POSCO Holdings Invests 1.2 Trillion Won to Secure Secondary Battery Material Raw Materials

Acquisition of Stake in Australian Mine Holding Company
Annual Supply of 270,000 Tons of Lithium Concentrate
Securing Mining Rights in Argentine Salt Lake

POSCO Holdings has secured high-quality lithium resources in Australia and Argentina by investing 1.2 trillion won, aiming to strengthen its competitiveness in secondary battery material raw materials. The company plans to proactively invest in global lithium resources to enhance both cost competitiveness and supply chain stability.

On November 12, POSCO Holdings announced its decision to acquire a 30% stake in a new intermediate holding company to be established by Australian mining company Mineral Resources. The investment amounts to 765 million dollars (1.1 trillion won).

Wodgina lithium mine in Western Australia owned and operated by Australian Mineral Resources Ltd. Provided by POSCO Holdings

Through this investment, POSCO will be able to stably procure 270,000 tons of lithium concentrate annually from Wodgina and Mt. Marion, global top-tier lithium mines operated by Mineral Resources in Western Australia. This quantity is sufficient to produce 37,000 tons of lithium hydroxide, enough to manufacture batteries for approximately 860,000 electric vehicles. By participating in the equity of Australian lithium mines, POSCO Holdings will secure partial management rights and dividend income, while also planning a phased expansion into lithium concentrate refining during the market's growth phase.

The company is also accelerating its efforts to secure lithium brine resources. On November 5, POSCO Holdings invested 65 million dollars (about 95 billion won) to acquire 100% of the Argentine subsidiary of Canadian resource developer Lithium South, which holds mining rights in the Hombre Muerto salt lake in Argentina. Following its acquisition of major mining rights in the same salt lake in 2018, POSCO Holdings has now secured additional resources in adjacent areas. The company plans to maximize synergies in its local lithium business by leveraging its existing infrastructure and operational expertise.

POSCO Group Chairman Chang Inhwa stated, "Securing competitiveness in raw materials is more important than anything else for us to become the world's leading lithium company," and added, "We will diversify our global lithium supply chain through active investment." Chris Ellison, CEO of Mineral Resources, commented, "We are pleased that our collaboration with POSCO Group, which began with the Onslow iron ore project, has expanded into the lithium sector," and added, "By combining the capabilities of both companies, we will continue to create value at the Wodgina and Mt. Marion mines."

This investment is seen as a concrete example of the '2-Core (Steel & Secondary Battery Materials) + New Engine' strategy being pursued by POSCO Group since Chairman Chang Inhwa took office. By establishing a value chain that connects everything from raw material procurement to refining and material production in the secondary battery materials sector, POSCO has solidified its second growth axis.

In particular, POSCO's lithium business, which began with the acquisition of the Argentine salt lake in 2018, is now further materialized through this investment in Australian mines, advancing its 'internalization of mineral resources' strategy. The move is also interpreted as an effort to enhance supply chain stability and cost competitiveness through participation in mine equity. A company representative stated, "By investing in the future growth of our core businesses, we aim to go beyond our half-century legacy of 'national prosperity through steelmaking' and realize 'national prosperity through materials' by localizing secondary battery materials and strengthening the nation's industrial competitiveness."

This content was produced with the assistance of AI translation services.