Buenos aires: South Korean steelmaker POSCO Group said Thursday it has acquired the full ownership of a lithium mining firm in Argentina as part of efforts to strengthen its rechargeable battery materials business. The company purchased a 100 percent stake in the local subsidiary of Lithium South Development Corp., which holds mining rights to the Hombre Muerto North (HMM) salt lake, for 95 billion won (US$65 million).

According to Yonhap News Agency, with the addition of the HMM project, which is estimated to contain 1.58 million tons of lithium, POSCO has secured a total of 15 million tons of lithium resources in Argentina. Of the total, the company expects to extract at least 3 million tons, enough to support the production of approximately 70 million electric vehicles.

"Based on the additional lithium resources secured, the company will enhance its ability to respond to global market changes and strengthen the competitiveness of its supply chain," a company official said.

In November, POSCO announced plans to invest a combined 1.1 trillion won to secure lithium resources in Argentina and Australia as it seeks to develop its energy materials business into a key growth driver, alongside its core steel operations.