Pilbara Minerals and POSCO in lithium chemical tie up
05:23, 26 October 2021
Australian miner Pilbara Minerals has set up a joint venture with South Korean steelmaker POSCO to produce chemicals used in lithium-ion batteries.
The joint venture, called POSCO-Pilbara Minerals Lithium Solution, will develop and operate a lithium hydroxide monohydrate plant, a chemical material used in lithium-ion batteries.
The plant, located in Gwangyang in South Korea, will have an installed capacity of 43 kilo tonnes per annum (ktpa). As feedstock for the plant, Pilbara will supply chemical grade spodumene concentrate amounting to 315ktpa from its Pilgangoora project in Western Australia, it said in an exchange filing.
Pilbara can increase stake later
“We are very pleased to have the opportunity to partner with a company like POSCO and the supply of spodumene concentrate to the JV chemical plant will also have the benefit of further diversifying our global sales arrangements over time,” Pilbara managing director and CEO Ken Brinsden said.
“This joint venture will give Pilbara Minerals significant exposure to one of the world’s most dynamic and fastest growing markets for lithium chemicals,” he added.
Pilbara will hold an 18% stake in the joint venture but can increase it to 30% in the future. Funding requirement for the venture is estimated at around $700-750m.
Construction in 2022
Construction of the plant will start in 2022 and expected to come onstream in the second half of 2023. Such timeline “should coincide with burgeoning global lithium chemicals demand,” said Brinsden.
Following the announcement, shares in Pilbara Minerals jumped 8.6% to AUD2.27 on the Australian bourse.
Read more: Australia’s Sayona Mining acquires Moblan Lithium in Canada
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