South Korean steel and chemicals conglomerate Posco Group has agreed to invest US$ 765 million to secure lithium supplies from Australia, to support its expanding battery materials business.
Australian mining company Mineral Resources Ltd (MinRes) confirmed that Posco has committed to acquiring a 30% stake in a new sub-holding company that will incorporate MinRes’ “operational lithium business,” including its existing 50% stakes in the Wodgina and Mt Marion lithium mines in Western Australia.
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The agreement will allow Posco to secure 270,000 tons of lithium concentrate annually from the two mines combined, in proportion with its 30% stake in the new sub-holding company, from which it can extract 37,000 tons of lithium hydroxide – enough to power around 900,000 electric vehicles.
MinRes confirmed that it will retain a 70% stake in the new holding company. It will also continue as operator of both mines under existing agreements with its joint venture partners, Albemarle Corporation (Wodgina) and Jiangxi Ganfeng Lithium (Mt Marion).
MinRes said it expects the transaction with Posco to be completed in the first half of 2026, with the proceeds to be used to repay external debt, strengthen its balance sheet and position the company for its next phase of growth.
Posco Holdings’ CEO, Chang In-hwa, said in a statement: “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.”
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By GlobalDataPosco also confirmed that it has agreed to acquire a 100% stake in the Argentine subsidiary of Canadian miner Lithium South Development Corporation, which owns lithium mining rights in Argentina’s Hombre Muerto salt lake, for KRW 95 billion.
