POSCO Holdings has completed all procedures for the additional acquisition of lithium salt lakes in Argentina that it has been pursuing to secure critical minerals. Through its local subsidiary POSCO Argentina, the company has purchased 100% of the Ombre Muerto Norte mining rights owned by Canadian firm Lithium South (LIS). The total project cost for concluding this contract is estimated at approximately USD 65 million (about KRW 95 billion).

The newly secured salt lake is estimated to contain about 1.58 million tons of lithium reserves and is assessed as a high-quality asset with low impurities and high concentration. With this acquisition, POSCO now holds a total of 15 million tons of brine lithium assets in Argentina. Taking extraction yield and other factors into account, actual product output is expected to exceed 3 million tons, which is sufficient to manufacture batteries for around 70 million electric vehicles.

The company expects that by additionally securing mining rights adjacent to its existing site, it will achieve high operational efficiency in the mining and refining processes. In addition to its currently operating Phase 1 facilities and Phase 2 facilities scheduled for completion within this year, the newly acquired assets are expected to serve as a strong driver supporting the company’s long-term production expansion plans.

The full support system of local administrative authorities is also working favorably. Approval of RIGI, a large-scale investment promotion regime established by the Argentine government to foster strategic industries, is imminent. Once approved, POSCO will benefit not only from direct relief of financial burdens through corporate tax reductions and tariff eliminations, but also from enhanced funding liquidity through relaxed foreign exchange controls. POSCO is highly likely to become the first Korean company to benefit from this regime.

The management has expressed its intention to mitigate uncertainties in the global supply chain and secure a competitive edge through this investment. At the signing ceremony, POSCO Holdings President Lee Joo-tae stated that the company would proactively respond to market changes based on its independent resource base. In response, Argentina’s Minister of Economy Luis Caputo pledged cooperation, saying POSCO’s business is becoming a model for revitalizing the Argentine economy.

This move is in line with the strategy of preemptively securing high-quality assets that has been in full swing since Chairman Chang In-hwa took office. POSCO Holdings plans to continue strengthening its raw material procurement capabilities, solidify the global supply and demand system in the secondary battery materials sector, and consistently enhance the competitiveness of its local production bases.

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