Roskill reports that Korean steel-maker Posco has started commercial production of lithium carbonate in Gwangyang, with a 2,500 t/y capacity plant aiming to supply domestic battery material manufacturers, including Posco’s subsidiary Posco ESM. PosLX, as the plant is known, uses a proprietary extraction technology developed by Posco. Feedstock for PosLX is lithium phosphate, currently sourced from battery recycling companies. Current Posco CEO Ohjoon Kwon was part of the team developing the extraction technology, and lithium has become one of Posco’s key diversification projects under his leadership.
Posco has also developed the technology to produce lithium phosphate from brine without the need for evaporation, dramatically reducing the period to extract lithium; brine will form the future raw materials supply strategy for PosLX as recycled phosphate supply is limited. Posco pulled out of an agreement with Lithium Americas to develop the Cauchari salar in Argentina in 2015, and subsequently announced plans in early 2016 to construct a small-scale extraction plant at Lithea’s Pozuelos salar; however, the current status of that operation is unclear. Posco also had an MoU with Pure Energy Minerals, which is evaluating deposits south of Albemarle’s Silver Peak operations in the Clayton Valley, Nevada, but Pure Energy is progressing its feasibility study on this asset using Tenova Bateman’s lithium extraction technology. Pure Energy recently optioned the Pocitos salt in Argentina, which might give Posco another option in Argentina.
“Our vision and enthusiasm for our future growth business enabled us to make this achievement in spite of many difficulties and limitations,” said the CEO. “We are planning to foster future new growth businesses by differentiating our technological competitiveness in the energy material business such as lithium for batteries, the development of high purity nickel and positive electrode materials for cathode materials as well.”
“Korea imports all lithium carbonate for batteries despite being a world-class producer of secondary batteries,” said Jong-joo Kim, the director of the Ministry of Trade, Industry and Energy. “Today’s completion of the plant will empower POSCO to produce lithium carbonate for batteries on its own, relieving secondary battery makers of worries about securing quality raw materials.”
The PosLX plant will produce 2,500 t/y of lithium carbonate and supply it to POSCO ESM which produces cathodes for secondary batteries, and LG Chem and Samsung SDI, manufacturers of secondary batteries. Roughly 2,500 t of lithium carbonate can be used to produce about 70 million laptop batteries. Korean rechargeable battery makers have relied on imports because Korea is devoid of domestic lithium suppliers, but POSCO’s PosLX Plant will now be able to solve Korean rechargeable battery makers’ difficulties in securing raw material supplies.
Posco ESM, meanwhile, has also has started supplying Posco Gradient-Nickel Cobalt Manganese (PG-NCM), a high-capacity cathode for lithium-ion batteries used in EVs, to LG Chem after commercialising production in January. Posco raised its stake in Posco ESM to 75% through purchase of new issues last month to ramp up its secondary battery business.
