POSCO Holdings Inc., which owns South Korea’s top steelmaker POSCO, said on Wednesday that it is investing 1.2 trillion won ($817 million) to secure lithium, a key raw material for electric vehicle batteries, from mines in Australia and Argentina.
The South Korean steel-to-battery materials conglomerate said in a statement that it is acquiring a 30% stake in a newly established intermediate holding company established by Australian miner Mineral Resources Ltd. (MinRes) for 1.1 trillion won ($765 million).
The investment will allow POSCO to annually secure 270,000 tons of lithium concentrate from the Wodgina and Mt. Marion mines operated by MinRes in Western Australia.
The supply is enough to produce around 37,000 tons of lithium hydroxide annually, sufficient for about 860,000 EVs.
The deal also allows POSCO to participate in mine management and receive dividends, as well as to explore downstream collaboration such as refining and processing lithium concentrate as the market expands, according to the Korean company.
Chris Ellison, chief executive of Mineral Resources, said he was pleased to see the partnership with POSCO, which began with the Onslow iron ore project in Western Australia, expand into lithium.
“By combining our respective strengths, we look forward to creating long-term value from the Wodgina and Mt Marion operations,” he said.
PROJECTS IN ARGENTINA
Separately, POSCO said it agreed to acquire the full ownership of the Argentine subsidiary of Canadian resources developer Lithium South Development Corp. (LIS), which holds lithium mining rights in the Hombre Muerto salt lake, for 95 billion won.
The acquisition will expand POSCO’s footprint in one of the world’s richest lithium brine deposits, supplementing the mining rights it secured there in 2018.
“POSCO Group views the energy materials business as a core growth driver alongside our steel operations, and we are committed to securing a stable, cost-competitive supply of raw materials to enhance our long-term competitiveness,” said POSCO Holdings Chairman Chang In-hwa.
Once known solely as Korea’s top steelmaker, POSCO has in recent years transformed itself into a key player in the global battery materials industry.
The group said it is investing heavily across the EV supply chain, from lithium extraction and refining to cathode and anode materials, as part of its ambition to become a fully integrated “green materials” company.
