Posco Holdings said on Tuesday that it will begin producing lithium hydroxide in South Korea.
The new factory will use lithium carbonate extracted from brine in Argentina to produce the material, which is used to make electric vehicle batteries.
The factory will be built at Posco’s plant at Youlchon and have an annual capacity of 25,000 metric tonnes, enough to manufacture batteries that can power 600,000 units of EVs.
The factory will began operations in 2025 with an initial investment of 575 billion won. Posco Lithium Solution, a wholly-owned subsidiary of Posco Holdings, will handle the construction and funding.
Its annual capacity will be expanded to 100,000 metric tonnes by 2028, the South Korean company said.
Posco Holdings is building a lithium extraction plant at Salar del Hombre Muerto in Argentina.