# Posco Expands Gwangyang Hub to Strengthen South Korea's Energy Supply Chain The industrial complex integrates LNG infrastructure and battery material production to reduce import dependency. - **Source:** [The Korea Herald – All](https://www.koreaherald.com) - **Published:** 2026-11-10 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/051b07be-3d29-4f25-9bfb-2ad6c3c9c3d4 ## Expanding Energy Infrastructure Posco International recently completed the Terminal 2 expansion at its Gwangyang LNG facility. This 949.2 billion won project added two massive storage tanks, increasing total capacity to 1.44 million kiloliters. This volume provides roughly 40 days of residential heating demand for South Korea, significantly bolstering the nation's energy security and import capabilities. ## Innovative Material Engineering The new LNG tanks utilize Posco’s proprietary high-manganese steel, which performs comparably to conventional 9 percent nickel steel. This material innovation reduces construction costs by approximately 25 percent while maintaining structural integrity against extreme temperatures. The tanks feature 75-centimeter-thick walls designed to withstand seismic activity and other significant external shocks. ## Massive Cathode Production At the Yulchon Industrial Complex, Posco Future M operates a cathode material plant with an annual capacity of 90,000 tons. This output supports the production of batteries for approximately 850,000 Hyundai Ioniq 5 electric vehicles. The facility utilizes highly automated processes to ensure consistent quality for high-performance nickel-cobalt-manganese and aluminum compositions. ## Advanced Battery Technology The plant employs single-crystal cathode technology to enhance battery durability and thermal stability. Unlike polycrystalline materials, these particles resist cracking during repeated charging cycles. Robotic systems and automated guided vehicles manage internal logistics, while pneumatic tubes transport samples to laboratories in 20 seconds, ensuring rapid quality control and precise chemical analysis. ## Diversifying Lithium Sourcing Posco-Pilbara Lithium Solution operates a commercial lithium hydroxide plant with a 43,000-ton annual capacity. By processing lithium ore imported from Australia under a 20-year agreement, the company aims to reduce South Korea's reliance on China. This facility combines electrodialysis and chemical processing to create essential ingredients for high-performance electric vehicle batteries. ## Circular Battery Economy Posco HY Clean Metal processes 12,000 tons of black mass annually to recover valuable metals from spent batteries. With recovery rates exceeding 90 percent, the facility extracts lithium carbonate, nickel sulfate, and cobalt sulfate. These recovered materials are fed back into Posco Future M’s production line, creating a sustainable, closed-loop manufacturing ecosystem. ## Specialty Gas Production Posco Air Solution produces 130,000 cubic meters of high-purity gases, including xenon, krypton, neon, and helium. These materials are critical for semiconductor manufacturing, aerospace, and defense industries. By securing domestic production of these specialty gases, Posco mitigates risks associated with geopolitical tensions and global supply chain disruptions for high-tech manufacturing sectors. ## Strategic Industrial Integration Posco is evolving from a traditional steelmaker into a diversified industrial powerhouse. By linking LNG infrastructure, battery materials, recycling, and specialty gases, the group creates a resilient supply chain. This integrated strategy positions Posco as a central player in South Korea's efforts to achieve industrial autonomy in critical, high-growth technology sectors. ## Sources covering this story - https://www.koreaherald.com/article/10932372 — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._