POSCO Holdings strengthens battery materials supply chain with Australian investment

POSCO Holdings has strengthened its position in the global battery materials supply chain after securing a 30% stake in a joint venture called LithCo with Australian miner Mineral Resources (MinRes). MinRes will retain a 70% interest in the new entity. 

The South Korean steelmaker will invest US$765 million for its share in the Wodgina and Mt Marion lithium mines, in which MinRes has 50% ownership. 

The Wodgina mine is one of the world’s largest hard rock lithium mines, with a resource of approximately 6.2 million tons of lithium carbonate equivalent (LCE). The Mt Marion mine has a resource of approximately 2.2 million tons of LCE. 

As part of the investment, POSCO Holdings will receive spodumene concentrate in proportion to its 15% interest in each mine, underpinning its future investment in new downstream processing facilities. 

MinRes will continue to operate both mines under existing agreements with its joint venture partners – Albemarle Corporation at Wodgina and Jiangxi Ganfeng Lithium at Mt Marion. 

Diversifying and strengthening supply chains 

POSCO Holdings has been strengthening its position in the battery materials supply chain. In addition to the MinRes investment, the company has acquired lithium salt lakes in Argentina. 

POSCO Holdings CEO In Hwa Chang says POSCO Group views the energy materials business as a core growth driver alongside its steel business. 

‘We are committed to securing a stable, cost-competitive supply of raw materials to enhance our long-term competitiveness,’ says Chang. 

‘We value strong, dependable partnerships, and Mineral Resources has consistently demonstrated the operational excellence and long-term vision we seek. Wodgina and Mt Marion are high-quality assets with proven scale, capable of sustaining our business for decades to come.’ 

MinRes Chair Malcolm Bundey says the first-of-its-kind investment by a major Korean company into Australian lithium is a milestone for the industry. 

‘It signals the growing global demand for Tier 1 hard rock lithium assets and the confidence international partners have in Australia’s ability to meet that demand,’ Bundey says. 

‘By supporting the development of new global conversion capacity, this partnership will play an important role in diversifying the global lithium supply chain and strengthen bilateral ties between Australia and Korea in critical minerals.’ 

POSCO Holdings’ investment in 2 Australian lithium mines will secure its place in the battery materials supply chain.

Austrade has offered extensive support to POSCO Holdings, providing regular market and policy updates and facilitating introductions to relevant stakeholders in Australia. This support has helped raise the profile of Australian companies such as MinRes as attractive investment targets and strengthened confidence in their projects. 

Australia’s critical minerals opportunities 

Building a resilient critical minerals industry that can contribute to global supply chains is a priority for the Australian Government under its Future Made in Australia agenda. Foreign capital and capability will be essential in meeting this goal. 

Australia offers strong investment opportunities across mining and midstream processing. The latest Australian Critical Minerals Prospectus showcases 94 investment-ready projects, comprising 58 upstream and 36 midstream projects. 

Find out why Australia is made for critical minerals investment. 

How Austrade can help 

The Australian Trade and Investment Commission (Austrade) supports foreign investors to establish and expand operations in Australia. Our experts in Australia and around the world can help you through every stage of your investment journey. 

We offer the latest industry insights, connections with key stakeholders and decision-makers, and virtual or physical site visits to Australia. Thousands of foreign businesses have worked with us to tap into the Australian market. 

For information on investment opportunities in Australia, contact an Austrade investment specialist.