Posco Group invests in Australian lithium for battery materials

POSCO Holdings will invest a total of KRW 1.1 trillion to secure high-quality lithium resources in Australia and Argentina, aiming to strengthen its competitiveness in raw materials for secondary battery materials.

MinRes and POSCO Holdings form new lithium joint venture The partnership affords POSCO access to spodumene capacity equivalent to 30ktpy LCE contained, underpinning its downstream processing ambitions. On paper both assets are reasonably competitive, sitting firmly in the third quartile of the AISC cost curve according to Project Blue's lithium extractive cost service. Wodgina is expected to be marginally profitable at current prevailing spot prices of ~$1,000/t SC6. It should be noted, that ~20% (1.6Mt SC6) of the supply to the left of Wodgina on the 2030 cost curve isn't currently in production.... If POSCO were buying into a project still under development, they could likely pay a lower cost per tonne and potentially, secure a lower operating cost asset (assuming estimates are correct). However, they’d assume far greater execution, timing, and price risk. The valuation therefore reflects the premium for: ⛏️ Securing real tonnes, not just theoretical "paper" tonnes. 🔒 Locking in exposure to a competitive operating asset in a volatile market. ✅ Securing a long-life, de-risked source of spodumene to support its downstream ambitions. Read more about the deal here: https://lnkd.in/eYMAuVN6

MinRes has signed a binding agreement with POSCO Holdings to form a new incorporated joint venture that will support the continued growth of our world‑class lithium business. The new entity will hold MinRes’ existing 50% interests in the Wodgina and Mt Marion lithium operations and assets, of which POSCO Holdings will acquire a 30% interest for US$765 million. Under the terms of the agreement, MinRes will continue to operate both mines in line with current joint venture arrangements with Albemarle Corporation at Wodgina and Ganfeng Lithium at Mt Marion. This partnership affirms the quality of our lithium portfolio and supports POSCO Holdings’ ambitions in downstream battery chemicals supply. Full details are available at our website. Link in the comments.

POSCO's $765 million partnership with Mineral Resources just reshaped Australian lithium dealmaking 🔋 The South Korean giant secured a 30% stake in MinRes' premium lithium assets. This values the combined Wodgina and Mt Marion portfolio at $3.9 billion. Key Deal Metrics: POSCO investment: US$765M (~A$1.2B) MinRes retains 70% control Effective 35% interest in each mine 22% debt reduction potential Strategic Value Creation: MinRes shares hit 12-month highs of $52 following the announcement. The partnership provides immediate capital injection whilst preserving operational control. POSCO brings downstream processing expertise and established battery manufacturer relationships. Market Impact: This transaction establishes a precedent for international critical minerals partnerships. It demonstrates how Australian miners can leverage foreign expertise whilst maintaining sovereignty. The vertical integration strengthens Australia's position in global battery supply chains. Timeline Considerations: FIRB approval required with completion expected by H1 2026. Operations continue normally under existing agreements during the transition. Enjoy this summary? Hit the 'like' button to let us know. Stay up to date with lithium sector developments by following this page. Read the complete partnership analysis and financial implications here: https://lnkd.in/gK7RkqT4 #

South Korean steel giant POSCO HOLDINGS is deepening its ties to Australia's resources sector with a deal to acquire a 30% stake in Mineral Resources Limited's lithium business. Read more: https://lnkd.in/gVAyjHyd

I enjoy watching a big strategy initiative unfolding in real time. That's what we are seeing with POSCO HOLDINGS' acquisition of a 30% stake in Mineral Resources hardrock lithium mines for $765M, which further entrenches the Korean conglomerate in the critical minerals supply chain. The backstory is that before the its 2022 restructuring, POSCO was a traditional integrated steel producer — one of the largest in the world — and was widely recognised as the flagship of South Korean heavy industry. In March 2022, POSCO completed a spin-off and reorganisation: POSCO Holdings Inc. became the new holding company. POSCO (the steelmaker) became a wholly owned subsidiary of the holding company. The reason: to separate the traditional steel operations from new growth businesses (battery materials, hydrogen, renewables, lithium/nickel mining). This move was positioned as the start of a transition to a sustainable materials group. POSCO’s leadership framed the shift as essential to attract ESG-focused capital, and to support diversification into battery materials, hydrogen, and green steel technologies (HyREX, electric arc furnaces). In the meantime, POSCO commissioned a 25kt/a lithium brine operation in Argentina and a 43kt/a lithium hydroxide monohydrate plant at Gwangyang in Korea. POSCO previously took an 18% stake in PLS' (formerly Pilbara Minerals) Pilgangoora mine, as a means of securing spodumene feed for Gwangyang; presumably the MinRes assets will supplement that. POSCO has made a significant commitment to decarbonising its steel business and dropped some hints of the importance it places on being a low carbon battery raw material supplier - although hard emissions numbers for that business segment are not available, yet. This really matters, when it comes to the carbon footprint of the lithium going into EV batteries. The Skarn Associates Li GHG intensity curve below highlights the position of POSCO's feed assets on a Scope 1 and 2 basis - so excluding the downstream processing to LiOH. For a typical spodumene concentrate processed in China (which most of it is), the downstream emissions add another 10-15t CO2 per tonne LCE production (lithium carbonate equivalent). Thats >10x the Pilgangoora mine site emissions. I suspect Gwangyang is somewhat better than that - so come on POSCO HOLDINGS, tell the world, please! #criticalminerals #miningdecarbonisation #POSCO #MineralResources #lithium

POSCO HOLDINGS will buy 30% of Mineral Resources Limited's (MinRes) stake in the Wodgina and Mount Marion #lithium mines, in Western Australia (#WA), further expanding its Australian #mineral footprint. The deal excludes MinRes' dormant Bald Hill #mine and Goldfields exploration #tenements, MinRes said in an investor call today. It's also subject to Foreign Investment Review Board approval. MinRes currently runs Wodgina and Mount Marion as equal joint ventures with Albemarle Corporation and Jiangxi Ganfeng Lithium, respectively. POSCO already has a lithium partnership with Australian miner PLS. The two companies produce lithium hydroxide at a plant in Gwangyang, South Korea, using concentrates from WA. The South Korean conglomerate also co-owns multiple Australian #iron projects. It holds a minority stake in the 35m t/yr Onslow iron #ore mine - which MinRes operates - and is developing a lower-#emissions iron project in Port Hedland. POSCO may add another asset to its Australian portfolio over the next year. It's part of a BlueScope-led consortium that - in August - floated plans to buy the troubled Whyalla #Steelworks. Keep reading to learn more about the deal and some of the challenges impacting POSCO's Gwangyang plant: https://lnkd.in/gwK8bKpb

🇰🇷 POSCO Holdings just committed $815 million to secure Australia's lithium future. The South Korean steel giant isn't just buying stakes. They're building an integrated battery materials empire from mine to market. The Numbers Behind This Strategic Play: $765M for 30% of MinRes lithium operations. Access to 270,000 tonnes annual concentrate. Additional $65M Argentine lithium acquisition. Supply for 860,000 EV batteries annually. This represents a fundamental shift in how international companies approach critical minerals investment. Why This Partnership Changes Everything: Supply Chain Security - Direct mine-to-battery integration. Geographic Diversification - Australian hard rock + Argentine brine. Regulatory Innovation - Foreign capital with domestic control. Market Validation - Premium valuations for strategic assets. POSCO retains operational control of Korean processing facilities while securing raw material access through equity participation rather than volatile spot contracts. The transaction covers Wodgina and Mount Marion mines, two of Australia's premier lithium facilities with established infrastructure and proven production records. Strategic Implications: This structure addresses supply security concerns while providing development capital for Australian operations. MinRes maintains 70% ownership and operational control, preserving mining expertise while gaining strategic partnership benefits. Transaction completion expected first half 2026, subject to regulatory approvals. The partnership demonstrates how traditional steel companies are pivoting toward battery materials as electric vehicle demand accelerates globally. International competition for Australian lithium assets intensifies as companies recognise strategic value beyond pure financial returns. Enjoy this summary? Hit the 'like' button to let us know. Stay up to date with critical minerals partnerships by following this page. Read the full analysis of how this partnership reshapes Australia's lithium investment landscape: https://lnkd.in/g4__T69u #lithium #investment #POSCO #Australia #batterymaterials #EVbatteries

Lithium Market : Mineral Resources to sell 30% lithium JV stake to POSCO for $765M MinRes had tried to sell stakes in two assets this year, but the process lost steam after prospective buyers from India and Japan balked at the suggested price tag of more than $2 billion. Under the deal, POSCO will receive spodumene concentrate in proportion to its 30% interest in the joint venture. https://lnkd.in/gKbuVECC

Australia's lithium sector just witnessed a $765 million deal that could reshape how battery supply chains operate globally. 🔋 POSCO's Strategic Investment Details: $765M for 30% stake in MinRes lithium joint venture. Indirect 15% interest in both Wodgina and Mt Marion operations. MinRes maintains 70% ownership and operational control. Direct supply access to two of Western Australia's premier lithium projects. Why This Partnership Matters: The deal creates a vertically integrated supply chain connecting Australian hard-rock deposits directly to South Korean battery manufacturing. POSCO secures guaranteed spodumene concentrate allocation while MinRes gains immediate liquidity without equity dilution. This structure eliminates spot market volatility exposure for POSCO whilst providing MinRes with capital for debt reduction and growth initiatives. Market Implications: Battery manufacturers are increasingly investing directly in upstream mining operations rather than relying on trading intermediaries. The transaction reflects premium valuations for high-quality Australian lithium assets as global EV adoption accelerates. Geographic diversification strategies are intensifying as manufacturers reduce dependence on Chinese-controlled supply chains. Timeline Forward: FIRB approval expected during H1 2026, with operational integration following transaction closure. Both Wodgina and Mt Marion will continue existing partnerships with Albemarle and Ganfeng Lithium respectively. Enjoy this summary? Hit the 'like' button to let us know and follow this page to stay up to date on critical minerals partnerships. Read the complete financial analysis and strategic implications: https://lnkd.in/gwzCyqs8 #lithium #battery #EV #Australia #mining