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Not sure how this will effect PLS Posco deal but it seems their plan is self supply


Posco poised to be major secondary battery player with complete value chain

2020.12.04 12:01:54 | 2020.12.04 12:02:24

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South Korea’s top steelmaker Posco found that the salt lake it purchased in 2018 in Argentina contains more lithium deposits than initially estimated, brightening the outlook of the company’s ambitious plan to complete the value chain for secondary battery to become a global big player.

Posco said on Thursday that a final review of the Hombre Muerto salt lake in Argentina that it purchased in 2018 showed on Monday that it contains 13.5 million tons of lithium, six times more than the initial estimation of 2.2 million tons upon purchase. The estimated reserve is enough to produce 370 million electric vehicles.

The review, which was carried out by global salt lake lithium consulting firm Montgomery & Associates, also showed that the salt lake contains an average of 921 milligrams of lithium concentration per liter – the world’s highest level.

Shares of Posco were trading 4.97 percent higher at 264,000 won on Friday.

Lithium is referred to as “white petroleum” as it is a core secondary battery cathode material that enables electric production and charging.

The latest review result has brightened the prospect of Posco`s plan to secure the complete value chain for secondary battery ranging from raw material sourcing to battery cell component manufacturing such as cathodes and anodes.

On top of lithium, Posco is seeking to nurture the business of high-purity nickels that are also essential in producing secondary battery cathode materials. The steelmaker plans to expand investment in environmentally-friendly nickel smelting processing development, using its proprietary technology to produce iron mold and remove impurities. Nickel plays an important role in expanding secondary battery driving range.

When it comes to graphite, a raw material for anodes, Posco seeks to diversify suppliers and clients by securing additional graphite mines in Africa and Australia. Currently, Posco depends on China for all of its graphite supply. The company plans to lower its dependence on Chinese raw materials to below 50 percent in the long run.

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Graphite is highlighted as a stable material that plays the role in reserving lithium ion released from cathode materials and releasing them to produce electricity.

Posco also plans to boost its green move by making inroads into recycling business with extracts of nickels, lithium, and cobalt from dead batteries.

Choi Jeong-woo, chairman of Posco, said that Posco is the only company in the world that would own a complete secondary battery material supply chain from lithium, nickel, and graphite materials to cathodes and anodes.

As part of efforts to complete the value chain, Posco Chemical that produces cathodes and anodes, issued 1 trillion won ($917.5 million) in new shares to raise capital last month.

Posco has set goals to create the secondary battery value chain that allows it to self-supply 220,000 tons of lithium and 100,000 tons of nickel by 2030 and establish a production system for 400,000 tons of cathodes and 260,000 tons of anodes to take up 20 percent of the global secondary battery material market and raise 23 trillion won in related revenue.

Posco has also been engaged in efforts to expand into the secondary battery market, for example, that of high-power all-solid-state battery that helps significantly increase driving range of electric vehicles and reduce charging time.
By Han Woo-ram and Lee Eun-joo