Korea Zinc Plans to Begin Lithium Production by 2027

Korea Zinc is targeting 2027 to commence lithium production at its nickel refinery under construction in Ulsan, South Korea, according to sources familiar with the matter. This move will position the company to produce all the raw materials needed for battery manufacturing.

The company plans to install equipment in 2026 that will extract lithium from used battery scraps, with the aim of starting commercial production the following year. Korea Zinc is considering producing both lithium carbonate, used in lithium iron phosphate batteries and as an electrolyte ingredient, and lithium hydroxide, essential for high-nickel cathode batteries.

The Ulsan facility was initially designed to focus on nickel production, including products such as nickel matte and mixed hydroxide precipitate (MHP), and to flexibly handle between one to three tonnes of these materials. Other products derived from nickel, including nickel sulfide, cobalt sulfide, precursor, and copper sulfide, are used to manufacture battery cathodes.

A company spokesperson indicated that relying solely on nickel could limit profitability, prompting the diversification into lithium. Korea Zinc's precursor production technology is classified as a core national technology and enjoys legal protection by the South Korean government. The addition of lithium to the company’s portfolio could extend this protection to related technologies.

A key challenge for Korea Zinc will be securing customers for its lithium products. EcoPro, a South Korean company that began producing lithium hydroxide in 2021, secured a deal to supply 154,000 metric tonnes to Samsung SDI in 2024, valued at $2 billion. Potential customers for Korea Zinc include LG Chem, given the company's existing collaborations within the LG Group.