It is estimated that the value of Argentine lithium lake, which POSCO acquired for 300 billion won in 2018, is worth 35 trillion won. Along with the recent surge in demand for electric vehicles, the price of lithium, an essential material for batteries, surged, and POSCO launched a’jackpot’ that earned a whopping 113 times more profit.
POSCO announced on the 3rd that the value of the Argentine Ombre Muerto lithium salt lake (salt lake), which it acquired for 301 billion won in 2018, is worth 35 trillion won. This is because there were more lithium reserves than estimated at the time of the acquisition, and the price of lithium, a key material, surged due to the recent surge in electric vehicle demand.
For accurate verification of lithium reserves, POSCO entrusted the verification of reserves to Montgomery & Associates of the United States, a global salt solution lithium consulting firm. The company conducted verification for several months in accordance with internationally recognized regulations, and the result was confirmed to be 13.5 million tons, six times more than 2.2 million tons estimated at the time of acquisition.
The value may increase further. China’s spot price of lithium carbonate has more than doubled, surpassing $11,000 per ton last month from 5,000 dollars per ton in July last year.
A POSCO official said, “As the electric vehicle market is growing worldwide, including China, the price of lithium, an essential material for electric vehicle batteries, is expected to continue to rise.”
In addition to lithium, POSCO has invested in nickel, a key material for cathode materials that make up secondary batteries, and diversified the supply and demand of graphite, a material for anode materials that are currently entirely dependent on China.
Recently, POSCO has been busy securing core raw materials for batteries, as it acquired a 15% stake in Black Rock Mining, an Australian mining company that owns a graphite mine in Tanzania, Africa.
Reporters Si-hyung Lee and Dong-hoon Kwak