Seoul: South Korean steelmaker POSCO Group announced it will invest 1.1 trillion won (US$750 million) to secure lithium resources in Australia and Argentina to bolster its rechargeable battery materials business.

According to Yonhap News Agency, POSCO will acquire a 30 percent stake in a subholding company to be established by Australian miner Mineral Resources Ltd. (MinRes) for 1 trillion won. This strategic move will enable POSCO to secure 270,000 tons of lithium concentrate annually from the Wodgina and Mt. Marion mines operated by MinRes in Western Australia. The acquisition is expected to produce 37,000 tons of lithium hydroxide, which is sufficient for approximately 860,000 electric vehicles (EVs).

POSCO Holdings Chief Executive Chang In-hwa emphasized the significance of the energy materials business as a core growth driver alongside their steel operations. The company is focused on securing a stable, cost-competitive supply of raw materials to enhance its long-term competitiveness.

MinRes Chairman Malcolm Bundey highlighted the investment as a landmark event for the Australian lithium industry. This collaboration represents the first major investment by a Korean company in Australian lithium, which will support the development of new global conversion capacity, diversify the global lithium supply chain, and strengthen bilateral ties between Australia and Korea in critical minerals.

In Argentina, POSCO will acquire a 100 percent stake in the local subsidiary of Canadian resources developer Lithium South Development Corp. (LIS), which holds lithium mining rights in the Hombre Muerto salt lake, for 95 billion won.