POSCO Holdings Completed Second Argentina Lithium Plant
The facility adds 23,000 tons of annual production capacity to the company's existing lithium mining operations.
Updated on Oct. 7, 2026 in Manufacturing
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POSCO Holdings has finalized the upper process facility for its second lithium plant at the Hombre Muerto salt flat in Argentina. This $954 million project increases the company's total annual lithium production capacity in the region to 48,000 tons.
Why it matters
The investment aims to secure the supply chain for energy storage systems as demand surges from AI data centers and the growing adoption of LFP batteries. By expanding capacity, the firm seeks to support global electrification efforts.
The second plant represents a $954 million investment with an annual capacity of 23,000 tons of lithium carbonate. This brings POSCO's total output in Argentina to 48,000 tons, moving closer to a 100,000-ton target by 2033.
The players
POSCO Holdings
This is a major South Korean multinational conglomerate that operates extensively in the steel, trade, and construction sectors.
POSCO Argentina
This is the local subsidiary responsible for managing mining operations and provincial government relations in Argentina.
The details
Located at an altitude of 4,000 meters, the facility extracts brine that will be processed into lithium carbonate and shipped to the Yulchon Industrial Complex in South Korea. POSCO Argentina has also secured support from the provinces of Salta and Catamarca to facilitate future expansion projects.
Timeline
2018: POSCO acquired mining rights for the Hombre Muerto salt flat.
2024: The company completed its first lithium plant with a 25,000-ton capacity.
October 6, 2026: The completion ceremony was held for the second plant facility.
2027: Completion is expected for the lower process facility at the Yulchon Industrial Complex.
Market Landscape
This project aligns with the global industry-wide push for lithium supply chain autonomy to support LFP battery manufacturing. It positions POSCO to better compete for market share against rivals by controlling more of its refined output from extraction to final battery materials.
Increased lithium production supports a more stable supply chain for battery manufacturers, which may eventually lower costs for energy storage and electric vehicle consumers. Customers should expect more reliable battery availability as the company ramps up its 100,000-ton production target by 2033.
The takeaway
Securing upstream lithium production is becoming a critical strategic priority for large manufacturers aiming to satisfy AI and EV market demands. Companies that control their own mineral supply chains are better insulated from the price volatility associated with global commodity markets.
What happens next
POSCO Holdings is scheduled to complete the lower process facility for the lithium conversion project at the Yulchon Industrial Complex in 2027.
Further reading
Learn more about the latest developments in Manufacturing processes and facilities.
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