Posco Holdings has announced plans to test its Direct Lithium Extraction (DLE) technology in North America, aiming to strengthen its supply chain amid efforts to reduce dependency on Chinese sources. In collaboration with Anson Resources, an Australian natural resource developer, Posco will begin constructing a demonstration plant in Green River City, Utah, next year. The facility will assess the viability of using DLE to extract lithium from low-concentration brine lakes on a commercial scale.
Traditional lithium extraction relies on solar evaporation in large ponds, a time-consuming and weather-dependent process. By contrast, DLE offers a more efficient approach by selectively separating lithium directly from brine. Posco has been refining this technology since 2016 and intends to leverage the demonstration plant’s results to pursue further investments and production across North America.
Earlier this week, Posco and Anson Resources signed a memorandum of understanding under which Anson will supply the lithium-bearing brine and provide the site, where it holds mining rights. While specific timelines and investment figures have not been disclosed, Posco emphasized that successful operation of the U.S. demonstration plant would mark a crucial step toward commercializing its DLE process.
The initiative represents the first instance of a South Korean company moving to produce lithium directly in North America. Other domestic competitors, including LG Chem, have largely focused on securing off-take agreements with U.S. producers rather than establishing local extraction facilities.
According to World Population Review, the United States ranked third globally in lithium deposits in 2023, behind Bolivia and Argentina. Posco’s venture aligns with its “2 Core + New Engine” strategy under CEO Chang In-hwa, which emphasizes the company’s core steel and battery materials businesses while developing new growth areas.
Posco Holdings currently holds an annual production capacity of 68,000 metric tons of lithium hydroxide—sufficient for batteries in roughly 1.6 million electric vehicles. This capacity includes 25,000 tons from its Argentina brine plant and 43,000 tons from its ore lithium plant in the Yulchon Industrial Complex in South Jeolla Province.
Source: The Korea Herald
