Mining activity in May dropped 2.3% compared with the same month in 2018 as the sector continued to confront sharply falling ore grades at its largest deposits.
The miner expects to invest 525 million euros in the Centenario deposit with the aim of producing 24,000 tonnes of lithium carbonate equivalent per year.
POSCO's decision is the latest in a string of setbacks for Chile, which has struggled to modernize its lithium policies, boost output and develop a domestic battery industry.