Located in the lithium triangle area of the Puna region in northwestern Argentina, accounting for more than 50% of global lithium production, it is one of the largest and highest-quality undeveloped brine deposits in the world, with significant expansion potential. Regarding the transaction, Posco stated that the move will provide stable lithium supply to its battery materials manufacturing subsidiary POSCO ES Materials.
Recently, Galaxy Resources announced that it will transfer its Salar del Hombre Muerto, located on the Puna Plateau between Catamarca and Salta provinces in northern Argentina, for $ 280 million. For steel giant Posco (POSCO), the mine is located in Galaxy's world-class Sal de Vida project in Argentina.
Martin Rowley, chairman of Galaxy Resources, said: "The large amount of cash obtained from the transaction with Posco will support the development of the company's Sal de Vida salt lake lithium project in Catamaca, Argentina. Battery-grade lithium carbonate project with an annual capacity equal to 25,000 tons, we will reserve 100% of the reserves to develop the relevant projects, which will not include any estimated resources included in the mineral rights sold to POSCO. This transaction is for us and Morgan Chase is running parallel formal procedures to provide greater flexibility. We look forward to working closely with POSCO on various projects to achieve long-term mutual benefit. As the resources of Galaxy and POSCO cover Catamaca and Salta provinces The above transaction means that two new lithium projects will be developed at the same time in Salar del Hombre Muerto, making this project more strategic and bringing greater returns to stakeholders in the region . "
It is reported that Sal de Vida, located in the lithium triangle area of the Puna region in northwestern Argentina, accounts for more than 50% of global lithium production, is one of the largest and highest-quality undeveloped brine deposits in the world, and has significant expansion potential. Regarding the transaction, Posco stated that the move will provide stable lithium supply to its battery materials manufacturing subsidiary POSCO ES Materials.
Posco's road to lithium battery development
Established in 1968, South Korea's Posco Iron and Steel Company (POSCO) is one of the world's largest steel manufacturers. It has the world's first annual output of 16 million tons of Gwangyang Steel Plant and the world's second annual output. 12 million tons of Pohang Iron Works. In June 2018, the CEO of Posco Steel Choi Jeong-woo was appointed as the company's new chairman, asking the company to shift its strategic focus from steel production and sales to the development and operation of lithium and biotechnology.
It is reported that, under the leadership of the previous chairman Kwon Oh joon, Posco Iron and Steel Co., Ltd. has made lithium development as the company's core business project. The lithium development project is considered to be one of the three growth "engines" of Posco Steel. Posco Steel is the only company currently capable of manufacturing cathode materials for rechargeable batteries in South Korea. Seven plants have been completed and the company has begun project expansion to increase production of anode materials. At the same time, Posco actively cooperates with other major cobalt industry leaders to quickly deploy the cobalt and lithium industry.
Established a subsidiary with Huayou Cobalt
Earlier this year, Huayou Cobalt and Posco established two joint ventures, Zhejiang Huayou Pohang New Energy Co., Ltd. and Zhejiang Pohang Huayou New Energy Co., Ltd., which are mainly engaged in the research and development, production and sales of lithium-ion-related precursors. The two China-based joint ventures will begin producing ternary material precursors and anode materials from 2020.
At the same time, the joint venture company of the two held the inauguration ceremony of the 30,000-ton / year power battery ternary precursor / positive material project in Tongxiang Economic Development Zone in November, marking the strategic cooperation between Huayou and Posco has entered a new stage . Huayou Posco New Energy covers an area of 141 acres, with a total investment of 1.008 billion yuan, to build a ternary precursor material project with an annual output of 30,000 tons of power batteries. One of the projects has an annual production capacity of 5,000 tons and will be completed and put into operation in August 2019. Puhua New Energy covers an area of 156 acres, with a total investment of 930 million yuan, to build a ternary cathode material project with an annual output of 30,000 tons of power batteries. One of the projects has an annual production capacity of 5,000 tons and will be completed and put into operation in August 2019. Posco's case of striding towards the new energy industry chain shows that companies in other industrial fields at home and abroad have great interest in the lithium battery industry. SMM believes that the diversification and internationalization of cathode material companies will help Manufacturers integrate global resources at competitive costs to provide competitive lithium-ion products.