POSCO 'Material Independence'… Builds a lithium plant in Gwangyang
Enter article 2019.09.03. 5:47 pm 40,000 tons of lithium production
worth 800 billion
Supply to 400,000 electric vehicles started in March next year
POSCO will build a 40,000 ton lithium refinery plant in Gwangyang, Jeonnam. In addition to the 25,000-ton plant in Argentina, the company plans to have a high-purity lithium production system of 65,000 tons by 2022. The industry estimates that POSCO's domestic plant construction is meaningful in achieving 'material independence' of high-purity lithium for batteries, which has been largely dependent on imports from China. Choi Jung-woo, chairman of POSCO Group (pictured), said, “We will achieve KRW 17 trillion in sales and 20% of the global market share in battery materials by 2030.”
Joint investment with Australian lithium mining company
According to the industry on the 3rd, POSCO agreed to invest about 800 billion won in Gwangyang Yulchon Industrial Complex with Australia's lithium mining company, Pilar Minerals, in March next year. The joint venture rate is 79% for POSCO and 21% for Pilbara. POSCO is operating a pilot plant in Gwangyang that can produce 2500 tons of high-purity lithium annually. An official from POSCO explained, “We started producing high-purity lithium at the pilot plant last April and increased the yield to over 80%, so we can start commercial production upon completion of the new plant.”
POSCO plans to finalize a new plant construction plan after the board of directors' resolution. Completion of the new plant is in 2020. 40,000 tons can supply 400,000 batteries of high-performance electric vehicles. Last year, global electric car sales were around 2 million units. Currently, cathode materials makers such as Ecoprobe and Cosmo New Materials produce some high-purity lithium, but most of them depend on imports. Last year, imports reached 12,344 tons, $ 230 million.
Lithium is a material that generates electricity in secondary batteries. Secondary batteries, unlike primary batteries, are rechargeable batteries that can be recharged. Most rechargeable batteries used in electric vehicles and mobile phones are lithium ion batteries with high output. Lithium enters the battery positive electrode material (+) and then moves to the negative electrode material (-) when charging, and moves back to the positive electrode material when power is generated.
Cathode materials account for about 40% of battery prices. In the POSCO Group, POSCO Chemicals operates cathode materials plants in Gwangyang and Gumi, Gyeongbuk, and POSCO in Zhejiang, China. POSCO Chemical also produces anode materials.
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Possession of more than 100 patents for secondary batteries
POSCO is fostering secondary battery materials as food for the future. In 2010, he developed the world's first technology to extract high purity lithium by reacting brine with lithium ore.
Choi, who took office in July last year, is putting more energy into the materials business. At the end of last year's reorganization, the material business was upgraded to a new growth division at the same level as the steel division. In June, the company established a secondary battery material research center.
POSCO Research Institute predicts that global demand for rechargeable lithium batteries will increase from about 250,000 tons this year to 820,000 tons in 2025. However, it is expected that lithium supply will be short of demand because large-scale investment is needed in securing mines and constructing factories.
POSCO bought a 4.7% stake in Pilbara for US $ 79.5 million (approximately 65 billion won) in February last year to secure stable lithium ore. Pilbara has a mine with 226 million tons of lithium ore.
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