Posco Argentina, a subsidiary of South Korean industrial giant POSCO Holdings, is establishing itself as a significant producer of lithium hydroxide for electric vehicle (EV) battery cathodes. Operating in the Hombre Muerto Salt Lake area across Argentina’s Salta and Catamarca provinces, the company manages substantial lithium extraction and processing operations. Since its establishment through POSCO Holdings’ acquisition of mining rights in 2018, Posco Argentina has developed extensive facilities for lithium production, including a state-of-the-art plant in Güemes, Salta Province, with an annual production capacity of 25,000 tons of lithium hydroxide.
Battery Technology
Posco Argentina’s primary contribution to battery manufacturing centers on its lithium hydroxide production capabilities. The company utilizes proprietary extraction technology that includes advanced electrodialysis processes to generate high-purity lithium hydroxide efficiently. This material serves as an essential component in EV battery cathodes, particularly for high-performance batteries used in premium electric vehicles.
The Güemes facility implements GEA’s specialized evaporation and crystallization technology, which optimizes production while reducing waste and energy consumption. This system ensures consistent quality in lithium hydroxide crystal production. The facility’s output can support the manufacturing of batteries for approximately 600,000 electric vehicles annually, making it a substantial contributor to the global EV supply chain.
The company’s technical processes integrate seamlessly with POSCO Holdings’ broader battery materials business, spanning from raw material extraction to advanced material production. This vertical integration strengthens the company’s position in international battery supply networks and supports the development of next-generation battery technologies.
Recent Projects
In late 2024, Posco Argentina completed its first lithium hydroxide plant in Güemes, marking a significant achievement in South American lithium processing. The company has initiated the second phase of expansion, scheduled for completion by late 2025, which will add another 25,000 tons of annual production capacity. Additionally, Posco Argentina formed a Cooperative Development Agreement with Lithium South Development Corporation for the HMN Li Project, expanding their resource base in the region.
Investors
The primary investment comes from POSCO Holdings Inc., which acquired the initial mining rights for $280 million in 2018. Financial support includes backing from the Export-Import Bank of Korea (KEXIM) and the Korean Trade Insurance Corporation (K-SURE). Several international financial institutions, including BNP Paribas, Citibank, Crédit Agricole, JPMorgan Chase, HSBC, and Bank of America, provide additional funding through various loan arrangements.
Business Details
Location: Salta, Argentina
Website: https://poscoargentina.com
LinkedIn: https://www.linkedin.com/company/posco-argentina/
