Jeolla Wednesday in its latest effort to bolster its battery business.

The plant, located in an industrial complex in Suncheon, South Jeolla, is able to produce 21,500 tons of lithium hydroxide, a key material of EV batteries. The plant was built through Posco-Pilbara Lithium Solution, a joint venture between Posco Holdings and Australian miner Pilbara Minerals.

The venture plans to build a second lithium hydroxide factory with the same capacity in 2024.

The 43,000 tons of lithium hydroxide is enough to make batteries for one million EVs.

On the same day, Posco also finished the construction of a non-oriented electrical steel plant at its steel complex in Gwangyang, South Jeolla.

Non-oriented electrical steel is used in electric motors to realize high efficiency. In particular, non-oriented electrical steel can reduce power loss for motors and is used for eco-friendly automobiles and home appliances. The plant will have an annual capacity of 150,000 tons.

Posco said it plans to complete a second non-oriented electrical steel factory in Gwangyang, which would bring its combined production capacity of steel products to 400,000 tons by 2024.

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