Posco Pursues Direct Lithium Production in North America for the First Time
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On June 30, 2025, Posco Holdings announced its plans to test the feasibility of directly producing lithium, a crucial component for electric vehicle batteries. This initiative underscores the importance of establishing a supply chain in North America, particularly as companies seek to reduce reliance on China.
In collaboration with Anson Resources, a natural resource developer from Australia, Posco will begin constructing a demonstration plant next year in Green River City, Utah. The facility will assess whether Posco’s Direct Lithium Extraction (DLE) technology can be effectively implemented for large-scale commercial production. Unlike traditional lithium extraction methods that rely on the natural evaporation of brine in vast ponds, DLE is an innovative and cost-effective process that selectively extracts lithium from low-concentration brine lakes.
This project represents a significant milestone, as it is the first time a South Korean company has initiated direct lithium production efforts in North America. In contrast, Posco’s domestic competitors, such as LG Chem, have mainly focused on securing supply agreements with U.S.-based lithium producers rather than establishing local production.
On the same day, Posco and Anson Resources signed a memorandum of understanding, which stipulates that Anson will supply raw materials for lithium and provide the construction site, where it holds mining rights for lithium brine. Although further details about the project, such as its timeline and investment amount, have not been disclosed, Posco expressed its goal: “By successfully operating the demonstration plant in the U.S., we aim to commercialize the DLE technology we have developed since 2016.” The company plans to utilize this technology to invest in and commercialize undeveloped lithium brine lakes throughout North America.
According to the World Population Review, the United States ranked third in the world for lithium deposits in 2023, following Bolivia and Argentina. This initiative aligns with Posco Holdings’ strategy, spearheaded by CEO Chang In-hwa, to secure additional lithium resources outside of China, which currently dominates the global lithium hydroxide market. This strategy, termed “2 Core + New Engine,” emphasizes the company’s focus on its core steel and battery materials businesses while also fostering new growth engines.
Currently, Posco Holdings has an annual production capacity of 68,000 metric tons of lithium hydroxide, sufficient to manufacture batteries for approximately 1.6 million electric vehicles. This includes 25,000 tons from its brine lithium plant in Argentina and 43,000 tons from its ore lithium plant located in the Yulchon Industrial Complex in South Jeolla Province.
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