"Securing Premium Resources as Top Priority" — POSCO Group Focuses on Strengthening Raw Material Competitiveness

[Financial News]
POSCO Holdings Inc. will invest 1.1 trillion KRW to secure premium lithium resources in Australia and Argentina. Prioritizing the acquisition of high-quality resources, this move is part of POSCO Group’s battery materials business strategy to enhance cost competitiveness and ensure stable raw material supply through swift and aggressive global lithium investments.
Since the appointment of Chairman Chang In-hwa in March last year, POSCO Group has proactively established a ‘full battery value chain’ strategy. The company is responding flexibly to global market changes, particularly the trend toward domestic-centric battery industry networks.
On the 12th, POSCO Holdings Inc. decided to acquire 100% of the shares in the Argentine subsidiary of Lithium South (LIS), a Canadian resource development company holding mining rights in the Hombre Muerto Salt Flat, for $65 million (about 95 billion KRW). Additionally, the company will acquire a 30% stake in a new intermediate holding company to be established by Australia’s Mineral Resources Limited. The Australian investment amounts to approximately $765 million, or 1 trillion KRW, bringing the total investment to around 1.1 trillion KRW.
Through this investment, POSCO Holdings Inc. will be able to secure a stable annual supply of 270,000 tons of lithium concentrate. This figure reflects the planned production capacity expansions at both mines and is equivalent to producing 37,000 tons of lithium hydroxide—enough for about 860,000 electric vehicles. The strategic equity investment in the Australian lithium mine will allow POSCO Holdings Inc. to participate in mine management and receive dividend income, with plans to expand into lithium concentrate refining as the market enters a full growth phase.
POSCO Holdings Inc. is also accelerating efforts to secure premium brine lithium. Having acquired key mining rights in the Hombre Muerto Salt Flat in 2018, the company will now obtain additional resources and land in this world-class, high-grade lithium deposit through the latest acquisition. Leveraging existing infrastructure and operational expertise, POSCO Holdings Inc. expects strong synergies with its ongoing lithium projects in Argentina.
Chris Ellison, CEO of Mineral Resources Limited, stated, “We are pleased that our solid partnership with POSCO Group, which began with the Onslow iron ore project in Western Australia, is now expanding into the lithium sector. By combining our strengths, we look forward to continuously creating value at the Wodgina and Mount Marion mines.”
Since his appointment last year, Chairman Chang In-hwa has focused on securing supply chains for key materials.
In September last year, POSCO Group signed a $40 million investment agreement with Australian mining company Black Rock Mining to secure additional battery and industrial graphite. As a result, POSCO Group now holds a 19.9% stake in Black Rock Mining, which owns the Mahenge Mine in Tanzania, Africa. This early acquisition of graphite from the mine has helped establish a robust supply chain.
In May, POSCO Group opened the Australia Core Resources Research Institute in Perth, Australia, to secure cutting-edge technological competitiveness in steel, battery material raw materials, and rare earths. This is the first time a Korean company has established a specialized resource research institute in a resource-producing country.
The Australia Core Resources Research Institute serves as a hub for group mineral R&D, carrying out projects in collaboration with local raw material suppliers and research institutions in key business areas such as economical low-carbon steelmaking and raw material utilization, as well as cost reduction technologies for lithium and nickel. The institute is also researching rare earth supply chains and high-efficiency separation and refining technologies, exploring new business opportunities in next-generation critical minerals, and identifying investment opportunities in top global mines through local information exchange.
Furthermore, in April, POSCO Group began joint development of critical mineral technologies—essential for batteries, renewable energy, and semiconductors—with the Korea Institute of Geoscience and Mineral Resources (KIGAM).
padet80@fnnews.com Park Shin-young Reporter