South Korean steel and battery materials giant POSCO Holdings has finalized a significant US$765 million agreement to acquire a 30 percent stake in two key Australian hard-rock lithium mines operated by Mineral Resources (MinRes). This strategic acquisition grants POSCO both equity in a new venture and guaranteed access to a substantial portion of the lithium concentrate produced at the Wodgina and Mount Marion mines, located in Western Australia.
Securing Critical Lithium Supply
The finalized deal, initially outlined in a preliminary agreement in November 2025, underscores POSCO’s commitment to securing a stable and diversified supply of critical raw materials for the burgeoning electric vehicle (EV) and energy storage sectors. Under the terms of the agreement, POSCO will hold a 30 percent equity stake in the joint venture. Crucially, this also secures the rights to 30 percent of the lithium concentrate output from these two major Australian operations.
An offtake agreement, announced on May 1, is set to provide POSCO with a consistent supply of approximately 270,000 metric tons of lithium concentrate annually. This volume is projected to yield an estimated 37,000 metric tons of battery-grade lithium hydroxide per year. This quantity is substantial enough to power more than 900,000 electric vehicles, highlighting the scale of the supply secured by the deal.
World-Class Lithium Assets
The mines involved in the transaction are substantial assets within the global lithium landscape. Wodgina is recognized as one of the top five largest hard-rock lithium operations worldwide, boasting approximately 6.2 million metric tons of lithium carbonate equivalent (LCE) reserves with a high-grade concentrate of around 5.5 percent. The adjacent Mount Marion mine contributes an estimated 2.2 million metric tons in reserves, further bolstering the resource base.
The completion of this acquisition coincides with a notable recovery in the lithium market. Following a two-year downturn, lithium prices have experienced a significant surge, climbing by nearly 50 percent since the beginning of the year. This price appreciation is attributed to tightening supply dynamics, particularly out of China, and accelerating demand from the energy storage sector.
POSCO’s Strategic Vision: ‘Materials Patriotism’
POSCO views this investment as a cornerstone of its strategic initiative, termed ‘materials patriotism,’ championed by Chair In-hwa Chang. The overarching goal of this strategy is to localize the secondary battery materials supply chain and diminish reliance on third-party raw material suppliers. “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 stated when the strategy was formalized late last year.
Lee Joo-tae, President of POSCO, emphasized the synergistic nature of the partnership. “This partnership combines Mineral Resources’ mining expertise with POSCO Holdings’ processing technology, contributing to the stabilization of the global battery materials supply chain,” he remarked. “We will strengthen our long-term partnership in the global lithium market based on mutual trust.”
Mineral Resources’ Capital Injection and Diversification
For Mineral Resources, the partial divestment of its lithium assets serves as a crucial capital injection aimed at reducing corporate debt. This strategic move allows MinRes to deleverage its balance sheet while retaining significant operational involvement and a substantial stake in its valuable lithium projects.
This Australian transaction follows POSCO’s earlier strategic move in November 2025, when it invested US$65 million to acquire the Argentine subsidiary of Canada’s Lithium South. That 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 and further diversifying its global lithium resource portfolio.
The dual strategy of investing in both hard-rock lithium in Australia and brine resources in South America positions POSCO Holdings to be a formidable player in the global battery materials market, aligning with its ambition to achieve global leadership in lithium production and supply chain control.
