POSCO Holdings agreed to acquire a 30% stake in Mineral Resources’ lithium business for $765 million, marking the first major Korean investment in Australian hard-rock lithium assets. The transaction provides the steel giant with guaranteed supply to feed processing facilities in South Korea as it diversifies beyond its traditional business.
The investment gives POSCO access to 270,000 tons of lithium concentrate annually from the Wodgina and Mt Marion mines, enough to produce roughly 37,000 tons of lithium hydroxide. The deal values MinRes’ existing 50% interest in the two operations at approximately A$6 billion ($3.9 billion), though the Australian miner attempted to sell assets for more than A$3 billion earlier this year before negotiations stalled.
POSCO operates lithium hydroxide plants in South Korea with 43,000 tons of annual capacity, processing spodumene from its existing partnership with Pilbara Minerals. The company also invested $65 million to acquire full ownership of lithium rights in Argentina’s Hombre Muerto salt lake, bringing total recent lithium spending to 1.2 trillion won ($817 million).
MinRes will continue operating both mines under existing agreements with Albemarle at Wodgina and Jiangxi Ganfeng Lithium at Mt Marion. The transaction requires regulatory approvals including from Australia’s Foreign Investment Review Board, with completion expected in the first half of 2026.
The timing positions POSCO to benefit from recovering lithium prices, which have nearly doubled from 2024 lows, though they remain well below 2022 peaks. MinRes plans to use proceeds to reduce debt and strengthen its balance sheet.
