POSCO Holdings Inc. (NYSE:PKX) is one of the best hot stocks to buy according to Wall Street analysts. On July 1, POSCO Holdings announced its agreement to construct a pilot lithium processing plant in the US. This is a collaboration with Australia’s Anson Resources and aims to support POSCO’s EV battery raw materials supply chain while reducing its reliance on Chinese suppliers.

This is in response to new import restrictions imposed by the Trump administration in the US. The two companies have formalized their partnership through an MoU. The new pilot plant is slated for construction next year in Green River City, Utah. Its primary purpose will be to evaluate the commercial viability of POSCO’s proprietary Direct Lithium Extraction/DLE technology for large-scale production.POSCO Holdings to Build US Lithium Plant, Supports EV Supply Chain

A close-up shot of a worker welding steel beam together in a large steel foundry.

POSCO has been developing this innovative technology since 2016, and it extracts lithium from large and low-concentration brine lakes without solely relying on natural evaporation. Anson Resources possesses the mining rights for the lithium brine site in Utah, where the plant will be located. This venture will be the first time a South Korean company directly produces lithium in North America. Unlike some domestic competitors, POSCO is engaging in direct production.

POSCO Holdings Inc. (NYSE:PKX) is an integrated steel producer in Korea and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.

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