Yonhap reports that S. Korean steelmaker POSCO will build a lithium processing plant in South Korea to meet the growing demand of electric vehicle (EV) battery materials.

POSCO recently finalized a deal with lithium miner Pilbara Minerals Ltd. in Australia to set up a joint venture in Gwangyang, South Jeolla Province, that can produce 40,000 tons of high-quality lithium a year—enough for 400,000 EV batteries.

The two sides will reportedly invest 800 billion won (US$661 million) to build the facility, with POSCO taking a 79% stake in the JV. POSCO expects the new lithium plant to be completed in 2020.