This file photo provided by POSCO Holdings shows the Wodgina lithium mine operated by Australian miner Mineral Resources Ltd. in West Australia. (Yonhap)
SEOUL, Nov. 12 (Korea Bizwire) – South Korean steelmaker POSCO Group said Wednesday it will invest 1.1 trillion won (US$750 million) to secure lithium resources in Australia and Argentina to bolster its rechargeable battery materials business.
POSCO will acquire a 30 percent stake in a subholding company to be established by Australian miner Mineral Resources Ltd. (MinRes) for 1 trillion won, the company said in a press release.
The investment will allow POSCO to secure 270,000 tons of lithium concentrate per year from the Wodgina and Mt. Marion mines operated by MinRes in Western Australia. The supply is sufficient to produce 37,000 tons of lithium hydroxide, enough for about 860,000 electric vehicles (EVs), it said.
“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,” POSCO Holdings Chief Executive Chang In-hwa said.
MinRes Chairman Malcolm Bundey said the investment marks a milestone for the Australian lithium industry.
This first-of-its-kind investment by a major Korean company in Australian lithium will support the development of new global conversion capacity, help diversify the global lithium supply chain, and strengthen bilateral ties between Australia and Korea in critical minerals, Bundey said.
In Argentina, POSCO will acquire a 100 percent stake in the local subsidiary of Canadian resources developer Lithium South Development Corp. (LIS), which owns lithium mining rights in the Hombre Muerto salt lake, for 95 billion won, the company said.
(Yonhap)
