South Korea's Posco Holdings eyes investment in Alberta lithium fields

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South Korean company Posco Holdings is considering investing in the exploration, development and commercialization of lithium in Alberta.

Cells for battery manufacturing wait to be assembled into modules at Lion Electric Company's lithium-ion battery manufacturing facility in Mirabel, Que., Thursday, Sept. 14, 2023. THE CANADIAN PRESS/Christinne Muschi

“Through our strategic collaboration with Invest Alberta, Posco Holdings is not only advancing our commitment to securing lithium but also reinforcing our standing in the global secondary battery supply chain,” said Kyung Sub Lee, Posco Holdings executive vice-president, in a news release. The development is the first public indication that major foreign investors are eyeing Alberta's lithium resources.

Until recently, there has been little interest in developing this deposit, but the growth in electric vehicles and exponential demand for lithium-ion batteries has changed that. One Calgary-based company, a publicly traded junior resource company called E3, has developed its own technology to extract the lithium that occurs naturally with Alberta's oilfield brines. E3 holds the mineral rights to an estimated 16 million tonnes of lithium resource, and hopes to open a full-scale commercial plant in the central part of the province by late 2026.

“That's where the real value-add is for Canada. If we just export the minerals out of here, that's not really a win in our minds.”

 

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