Posco on Wednesday began the construction of a new lithium hydroxide plant with a production capacity of 43,000 metric tonnes per year.
The company will spend 760 billion won to build the factory at its Gwangyang plant.
Posco is aiming to complete the factory by 2023. It will be procuring the lithium ore from Australia’s Pilbara Minerals.
In April, Posco formed a new subsidiary called Posco Lithium Solution to oversee lithium hydroxide production.
Lithium hydroxide are used in high-nickel cathode used in electric car batteries.
Batteries previously mainly used lithium carbon in their cathode but use of lithium hydroxide is increasing from the application of high-nickel cathode to extend traveling distance of electric cars.