POSCO Holdings is stepping up efforts to secure critical battery materials by investing in major lithium mining assets in Australia, as competition for electric vehicle supply chains intensifies globally.

The company has signed a $765 million agreement with Mineral Resources in Perth to acquire a 30% stake in an intermediate holding entity that oversees key lithium mining operations. The deal formalizes an investment plan first outlined late last year and marks a significant move to strengthen upstream resource access.

Under the agreement, POSCO Holdings will gain rights to approximately 30% of lithium concentrate produced from the Wodgina and Mt Marion mines in Western Australia. Both sites are considered among the country’s leading lithium assets, known for their relatively high ore quality and stable production track records.

The investment goes beyond financial returns, focusing on long-term supply security. By securing access to lithium concentrate, POSCO Holdings aims to reduce exposure to market volatility while reinforcing its integrated value chain from raw material extraction to battery material production.

The company has recently expanded its resource portfolio, including additional investments in lithium brine assets in Argentina, as part of a broader strategy to secure high-quality global resources. Industry observers note that vertical integration—from mining to materials processing—is becoming a key competitive factor in the rapidly growing battery sector.

The partnership also highlights complementary strengths between the two companies, combining Mineral Resources’ mining expertise with POSCO Holdings’ downstream processing and materials technology.

POSCO Holdings said the agreement is expected to provide both stable dividend income and a long-term foundation for raw material supply, supporting its ambition to strengthen its position in the global battery materials market.

Lee Jun-sung More by this reporter