STX to promote lithium business with Chinese company

South Korea's general trading company STX announced on Wednesday its plans to accelerate its lithium business with a leading Chinese lithium producer. 

On June 12, STX signed a memorandum of understanding (MOU) with Zhejiang Youngdream Li-Ion Co. at its headquarters in Jung-gu, Seoul.

The collaboration aims to enhance lithium production and sales in Korea, with a particular focus on lithium hydroxide, a critical material for secondary batteries.

The agreement between STX and Youngdream Li-Ion entails the establishment of a joint venture in Korea, where the sale of lithium hydroxide will be prioritized.

Both companies have set their sights on constructing a lithium hydroxide refining plant based on brine salt in Korea. This move aims to ensure a steady supply of high-quality lithium hydroxide for lithium battery users.

Renowned for its expertise in the automotive battery sector, Youngdream Li-Ion currently produces 60,000 tons of lithium hydroxide per year.

STX highlighted the significance of lithium hydroxide, emphasizing its crucial role in manufacturing batteries with substantial energy density and capacity, such as those used in long-range electric vehicles. 

In contrast, lithium carbonate finds applications in smaller electric vehicles, smartphones and laptops.

By establishing an integrated process encompassing brine lithium extraction, refining and lithium hydroxide production, STX aims to secure a leading position in the upstream field of lithium materials.

Write to Hyung-Kyu Kim at khk@hankyung.com