South Korean steel and battery materials conglomerate POSCO Holdings (NYSE:PKX,KRX:005490) has finalized a US$765 million agreement with Perth-based Mineral Resources (MinRes) (ASX:MIN,OTCPL:MALRF) to acquire a 30 percent stake in two Australian hard-rock lithium mines.
POSCO will take a 30 percent equity stake in the new venture and secure the rights to 30 percent of the lithium concentrate produced at the Wodgina and Mount Marion lithium mines in Western Australia.
The offtake agreement, announced on May 1, guarantees POSCO stable supply of roughly 270,000 metric tons of lithium concentrate annually. This volume is expected to yield 37,000 metric tons of battery-grade lithium hydroxide per year, which is sufficient to power more than 900,000 electric vehicles.
Wodgina ranks among the five largest hard-rock lithium operations globally, holding approximately 6.2 million metric tons of lithium carbonate equivalent reserves with a high-grade concentrate of around 5.5 percent.
Meanwhile, the neighboring Mount Marion mine holds an estimated 2.2 million metric tons in reserves.
The finalization of the deal, which was initially outlined in a November 2025 preliminary agreement, coincides with a recovery in the lithium market. After a two year slump, prices have surged by nearly 50 percent since the beginning of the year, driven by tightening supply out of China and accelerating demand from the energy storage sector.
POSCO views the acquisition as a cornerstone of its “materials patriotism” strategy championed by Chair In-hwa Chang. It aims to localize the secondary battery materials supply chain and reduce reliance on third-party raw materials.
“Securing raw material competitiveness is paramount to becoming the world’s No. 1 lithium company. We will diversify the global lithium supply chain through active investments,” Chang said when the strategy was formalized late last year.
“This partnership combines Mineral Resources’ mining expertise with POSCO Holdings’ processing technology, contributing to the stabilization of the global battery materials supply chain,” said POSCO president Lee Joo-tae. “We will strengthen our long-term partnership in the global lithium market based on mutual trust.”
For Mineral Resources, the partial divestment provides a necessary capital injection designed to reduce corporate debt.
Concurrent with the preliminary Australian agreement last November, POSCO invested US$65 million to acquire the Argentine subsidiary of Canada’s Lithium South (TSXV:LIS,OTCQB:LISMF).
The transaction secured 100 percent of the mining rights adjacent to POSCO’s existing holdings within the Hombre Muerto salt lake in Argentina, consolidating one of the world’s highest-grade lithium brine deposits.
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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.
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