SMM11, March 27: recently, Galaxy Resources issued an announcement saying that Transfer of its Umbre Muerto Salt Lake (Salar del Hombre Muerto), located in the Puna Plateau between Catamarca and Salta provinces in northern Argentina, to steel giant Posco (POSCO), for US $280 million. The mine is located in Galaxy Resources' world-class Sal de Vida project in Argentina.
Salar del Hombre Muerto Salt Lake:
(the blue area is the Milky way resource sold to the Posco mining area, the red area is the Milky way resource reserved mining area)
Galaxy Resources Chairman Martin Rowley said: "the large amount of cash from this transaction with Posco will support the development of the company's Sal de Vida Salt Lake Lithium Project in Catamaca Province, Argentina. Sal de Vida is a 40-year-old battery-grade lithium carbonate project with an annual capacity equivalent to 25000 tons. We will retain 100 per cent of our reserves for the development of the project, which will not include any projected resources contained in the mining rights sold to POSCO. The deal provides more flexibility in the parallel formal process we are working with JPMorgan Chase. We look forward to working closely with POSCO on various projects to achieve long-term mutual benefit. Since Galaxy Resources and POSCO's mining rights cover the provinces of Catamaca and Salta, the above transaction means that two new lithium projects will be developed at the same time in (Salar del Hombre Muerto), Wonblemelto Salt Lake, making the project more strategic. It will also bring greater returns to stakeholders in the region. "
It is reported that, Sal de Vida, located in the lithium triangle in the Pune region of northwest Argentina, accounts for more than 50 per cent of global lithium production. It is one of the largest and highest quality undeveloped salt water deposits in the world and has obvious expansion potential. On the deal, Posco said the move would provide a stable supply of lithium to POSCO ES Materials, its battery materials manufacturing subsidiary.
The Development of Lithium Battery in Posco Iron and Steel
Founded in 1968, (POSCO) is one of the largest steelmakers in the world. It has the world's largest Guangyang Iron and Steel Plant with an annual capacity of 16 million tons and the world's second largest Posco Iron Plant with an annual production capacity of 12 million tons. In June 2018, Choi Jeong-woo, chief executive of Posco, was appointed as the company's new chairman and asked the company to shift its strategic focus from steel production and sales to lithium and biotechnology development and operations.
(real scene of Posco Iron works)
It is reported that Posco, under the leadership of its former chairman Kwon Oh joon, has made lithium development its core business project in 2017, and the lithium development project is considered to be one of the three major growth "engines" of Posco. Posco, the only company currently able to make rechargeable battery cathode materials in South Korea, has built seven plants and has begun expansion projects to increase the production of anode materials. At the same time, Posco actively cooperate with other major cobalt industry leaders to quickly layout the cobalt and lithium industry.
Join hands with Huayu Cobalt Industry to set up a subsidiary
At the beginning of this year, Huayu Cobalt and Posco established two joint ventures, Zhejiang Huayu Posco New Energy Co., Ltd., and Zhejiang Posco Huayu New Energy Co., Ltd., mainly engaged in the research and development, production and sales of lithium power related precursors. The two Chinese-based joint ventures will start producing ternary precursors and anode materials from 2020.
(commencement ceremony of the Power Battery Ternary precursor / cathode material Project)
At the same time, the joint venture company held the opening ceremony of the ternary precursor / cathode material project with an annual production capacity of 30,000 tons of power batteries in Tongxiang Economic Development Zone in November, indicating that the strategic cooperation between Huayu and Posco has entered a new stage. Huayu Posco new energy covers an area of 141mu, a total investment of 1.008 billion yuan, the construction of an annual output of 30, 000 tons of power battery ternary precursor material project. The first phase of the project, with an annual capacity of 5000 tons, will be completed and put into production in August 2019. Puhua new energy covers an area of 156mu, a total investment of 930 million yuan, the construction of an annual output of 30, 000 tons of power battery three-way positive material project. The first phase of the project, with an annual capacity of 5000 tons, will be completed and put into production in August 2019.
The case of Posco striding towards the new energy industry chain reflects the great interest of enterprises in other industries at home and abroad in the lithium power industry. SMM believes that the diversification and internationalization of positive materials enterprises. It will help manufacturers to integrate global resources at superior cost and provide competitive lithium power products.
Scan QR code, apply to join SMM cobalt lithium, battery metal AC group, please indicate company + name + main business
