Posco Holdings signs $765 million deal for stake in lithium mines

Posco Holdings has signed a lithium mine stake investment agreement worth approximately USD 765 million with Mineral Resources, an Australian mining and mining services company. 

This agreement materializes the investment plan for Australian lithium mines announced last November. Posco Holdings will establish a new intermediate holding company with Mineral Resources and acquire a 30% stake in it, the South Korean company said in a media release.

Through this contract, Posco Holdings has secured the right to be supplied with 30% of the lithium concentrate produced by the joint venture (LithiumCo) from the Wodgina and Mt. Marion mines in Western Australia.

The Wodgina mine boasts a high concentrate grade of 5.5% and reserves of approximately 6.2 million tons (lithium carbonate equivalent). The Mt. Marion mine has reserves of approximately 2.2 million tons. 

Through this stake agreement, POSCO Holdings plans to not only secure stable dividend income but also solidify its lithium value chain—from raw material mining to material production — by obtaining long-term supply rights for lithium concentrate, the media release said.

“This collaboration is highly significant as it combines Mineral Resources’ mining operational expertise with POSCO Holdings’ downstream processing technology to contribute to the stabilization of the global battery material supply chain,” Lee Ju-tae, President of Posco Holdings, said. “Based on our solid mutual trust, we will continue to strengthen our long-term partnership in the global lithium market.”

“This partnership is a landmark case of a major Korean company investing in the Australian lithium industry,” Chris Ellison, CEO of Mineral Resources, said. “We will concentrate all our capabilities to ensure that the Wodgina and Mt. Marion mines reach their full potential as the world’s best hard rock lithium assets.”