Posco launches U.S. pilot for lithium extraction

Posco Group, which has identified secondary battery materials as its next core growth engine, is launching a pilot project to directly produce lithium in the United States.

On June 30, Posco Holdings announced that it had signed a memorandum of understanding with Australian resource developer Anson Resources to build and operate a demonstration plant for Direct Lithium Extraction, or DLE, in the U.S. This marks the first time a South Korean company will carry out a DLE pilot project in North America. The demo plant will be constructed on Anson’s brine lithium claims in Green River City, Utah.

DLE is considered a next-generation lithium extraction technology. Unlike the traditional solar evaporation method, which requires large artificial ponds and takes 18 to 24 months in areas with abundant sunlight, DLE can extract lithium directly from brine in just one to two days. It can also process lower-concentration sources without the evaporation step, allowing for faster and more cost-effective lithium production.

Posco Holdings is currently restructuring its business portfolio under Chairman Chang In-hwa’s “2 Core + New Engine” strategy, with a strong focus on expanding the supply chain for lithium and other secondary battery materials. The company has already completed two major production facilities: a brine-based lithium plant in Argentina with an annual capacity of 25,000 tons, and a spodumene-based lithium plant in the Yulchon Industrial Complex in South Jeolla Province with an annual capacity of 43,000 tons. Together, these plants can supply enough lithium hydroxide to power about 1.6 million electric vehicles per year.

By commercializing DLE, Posco aims to actively invest in and develop untapped lithium brine assets in North America while strengthening a stable regional supply chain.


Jae-Hyeng Kim monami@donga.com