POSCO Holdings Inc. is expanding its battery materials footprint through a new partnership with Australian mining giant Hancock Prospecting, building on their decade-long relationship in iron ore.
The Korean steelmaker signed a memorandum of understanding with Hancock to develop lithium supply capabilities, targeting annual production of 30,000 tons. The companies will evaluate potential plant locations, including South Korea, with investment details to be determined.
The deal helps POSCO navigate US restrictions on foreign entities while securing critical battery materials. The company already produces 68,000 tons of lithium annually from facilities in Argentina, enough to power 1.6 million electric vehicles.
For Hancock, primarily known for iron ore mining, the agreement marks its latest push into battery metals and rare earths. The two companies have collaborated since 2010, when POSCO acquired a 12.5% stake in Hancock’s Roy Hill iron ore mine. They further cemented ties in 2022 by jointly purchasing Australian gas producer Senex Energy.
POSCO is taking advantage of the current market slowdown to build out its lithium operations. The company aims to position itself as a dominant player when demand recovers, focusing on a vertically integrated supply chain from mining through recycling.
The deal gives POSCO access to Hancock’s extensive mining assets while strengthening its battery materials portfolio spanning lithium hydroxide and cathode materials.
