POSCO Holdings announced a bold investment of 1.1 trillion won (approximately $760 million) to strengthen its secondary battery materials raw material competitiveness by securing high-quality lithium resources in Australia and Argentina. This strategic move is part of POSCO Group’s wider plan to expand its battery materials business and establish a stable supply chain for key raw materials.
On November 11, POSCO Holdings decided to acquire a 30% stake in Mineral Resources, a leading mining company based in Australia and newly established as a holding company. The investment amounts to about $76.5 million (approximately 1 trillion won).
Through this investment, POSCO Holdings will secure a stable annual supply of 270,000 tons of lithium concentrate from Mineral Resources’ operations in Western Australia’s Wodgina and Mt. Marion mines. This quantity equates to around 37,000 tons of lithium hydroxide, enough to produce batteries for approximately 860,000 electric vehicles.
In addition to participating in mine management and receiving dividend income, POSCO Holdings is considering expanding into lithium refining business in the future.
Meanwhile, POSCO Holdings has been accelerating efforts to procure lithium from brine sources. On November 5, it invested $65 million (about 950 billion won) to acquire a 100% stake in the Argentine local subsidiary of Lithium South, which owns rights to resources in the Hombre Muerto salt flat in Argentina. This follows an earlier move in 2018 when POSCO secured key mining rights in the same region.
With these additional acquisitions, POSCO will expand its resources and land holdings at one of the world’s highest-grade lithium deposits. The company aims to maximize synergy by leveraging existing infrastructure and operational expertise in Argentina’s lithium development.
Jang In-hwa, chairman of POSCO Group, stated, “Securing raw material competitiveness is essential for us to become the No. 1 player in the global lithium market. Through aggressive investment, we will diversify our global supply chain and strengthen our lithium business competitiveness.”
Chris Ellison, CEO of Mineral Resources, expressed enthusiasm, saying, “We are delighted to expand our partnership with POSCO Group from the Onslow iron ore project into the lithium sector. We look forward to creating continuous value from the Wodgina and Mt. Marion mines through our combined capabilities.”
Since its new chairman’s appointment, Jang In-hwa has driven the group’s restructuring into a ‘2 Core + New Engine’ business portfolio, focusing beyond steel to localize secondary battery materials, thereby reinforcing national industrial competitiveness and pursuing the vision of ‘Materials for the Nation.’
