South Korean steel and chemicals conglomerate Posco Group is moving ahead with its proposed acquisition of a major lithium mine in Argentina’s Hombre Muerto salt lake, owned by Canadian mining firm Lithium South Development Corporation.

The news comes shortly after Posco agreed to invest US$ 765 million in a 30% stake in a joint venture with Australian mining company Mineral Resources Ltd, securing the supply of 270,000 tons of lithium concentrate annually to support its expanding battery materials business.

Lithium South confirmed that it had received notification through Posco’s local subsidiary, Posco Argentina SA, that the investment has been fully approved by the company’s head office in South Korea and that the funds have been allocated to Posco Argentina to complete the transaction.

Lithium South has agreed to sell its wholly-owned subsidiary, NRG Metals Argentina SA, which owns the mining rights of the Hombre Muerto North Lithium Project, for US$ 65 million. Posco Argentina has confirmed that the transfer of funds has been scheduled and expects the transaction to be completed in the near future.