POSCO completes second Argentine lithium plant, eyes 50,000-ton output
In short
POSCO Holdings held a completion ceremony on 6 October local time for the upstream stage of its second brine lithium plant near the Hombre Muerto salt flat in Argentina, the company said on 7 October. The plant has 23,000 tons of annual lithium carbonate capacity, and together with the existing first plant, POSCO's Argentine capacity reaches 48,000 tons. Carbonate will be shipped to a downstream plant under construction in South Korea's Yulchon industrial complex for conversion into 25,000 tons of battery-grade lithium hydroxide, giving a 50,000-ton brine-based hydroxide system once combined with the first plant's output.
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POSCO Holdings said it held a completion ceremony on 6 October local time for the upstream stage of its second brine lithium plant near the Hombre Muerto salt flat in Argentina, about 4,000 metres above sea level, and announced the completion on 7 October. The company said the event was attended by POSCO Group chairman Chang In-hwa, POSCO Argentina head Park Hyun, Argentine presidential chief of staff Karina Milei, federal chief of staff Diego Santilli, Salta governor Gustavo Sáenz, Catamarca governor Raúl Jalil, and Korean ambassador to Argentina Lee Jong-hwa. Yonhap reported that the Argentine presidential office also announced the completion through its official channels. [ 1 , 5 , 6 , 7 , 8 ]
The second plant's upstream stage was built with a 954 million dollar investment and has annual capacity of 23,000 tons of lithium carbonate, according to the company. Adding the operating first plant's 25,000 tons, POSCO's local Argentine lithium production capacity rises to 48,000 tons a year. [ 1 , 5 , 6 , 7 , 8 ]
The carbonate produced in Argentina is to be shipped to a downstream plant in the Yulchon industrial complex in South Jeolla, scheduled for completion in 2027, where it will be converted into 25,000 tons a year of battery-grade lithium hydroxide. POSCO Holdings said that combined with existing volumes this gives a 50,000-ton brine-based lithium hydroxide production system; Bloter reported that POSCO Lithium Solution is responsible for the downstream plant. Seoul Economic Daily said the 50,000 tons of high-purity hydroxide could be used in about 1.25 million electric vehicles, a figure that is not repeated elsewhere. [ 1 , 5 , 6 , 7 , 8 ]
POSCO Argentina signed an MOU with the Salta and Catamarca provincial governments on the day of the ceremony to pursue third and fourth plants, each with 25,000 tons of lithium carbonate capacity, with the provinces to cooperate on administrative support and permits. The company is targeting a 100,000-ton brine lithium production system by 2033, saying the expansion responds to growth in the energy storage system market driven by AI data centres and to rising LFP battery demand. [ 1 , 5 , 6 , 7 , 8 ]
The completion comes eight years after POSCO Group acquired the Hombre Muerto mining rights in 2018 and two years after it completed the first plant and began commercial production in 2024. Asia Economy, Yonhap and Kyunghyang Shinmun said the group began developing its own lithium extraction technology in 2010; Bloter and Yonhap reported that Chang, as head of the new business division from 2014, led pilot plant operations and technology development in Argentina. Seoul Economic Daily reported separately that the first plant recently turned its first profit, that POSCO Argentina obtained Argentina's RIGI investment incentive approval in July as the first Korean company to do so, and that it secured a 700 million dollar short-term credit line from IDB Invest in August. [ 1 , 5 , 6 , 7 , 8 ]
Chang said he had inspected sites since his time as new business division head in 2014 and felt deep emotion at reaching completion after overcoming many difficulties in the extreme environment at 4,000 metres. He said the completion brings POSCO Group a step closer to being a resource development company representing South Korea, and that it will continue to pre-emptively secure competitive resources, connect them to production and profit, and stably supply core minerals needed by national industry. [ 1 , 5 , 6 , 7 , 8 ]
Why it matters
The completion links Argentine brine resources to South Korean battery-material production, which the company and the outlets following it present as a step toward securing minerals for domestic industry. POSCO also agreed with two Argentine provinces to pursue two more plants, pointing to further investment in lithium carbonate as ESS and LFP battery demand is expected to grow.
Key facts
- POSCO Holdings held the completion ceremony for the upstream stage of its second brine lithium plant near the Hombre Muerto salt flat on 6 October local time and announced it on 7 October. [ 1 , 2 , 5 , 7 , 8 ]
- The second plant's upstream stage cost 954 million dollars and has annual capacity of 23,000 tons of lithium carbonate. [ 1 , 6 , 7 , 8 ]
- Adding the first plant's 25,000 tons, POSCO's Argentine lithium production capacity rises to 48,000 tons a year. [ 1 , 5 , 7 , 8 ]
- Carbonate from Argentina is to be sent to a downstream plant in the Yulchon industrial complex in South Jeolla, scheduled for completion in 2027, where it will be converted into 25,000 tons a year of battery-grade lithium hydroxide. [ 1 , 5 , 6 , 7 , 8 ]
- Combined with existing output, the company plans a system producing 50,000 tons a year of brine-based lithium hydroxide. [ 1 , 5 , 6 , 7 , 8 ]
- POSCO Argentina signed an MOU with the Salta and Catamarca provincial governments on the day of the ceremony for the third and fourth plants, each of 25,000 tons of lithium carbonate capacity. [ 1 , 5 , 6 , 7 ]
- The company targets a 100,000-ton brine lithium production system by 2033, aiming to meet ESS demand tied to AI data centre growth and LFP battery demand. [ 1 , 5 , 6 , 7 , 8 ]
- Chairman Chang In-hwa, who led the lithium project from his time as head of the new business division in 2014, attended along with Park Hyun of POSCO Argentina, Argentine officials including presidential chief of staff Karina Milei, and Korean ambassador Lee Jong-hwa. [ 1 , 3 , 5 , 6 , 7 , 8 ]
Confirmed by several sources
- The completion ceremony for the second plant's upstream stage took place on 6 October local time near the Hombre Muerto salt flat at an altitude of about 4,000 metres. [ 1 , 2 , 3 , 5 , 6 , 7 , 8 ]
- The second plant's upstream stage was built with a 954 million dollar investment and has annual capacity of 23,000 tons of lithium carbonate. [ 1 , 6 , 7 , 8 ]
- With the operating first plant's 25,000 tons, Argentine local lithium production capacity increases to 48,000 tons a year. [ 1 , 5 , 7 , 8 ]
- Carbonate produced in Argentina is to be processed at a downstream plant in the Yulchon industrial complex, scheduled for 2027, into 25,000 tons a year of battery-grade lithium hydroxide, for a combined 50,000-ton brine-based hydroxide system. [ 1 , 5 , 6 , 7 , 8 ]
- POSCO Argentina signed an MOU with the Salta and Catamarca provincial governments for the third and fourth plants, each with 25,000 tons of lithium carbonate capacity, while targeting 100,000 tons of brine lithium by 2033. [ 1 , 5 , 6 , 7 ]
- POSCO Group acquired the Hombre Muerto mining rights in 2018 and completed its first plant, with 25,000 tons of annual capacity, in 2024. [ 1 , 5 , 6 , 7 , 8 ]
- Chairman Chang In-hwa said the completion brings the group closer to being a resource development company representing South Korea and that it will pre-emptively secure competitive resources and stably supply core minerals needed by national industry. [ 1 , 6 , 7 , 8 ]
Still unclear
- When the second plant's upstream stage will begin full commercial operation. Documents say the company will pursue early normal operation but give no start date.
- The investment size of the third and fourth plants, their schedule and whether a final investment decision has been made. Only an MOU with the two provincial governments and a 2033 target are stated; no figures or dates for the plants themselves are given.
- POSCO Argentina's RIGI approval in July and the 700 million dollar IDB Invest credit line in August. Both are reported by only one outlet, Seoul Economic Daily.
- That the Argentine presidential office relayed the completion news through official channels. Stated by only one outlet, Yonhap.
- Yonhap describes the investment as about 9,540 million dollars in garbled wording, while other outlets put it at 954 million dollars. The figure differs in form between outlets; the 954 million dollar amount is supported by more documents.
What local media are saying
Timeline, local time
- POSCO Argentina holds the completion ceremony for the second brine lithium plant's upstream stage near the Hombre Muerto salt flat; POSCO Argentina signs an MOU with the Salta and Catamarca provincial governments on the third and fourth plants. [ 1 , 5 , 7 ]
- Asia Economy reports the ceremony, the 954 million dollar investment, the 23,000-ton capacity and the plan for a 50,000-ton hydroxide system. [ 1 ]
- Chosun Ilbo and Newsis report the completion and the five-ton-scale production system framing the chairman's resource bet. [ 2 , 3 ]
- Bloter reports the 48,000-ton Argentine capacity and the value chain linking the salt flat to Yulchon. [ 5 ]
- Seoul Economic Daily reports the ceremony, the 2033 100,000-ton target and POSCO Argentina's July RIGI approval and August IDB Invest credit line. [ 6 ]
- Yonhap reports the ceremony and notes that the Argentine presidential office also announced it. [ 7 ]
- Kyunghyang Shinmun reports POSCO's 48,000-ton lithium carbonate production system in Argentina. [ 8 ]