POSCO Holdings is speeding up its lithium project in Salta, Argentina, by strengthening cooperation with local partners. The move is expected to stabilize the regional supply chain and expand synergies in mineral resource development.
The Salta provincial government announced on the 22nd (local time) that POSCO held a briefing session for local suppliers. The event shared details about POSCO’s procurement system, quality standards, and management framework with companies that could participate in the “Sal de Oro” project, which aims to produce lithium by developing the Hombre Muerto salt flat.
The briefing was designed to help suppliers—providing parts, services, and equipment for lithium production—understand POSCO’s requirements and respond effectively. Despite a downturn in lithium-related investments due to falling global prices, POSCO’s commitment to maintaining and strengthening the local supply chain was evident, according to the Salta government.
Attendees included Park Hyun, head of POSCO Argentina, Martín de los Ríos, Salta’s Minister of Production and Sustainable Development, Federico Russo, president of the Salta Mining Suppliers Association, and numerous business representatives. The event drew not only existing partners but also potential collaborators, showcasing strong interest.
Minister de los Ríos emphasized the importance of sustaining and reinforcing the local supply chain despite global lithium market uncertainties. “Salta still holds critical mineral resources, and maintaining a steady supply chain is vital,” he said. “Suppliers must enhance their capabilities and competitiveness to meet the demands of major companies like POSCO.”
The Salta government also pledged ongoing administrative and institutional support to ensure smooth relations with local communities. Through Mining Promotion Law No. 8164, it will oversee the legality and transparency of mining activities while boosting local workforce skills to facilitate seamless mining services.
POSCO has recently ramped up efforts for the Sal de Oro project. Earlier this month, it signed three agreements with the ‘Mesa del Litio’, comprising Salta, Catamarca, and Jujuy provinces, covering royalty distribution and local tax frameworks.
POSCO entered the Argentine market in 2018 by investing $210 million to acquire the Hombre Muerto salt flat. The project, divided into three phases, aims to establish local lithium production. In 2022, construction began on the first phase—a 25,000-ton lithium hydroxide facility—which was completed in October last year. The company is now investing approximately $700 million in the second phase of the same lithium brine project and plans to establish a third-phase facility with a 50,000-ton capacity in a timely manner to achieve a total output of 100,000 tons.
