POSCO Holdings is set to become the first South Korean company to demonstrate lithium direct extraction (DLE) technology in the U.S.
The company announced on Wednesday that it has entered into a partnership agreement with Australian resource developer Anson Resources to build and operate a DLE demonstration plant in Utah’s Green River area.
DLE technology enables cost-effective lithium production from low-concentration brine deposits. It offers higher recovery rates and shorter production times compared to traditional evaporation methods, positioning it as a key innovation in the global lithium industry.
This agreement allows POSCO Holdings to validate the commercial viability of its DLE technology, from plant design to construction and operation, on U.S. soil.
Anson Resources will contribute by providing the site, infrastructure, and brine supply, while leveraging its local network to secure necessary permits for the plant’s establishment.
POSCO Holdings aims to complete and commence operations at the demonstration plant by 2027. The company plans to finalize technology verification using actual brine by 2028, paving the way for full-scale commercialization.
The South Korean conglomerate has been developing DLE technology since 2016, conducting pilot tests on brine from various global locations, including Argentina, to build expertise in process design and operations.
This U.S. demonstration marks a significant milestone for POSCO Holdings, representing the first global market test of its proprietary DLE technology. It serves as a crucial step in validating the commercial potential of this next-generation lithium production method.
The company expects this initiative to bolster its technological edge in the global brine lithium market by proving the economic viability of extracting lithium from low-grade resources.
Beyond expanding its North American lithium operations, this project is anticipated to help POSCO Holdings establish a robust, technology-driven lithium supply chain.
POSCO Holdings Chief Executive Officer (CEO) Lee Joo-tae emphasized that this demonstration is a strategic move to secure cutting-edge technology and gain a foothold in the global lithium market. It’s committed to enhancing the competitive position in the global lithium industry, particularly in North America, through the unique technological capabilities.
In related news, POSCO Holdings released its preliminary first-quarter results, reporting sales of approximately 17.88 trillion KRW (about 11.74 billion USD) and an operating profit of about 7.1 trillion KRW (about 4.65 billion USD). These figures represent year-over-year increases of 2.5% and 24.3% respectively. The company’s net profit surged to around 5.4 trillion KRW (about 3.54 billion USD), marking a 57.9% jump from the same period last year.