Posco inks MOU on lithium extraction in U.S. with Australian firm

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Posco inks MOU on lithium extraction in U.S. with Australian firm

Published: 30 Jun. 2025, 17:20 Updated: 30 Jun. 2025, 17:33

Audio report: written by reporters, read by AI

Posco's offices in Gangnam District, central Seoul, as pictured on March 17, 2015. [NEWS1]

Posco Holdings signed a memorandum of understanding with Australian mining company Anson Resources to demonstrate its direct lithium extraction (DLE) technology at a site in Green River City, Utah, the Korean steelmaker said Monday.

Under the agreement, Anson will provide the land where it holds mining rights to lithium-rich brine deposits, while Posco builds a facility to test the technology.

This marks the first time a Korean company is attempting lithium production on-site in North America. Posco did not specify the exact scale or amount of the investment in the Utah plant in its announcement.

Posco Group’s DLE process can extract lithium even from low-concentration brines, offering a more cost-effective alternative to conventional solar evaporation ponds, according to the company. Unlike traditional methods, which depend heavily on sunlight and weather conditions, Posco says its technology can be deployed regardless of climate or geography.

Posco plans to use the Utah pilot to commercialize the DLE technology it has been developing since 2016. The company also hopes to tap low-grade brine resources across North America.

Posco workers conduct on-site work at the Hombre Muerto salt pan in Salta, Argentina, where the firm sources lithium brine in this photo archived on Oct. 11, 2022. [POSCO HOLDINGS]

Lithium is a critical mineral for rechargeable batteries, which power electric vehicles and other clean energy applications.

Thanks to its high energy density, lithium-ion batteries allow devices to run longer on a single charge.

Market research firm SNE Research projects the global market for lithium-ion battery materials will grow from $79.4 billion in 2024 to $147.6 billion by 2030.

Posco has identified lithium as a core driver of its future business and has aggressively pursued overseas resource projects.

A view of the lithium demonstration plant at the Hombre Muerto salt pan in Argentina, which Posco acquired in 2018. [POSCO GROUP]

In 2018, it acquired mining rights to the Hombre Muerto salt pan in Argentina for $280 million.

Last year, it completed a plant in the nearby town of General Güemes to process lithium into lithium hydroxide. That facility produces 25,000 tons annually, enough to build batteries for around 600,000 electric vehicles.

“The DLE demo plant, which we plan to start building in 2026, is an investment to secure a critical technology for expanding our lithium business in North America,” a Posco Holdings representative said.

“Depending on the results, we will also consider forging a strategic partnership and pursuing additional cooperation with Anson Resources.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY OH SAM-GWON [[email protected]]