POSCO Holdings invests USD 887 million in Australia, Argentina in lithium assets

The South Korean steelmaker said it will acquire a 30 per cent stake in a new holding company to be formed by Mineral Resources, one of Australia's leading mining firms, for USD 765 million. The investment will give POSCO access to a stable supply of 270,000 tons of lithium concentrate annually from Mineral Resources' Wodgina and Mt. Marion mines in Western Australia. This amount can produce about 37,000 tons of lithium hydroxide, enough to power roughly 860,000 electric vehicles.

POSCO said the deal not only ensures a consistent supply of key materials but also gives the company a role in mine operations and potential dividend income. The partnership is expected to strengthen its foothold in the lithium value chain and open opportunities for refining lithium concentrate as global demand for electric vehicles continues to grow.

In a separate move, POSCO also invested USD 65 million on November 5 to acquire a 100 per cent stake in the Argentine subsidiary of Lithium South Development Corporation (LIS). The subsidiary holds mining rights in the Hombre Muerto salt lake, one of Argentina's richest lithium regions. The company said this purchase builds on concessions it first obtained in 2018, adding new reserves and expanding its footprint near its existing lithium operations in the area.

POSCO Group said securing raw material competitiveness is crucial to becoming a top-tier global lithium producer. It added that it will continue to invest in projects that diversify and strengthen its global lithium supply network.

Mineral Resources welcomed the deal, saying it looks forward to expanding its partnership with POSCO in the lithium sector. The company said it believes the collaboration will "deliver sustained value" from the Wodgina and Mt. Marion projects. (ANI)