SEOUL, November 12 (AJP) - South Korea's POSCO Holdings is expanding its global footprint in lithium, the critical ingredient for electric vehicle batteries, with new investments worth 1.1 trillion won, or about $800 million, in Australia and Argentina.
The move is part of the steel and battery materials company’s drive to secure key resources as global competition for battery metals intensifies.
The company said Wednesday that it will acquire a 30 percent stake in a new holding company created by Australia’s Mineral Resources for $765 million, or roughly 1 trillion won. The deal gives POSCO access to 270,000 tons of lithium concentrate a year from the Wodgina and Mt. Marion mines in Western Australia — enough to produce 37,000 tons of lithium hydroxide, sufficient for about 860,000 electric vehicles.
Beyond securing supply, the investment allows POSCO to take part in mine management and receive dividends, with an eye toward eventually expanding into refining lithium concentrate as global demand rises.
In a separate move, POSCO said it will invest $65 million to acquire full ownership of the Argentine subsidiary of Lithium South, a Canadian resource developer that holds mining rights in the Hombre Muerto salt flat, one of the world’s richest lithium brine deposits.
The Argentine acquisition, announced on Nov. 5, will give POSCO additional land and resources in the region, where it already operates lithium extraction projects. The company expects the deal to create operational synergies by leveraging its existing infrastructure and expertise in the area.
“Securing raw material competitiveness is crucial to becoming the world’s leading lithium company,” POSCO Group Chairman Jang In-hwa said in a press release. “We will continue to diversify our global lithium supply chain through active investment.”
POSCO’s latest push comes as demand for battery materials surges amid the accelerating shift to electric vehicles. Major producers from China to the United States are racing to lock in access to lithium deposits, a strategic resource expected to face supply constraints over the next decade.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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