South Korea's Posco has acquired a 4.75% stake and convertible bonds in Australian lithium producer Pilbara Minerals, according to reports in South Korea.
Pilbara also signed a long term deal to supply Posco with 240,000 tons of lithium spodumene concentrate per year.
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Posco, South Korea's largest steel manufacturer and a major supplier to the automotive industry, is rapidly expanding its presence in the lithium business as it looks to benefit from surging global demand for lithium-ion batteries for electric and hybrid vehicles.
China is leading the global growth in demand for electric vehicles while sales of plug-in hybrid vehicles also are expanding rapidly worldwide.
South Korea is also a major producer of lithium-ion batteries for smartphones and laptops.
Posco is looking to secure material supplies to help meet future demand, particularly from domestic automakers Hyundai and Kia.
As a result of this deal, Posco will have the capacity to produce 30,000 tons of lithium carbonate per year by 2020.
