Strengthening raw material competitiveness for secondary battery materials through additional investments in Australian lithium mines and Argentine lithium brine deposits
Prioritizing the acquisition of high-quality resources… Chairman In-hwa Chang: “We will diversify the lithium supply chain and leap forward as the world’s No. 1 lithium company”
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.
This initiative is part of POSCO Group’s secondary battery materials business strategy, which prioritizes securing high-quality resources through swift and aggressive investments in global lithium assets, thereby enhancing cost competitiveness and ensuring a stable supply of raw materials.
On November 11, POSCO Holdings decided to acquire a 30% stake in a newly established intermediate holding company of Mineral Resources, a leading Australian mining company. The investment amounts to approximately USD 765 million, or about KRW 1 trillion.
Through this investment, POSCO Holdings will be able to stably secure 270,000 tons of lithium concentrate annually from Mineral Resources’ globally top-tier lithium mines — the Wodgina Mine and the Mt. Marion Mine in Western Australia. This figure reflects the planned production capacity expansion of the two mines and is equivalent to producing 37,000 tons of lithium hydroxide, enough to power approximately 860,000 electric vehicles.
The strategic equity investment in the Australian lithium mines will allow POSCO Holdings to participate in mine management and secure dividend income, with plans to pursue phased business expansion into lithium concentrate refining when the market enters a full growth phase.
In addition, POSCO Holdings is accelerating the acquisition of high-quality brine lithium resources.
On November 5, POSCO Holdings decided to invest USD 65 million (approximately KRW 95 billion) to acquire 100% of the shares in the Argentine subsidiary of Lithium South (LIS), a Canadian resource development company that owns mining rights within the Hombre Muerto salt lake in Argentina.
Having already acquired key mining rights in the Hombre Muerto salt lake in 2018, POSCO Holdings will, through this adjacent mining rights acquisition, secure additional resources and land in one of the world’s highest-grade lithium deposits. The company expects strong synergies with its existing lithium projects in Argentina, leveraging already established infrastructure and operational know-how.
Chairman In-hwa Chang of POSCO Group stated, “Securing raw material competitiveness is paramount to becoming the world’s No. 1 lithium company. We will diversify the global lithium supply chain through active investments.”
Chris Ellison, CEO of Mineral Resources, said, “We are pleased to see our solid partnership with POSCO Group, which began with the Onslow iron ore mine project in Western Australia, expand into the lithium business. We look forward to combining our capabilities to continuously create value at the Wodgina and Mt. Marion mines.”
Since Chairman In-hwa Chang took office last year, POSCO Group has reorganized its business portfolio into “2 Core (Steel & Secondary Battery Materials) + New Engine (New Businesses).” Through future growth investments in its core businesses, the group aims to go beyond its long-standing mission of “patriotism through steelmaking” to realize “materials patriotism” by localizing secondary battery materials and contributing to the enhancement of national economic and industrial competitiveness.
▲ The Wodgina lithium mine in Western Australia, owned and operated by Australian Mineral Resources.
▲ Hombre Muerto lithium salt lake, Argentina.