POSCO’s demonstration lithium plant in Argentina. (Photo: POSCO)

POSCO secured the mining rights in the Salar del Hombre Muerto salt lake in northern Argentina at a cost of 310 billion won in 2018.

The move was part of efforts to secure lithium, one of the cathode materials used in secondary battery production.

The expected value of the salt lake has surged to a whopping 100 fold to about 35 trillion won in three years.

The jump of its expected value is owed to soaring estimated lithium reserves there, at 13.5 million tons, more than six times the 2.2 million tons at the time of the acquisition, in addition to recent lithium price hikes.

Chances are high that the expected value of the salt lake will rise further, given the outlook on the demand for lithium, a key raw material for the secondary batter, is on the rise.

POSCO began to invest in resources such as lithium in earnest around 2010.

About 10 years later, POSCO saw its capitalization surpass about 27 trillion won, considered a jackpot. POSCO plans to aggressively invest in nickel, another core material for the secondary battery.

Nickel is a key raw material for raising the capacity of the secondary battery along with lithium.

POSCO plans to build its own supply chain of secondary battery raw materials, such as lithium, nickel and graphite, and its subsidiary POSCO Chemical plans to create a system of producing 400,000 tons of anode materials and 260,000 tons of cathode materials.

Meanwhile, POSCO Group recently acquired a 15 percent stake in a graphite mine in Tanzania from Australian miner Black Rock Mining.

ESG Committee Inaugurated Under Umbrella of Board of Directors

POSCO decided to inaugurate the ESG (Environment, Social and Governance) committee under the umbrella of its board of directors.

The inauguration of the ESG Committee may be construed as POSCO’s expression of its determination to ramp up social responsibility as a global corporate citizen by letting the board pay constant attention to ESG issues, constantly manage major policies such as ESG activities and monitor their implementation.

In particular, it means POSCO’s board recognizes the current situation of environment and safety accident issues like carbon neutrality, which has emerged prominently in the steelmaking industry and promises to pay constant attention to and support for based on long-term plans and strategies.

POSCO declared its management tenet “corporate citizenship” as Chairman Choi Jeong-woo took office in 2018. POSCO has spearheaded ESG management as POSCO became the first steelmaker in Asia to announce a carbon neutrality plan and the first steelmaker in the world to inaugurate a body specializing in ESG.

In his New Year’s message, Chairman Choi said, “As social demand toward corporate ESG management is mounting, it is now more important for us to put into practice our management tenet “corporate citizenship.”

POSCO submitted a proposal of tapping Yoo Young-sook, a senior researcher of the Korea Institute of Science and Technology (KIST), and former ambassador Kwon Tae-gyun to the United Aram Emirates, as outside directors and Chung Chang-hwa, head of POSCO Management Support Division, as an inside director to the 2021 regular shareholders’ meeting.