POSCO Holdings Expands Argentina Lithium Capacity to 48,000 Tons

POSCO Holdings Completes Second Lithium Carbonate Plant in Argentina

POSCO Holdings has completed a lithium carbonate production facility at its second lithium plant near Argentina's Hombre Muerto Salt Lake, expanding its commercial lithium production operations in the country. The facility uses brine from the salt lake as its feedstock and represents a total investment of USD 954 million. Designed for annual production of 23,000 metric tons of lithium carbonate, the second plant increases POSCO Holdings' combined commercial lithium carbonate production capacity in Argentina to 48,000 metric tons per year when added to the existing first plant. The development strengthens the company's production base for lithium compounds used in battery supply chains and supports its longer-term plans to expand lithium production from salt lake brine.

Argentina Lithium Capacity Rises to 48,000 Metric Tons Annually

The newly completed facility has an annual lithium carbonate production capacity of 23,000 metric tons. With the existing first plant included, POSCO Holdings now has combined commercial production capacity of 48,000 metric tons per year in Argentina. The USD 954 million investment supports the company's expansion around the Hombre Muerto Salt Lake, where brine provides the raw material for production. Lithium carbonate is an important intermediate material for lithium-based battery supply chains, and the additional output increases the volume POSCO Holdings can process through its broader production network. The announcement confirms the plant's completion and capacity, although it does not specify its current utilization rate or the timing of production ramp-up.

South Korea Facility to Convert Lithium Carbonate Into Battery-Grade Lithium Hydroxide

POSCO Holdings plans to convert lithium carbonate produced at the second Argentina plant into approximately 25,000 metric tons of battery-grade lithium hydroxide annually. The conversion is scheduled to take place at a facility in the Yulchon Industrial Complex in Jeollanam-do, South Korea, with completion planned for 2027. Production from the second plant will contribute to the company's downstream lithium hydroxide operations alongside output from the first plant. Once the planned production arrangement is established, POSCO Holdings expects total annual lithium hydroxide production capacity to reach 50,000 metric tons. The announced figures describe planned processing capacity and do not establish that the South Korean conversion facility is already operational.

POSCO Holdings Plans Third and Fourth Lithium Plants

Following completion of its second lithium plant in Argentina, POSCO Holdings plans to accelerate new investments in its third and fourth plants. Each planned facility is expected to have annual lithium carbonate production capacity of 25,000 metric tons. These projects form part of the company's broader strategy to increase lithium production derived from salt lake brine. POSCO Holdings aims to raise its annual capacity for this category of lithium production to 100,000 metric tons by 2033. The target depends on the planned expansion program, and the announcement does not provide individual construction schedules, investment amounts, or commissioning dates for the third and fourth plants. The stated capacity goal therefore represents a longer-term objective rather than current operating output.

Integrated Lithium Production Strategy Connects Argentina and South Korea

POSCO Holdings' announced plans connect lithium carbonate production in Argentina with battery-grade lithium hydroxide conversion in South Korea. The Argentina facilities use salt lake brine as feedstock, while the planned Yulchon Industrial Complex facility is intended to process lithium carbonate into lithium hydroxide. This arrangement links upstream material production with downstream chemical processing across the two countries. The second Argentina plant increases commercial lithium carbonate capacity in the country to 48,000 metric tons annually, while the planned South Korean facility is expected to support total lithium hydroxide capacity of 50,000 metric tons per year alongside production from the first plant. Further expansion through the third and fourth plants is intended to support POSCO Holdings' 2033 production target.

Industry Impact & Outlook

POSCO Holdings' expansion adds production capacity to its lithium supply chain and links Argentine brine resources with planned battery-grade lithium hydroxide processing in South Korea. For the battery materials sector, the development illustrates the importance of coordinating raw-material production with downstream conversion capacity rather than expanding extraction alone. The planned third and fourth plants could further increase the company's ability to supply lithium compounds, provided the projects proceed as intended. Its target of 100,000 metric tons of annual salt lake brine-derived lithium capacity by 2033 remains a future objective, while the South Korean conversion facility is scheduled for completion in 2027. Actual output growth will depend on project execution and the establishment of the planned processing operations.

Frequently Asked Questions

What has POSCO Holdings completed in Argentina?
POSCO Holdings has completed a lithium carbonate production facility at its second lithium plant near the Hombre Muerto Salt Lake in Argentina. The facility uses salt lake brine as its feedstock and involved a total investment of USD 954 million. It has an annual production capacity of 23,000 metric tons of lithium carbonate. Together with the existing first plant, the company's commercial lithium carbonate production capacity in Argentina has increased to 48,000 metric tons per year. The announcement confirms completion but does not specify the facility's current utilization rate.

How much lithium carbonate can POSCO Holdings produce in Argentina annually?
POSCO Holdings has combined commercial lithium carbonate production capacity of 48,000 metric tons annually in Argentina following completion of its second lithium plant. The new facility contributes 23,000 metric tons of annual capacity, while the remainder comes from the existing first plant. Both facilities are associated with the company's operations near the Hombre Muerto Salt Lake, where brine serves as the feedstock. The company plans additional expansion through third and fourth plants, each designed for 25,000 metric tons annually. Its longer-term target is 100,000 metric tons of salt lake brine-derived lithium capacity by 2033.

How much did the second Argentina lithium plant cost?
The second lithium carbonate production facility developed by POSCO Holdings near Argentina's Hombre Muerto Salt Lake involved a total investment of USD 954 million. The completed facility uses brine from the salt lake as its feedstock and has annual production capacity of 23,000 metric tons of lithium carbonate. Its addition increases the company's combined commercial lithium carbonate production capacity in Argentina to 48,000 metric tons per year. The announcement provides the total investment figure but does not break down spending by construction, equipment, infrastructure, or other project components.

Where will POSCO Holdings produce battery-grade lithium hydroxide?
POSCO Holdings plans to produce battery-grade lithium hydroxide at a facility in the Yulchon Industrial Complex in Jeollanam-do, South Korea. The facility is scheduled for completion in 2027 and is intended to convert lithium carbonate from the company's second Argentina plant into approximately 25,000 metric tons of lithium hydroxide annually. Combined with production from the first plant, the planned arrangement is expected to establish total annual lithium hydroxide production capacity of 50,000 metric tons. The source describes this as a planned processing operation, not a facility that has already completed construction.

What are POSCO Holdings' plans for its third and fourth lithium plants?
POSCO Holdings plans to accelerate investment in its third and fourth lithium plants, with each facility designed for annual lithium carbonate production capacity of 25,000 metric tons. These projects are intended to expand the company's production of lithium derived from salt lake brine. The company aims to increase its annual capacity in this category to 100,000 metric tons by 2033. The announcement does not provide specific construction start dates, investment amounts, or commissioning schedules for either planned facility. Their contribution to future output will depend on the progress and execution of the expansion program.

What is POSCO Holdings' lithium production target for 2033?
POSCO Holdings aims to reach annual production capacity of 100,000 metric tons for lithium derived from salt lake brine by 2033. The target forms part of its plan to expand beyond the completed second plant in Argentina through additional third and fourth facilities. Each of those planned plants is expected to provide 25,000 metric tons of annual lithium carbonate capacity. The company is also developing downstream lithium hydroxide processing capacity in South Korea. The 2033 figure is a stated future capacity objective, rather than a description of the company's current annual production.

How are POSCO Holdings' Argentina and South Korea lithium operations connected?
POSCO Holdings plans to connect lithium carbonate production in Argentina with downstream lithium hydroxide conversion at the Yulchon Industrial Complex in South Korea. The Argentina facilities use brine from the Hombre Muerto Salt Lake as feedstock, while the South Korean facility is scheduled to convert lithium carbonate into battery-grade lithium hydroxide. The conversion plant is expected to be completed in 2027, with planned annual output of approximately 25,000 metric tons from the second plant's material. Together with production from the first plant, the company expects total lithium hydroxide capacity to reach 50,000 metric tons annually.