POSCO Holdings has taken a significant step in the global lithium supply chain by launching a demonstration project for direct lithium extraction (DLE) technology in North America. This initiative marks the first time a Korean company has ventured into this space, signaling a strategic pivot in the company’s approach to securing critical minerals. The project, a collaboration with Australian resource development company Anson Resources, will establish a demo plant in Green River City, Utah, where Anson holds lithium brine rights. The plant aims to evaluate the commercial viability of POSCO’s DLE technology, a move that could reshape the company’s future in the lithium market.
The demonstration plant is a cornerstone of POSCO Group’s secondary battery materials strategy, which focuses on securing additional lithium resources and advancing technological competitiveness. Under the ‘2 Core + New Engine’ strategy, POSCO is reshaping its business portfolio with a strong emphasis on expanding the lithium supply chain. The company’s investment in DLE technology is particularly noteworthy given the limitations of conventional lithium extraction methods. Traditional solar evaporation ponds, while effective in regions with strong sunlight, are not viable in many parts of North America. DLE technology, on the other hand, enables efficient extraction of lithium from low-concentration brine without the need for large-scale evaporation ponds, making it a critical technology for developing lithium resources in the region.
POSCO Holdings’ decision to invest in DLE technology is part of a broader trend in the mining industry. As global lithium producers increasingly turn to DLE to unlock low-grade brine resources previously considered uneconomical, POSCO is positioning itself at the forefront of this technological shift. The company’s DLE demo plant, set to break ground next year, represents a major strategic investment in future-critical technologies essential to the growth of its lithium business in North America.
Under the memorandum of understanding (MOU) signed on 30 June, Anson Resources will provide the lithium feedstock and the project site, while POSCO Holdings will conduct a full-scale evaluation of the business potential of its DLE technology. Depending on the results of the demonstration, the two companies will consider forming a strategic partnership and exploring further collaboration. This collaboration could pave the way for POSCO to accelerate investment and commercialisation efforts for untapped lithium brine resources across North America.
POSCO Holdings has already made significant strides in the lithium market with the launch of two major lithium production facilities. A 25,000 tpy brine-based plant in Argentina and a 43,000 tpy hard rock lithium plant in the Yulchon Industrial Complex in South Korea provide an annual lithium hydroxide production capacity of 68,000 t, enough to power approximately 1.6 million EVs. The successful operation of the US demo plant could further bolster POSCO’s position in the global lithium supply chain.
The implications of POSCO’s investment in DLE technology extend beyond the company’s immediate business objectives. As the demand for lithium continues to grow, driven by the global shift towards electric vehicles and renewable energy, the need for efficient and sustainable extraction methods becomes increasingly urgent. DLE technology offers a promising solution to this challenge, and POSCO’s demonstration project could set a new standard for the industry.
Moreover, the collaboration between POSCO and Anson Resources highlights the growing importance of international partnerships in the mining sector. As companies seek to secure critical minerals and advance technological innovation, cross-border collaborations are becoming increasingly common. This trend is likely to accelerate in the coming years, shaping the future of the mining industry and the global supply chain.
In conclusion, POSCO Holdings’ demonstration project for DLE technology in North America represents a significant development in the lithium market. The project not only underscores the company’s commitment to securing additional lithium resources and advancing technological competitiveness but also highlights the growing importance of DLE technology in the mining industry. As the global demand for lithium continues to rise, POSCO’s investment in DLE technology could pave the way for more sustainable and efficient extraction methods, setting a new standard for the industry.