POSCO Plans to Build Pilot Plant in Utah, Eyes Lithium Production

Core Insights - Posco Holdings (PKX) is developing a trial lithium processing plant in the U.S. in collaboration with Anson Resources, marking the first initiative by a South Korean company to produce lithium directly in North America, aimed at reducing reliance on Chinese suppliers due to new U.S. import limits [1][7] Group 1: Project Details - The two companies have signed a memorandum of understanding (MoU) to construct the pilot plant in Green River City, Utah, next year, which will assess the viability of Posco's Direct Lithium Extraction (DLE) technology for large-scale production [2] - Anson Resources holds mining rights to a lithium brine location in Utah, providing Posco a competitive advantage over domestic rivals like LG Chem, which relies on local lithium producers instead of direct production [3] Group 2: Technology and Market Strategy - Posco aims to commercialize its DLE technology, developed in 2016, following the successful operation of a demonstration plant in the U.S., with plans to invest in and develop untapped lithium brine lakes across North America [4] - The U.S. is home to some of the world's largest lithium reserves, following Bolivia and Argentina, contained in extensive brine lakes [4] Group 3: Financial Performance - Over the past year, shares of PKX have decreased by 19.8%, while the industry has seen a decline of 25% [4]