Lithium Americas and POSCO Begin Commercialization
Discussions for the Development of the Cauchari-Olaroz
Lithium Project
Posted on May 4, 2015 by LAC in News Releases
TORONTO, Canada, May 4, 2015 – Lithium Americas Corp. (TSX: LAC) (“LAC” or the “Company”) is pleased to
announce that it is now in discussions with POSCO regarding the proposed commercialization of the Company’s
Cauchari-Olaroz lithium project in Jujuy Province, Argentina. The two parties expect to execute a Heads of Agreement
(“HOA”) shortly that will define the basic conditions governing a new Joint Venture Company (“JVC”). While the full
terms of the parties’ joint venture arrangements are still to be negotiated, POSCO is expected to contribute to the
JVC the right to use its proprietary lithium extraction technologies for the production of lithium carbonate and lithium
hydroxide, while LAC would contribute the right to use brine from its Cauchari-Olaroz salar properties.
POSCO’s and LAC’s decision to pursue a commercialization agreement is based on the successful results and
collaborative efforts surrounding the operation of POSCO’s innovative high efficiency lithium extraction demonstration
plant (the “Demo Plant”). The Demo Plant, with an operating capacity of 200 tonnes per year of lithium carbonate
equivalent (“LCE”), was inaugurated at the LAC Cauchari project site on December 19, 2014 and achieved full and
continuous operating rates throughout a test period that ended in late January, 2015. During this period, over
20 tonnes of lithium phosphate was produced and subsequently exported to POSCO’s facility in Pohang, Korea
where it was further processed into battery grade lithium carbonate and lithium hydroxide. POSCO advised Lithium
Americas that initial test results indicated that the Demo Plant achieved or exceeded all performance targets and
that the lithium products processed in Pohang were of very high quality.
The lithium project team leader, Dr. Uong Chon, a Senior VP of POSCO, was recently quoted in the Korean
business press as saying “the traditional process using the evaporation method required up to 18 months
for lithium extraction and yielded low recovery rates, but our new extraction technology only requires 8 hours
and has recovery rates of 90%.
