Lithium Americas Begins Commercialization Discussions With POSCO

Lithium Americas (TSX:LAC) has announced that it is in commercialization discussions with Korean steelmaker POSCO to commercialize its Cauchari-Olaroz lithium project in Argentina. The companies expect to complete heads of agreement to define basic conditions for a new joint venture company. These are expected to include the right for Lithium Americas to use POSCO’s proprietary lithium extraction technologies for the production of lithium carbonate and lithium hydroxide.

As quoted in the press release:

POSCO’s and LAC’s decision to pursue a commercialization agreement is based on the successful results and collaborative efforts surrounding the operation of POSCO’s innovative high efficiency lithium extraction demonstration plant (the “Demo Plant”). The Demo Plant, with an operating capacity of 200 tonnes per year of lithium carbonate equivalent (“LCE”), was inaugurated at the LAC Cauchari project site on December 19, 2014 and achieved full and continuous operating rates throughout a test period that ended in late January, 2015. During this period, over 20 tonnes of lithium phosphate was produced and subsequently exported to POSCO’s facility in Pohang, Korea where it was further processed into battery grade lithium carbonate and lithium hydroxide. POSCO advised Lithium Americas that initial test results indicated that the Demo Plant achieved or exceeded all performance targets and that the lithium products processed in Pohang were of very high quality.

POSCO and LAC contemplate that the proposed commercial plant will be capable of producing up to 20,000 tonnes per annum of LCE in an initial Phase 1 with plant construction scheduled to commence in late 2015. Additional details will be released upon the execution of the HOA.

Lithium Americas CEO, John Kanellitsas, said:

Over the past year working closely with the POSCO team, we have witnessed first-hand the commitment and creativity of the POSCO scientists, engineers and technicians to perfect this industry transformative processing technology. Our proposed JVC will have aggressive and ambitious market share goals that will potentially make Jujuy, Argentina the world’s future capital of lithium production. We are very pleased and honoured to continue to collaborate with Dr. Chon and his team to commercialize the innovative POSCO process into a profitable business.

Click here to read the Lithium Americas (TSX:LAC) press release