Seoul: POSCO Holdings, South Korea's leading steelmaker, announced that it has signed a 1.1 trillion-won (US$765 million) agreement to acquire a 30 percent stake in an Australian lithium mine operator. This strategic move is part of POSCO's efforts to secure essential materials for its secondary battery material business.
According to Yonhap News Agency, under the terms of the agreement, POSCO will form an incorporated joint venture with Mineral Resources. This partnership grants POSCO rights to 30 percent of the lithium concentrate produced from two significant mines, Mount Marion and Wodgina, located in Western Australia.
The Wodgina mine ranks among the world's top five largest lithium mines, boasting approximately 6.2 million tons of lithium carbonate reserves. Meanwhile, the Mount Marion mine is estimated to contain around 2.2 million tons of lithium carbonate, as reported by POSCO.
The combined output from these mines, including planned capacity expansions, is projected to produce about 37,000 tons of lithium hydroxide. This amount is sufficient to power approximately 860,000 electric vehicles, highlighting the substantial impact this deal could have on the electric vehicle industry.
POSCO emphasized that the partnership with Mineral Resources is anticipated to ensure a stable supply of lithium, a critical component used in secondary batteries for electric vehicles.