Why POSCO's $765M Lithium Play Matters: Breaking Down the MinRes Deal

GasGuzzler · 2025-12-01T15:21:36+00:00

POSCO invested $765 million for a 30% stake in a lithium joint venture with Mineral Resources, gaining access to two major Australian assets. This partnership enhances supply chain security and combines mining with EV battery expertise, positioning both companies for growth in the lithium market.

GasGuzzler

2025-12-01 15:21:36

Abstract generation in progress

Korean steelmaker POSCO just dropped $765 million to grab 30% of a lithium joint venture with Australian miner Mineral Resources. Here’s what’s actually happening:

The Numbers

POSCO gets 30% stake | MinRes keeps 70% | Two Tier 1 Australian assets in the mix:

Wodgina: 820,000 tonnes annual spodumene concentrate capacity (5.5% Li₂O grade) near Port Hedland
Mt Marion: 600,000 tonnes SC6 equivalent capacity, co-owned with Ganfeng Lithium in Kalgoorlie region

Transaction closes H1 2026 (regulatory approvals pending).

Why This Matters

This isn’t just another M&A flex. Three things stand out:

1. Supply Chain Decoupling: Australia’s critical minerals getting locked into Korea-friendly partnerships. As MinRes chair Malcolm Bundey noted, this diversifies global lithium supply away from concentration risk.

2. Vertical Integration Play: POSCO brings downstream EV battery expertise; MinRes delivers mining scale. The partnership combines steelmaker muscle with mining know-how—exactly what the energy transition demands.

3. Proven Playbook: POSCO and MinRes already run Onslow Iron successfully together. This JV is essentially scaling up a working relationship. Onslow hit nameplate capacity and just fired up a new processing hub last October.

What Happens Now

Both mines will ramp production to feed Korea’s battery ambitions while Australia cements itself as the West’s lithium backbone. With EV demand still climbing, these Tier 1 assets have “decades of runway,” per POSCO CEO Hwa Chang.

Bottom line: $765M for a 30% stake in diversified, proven Australian lithium. Smart optionality for POSCO, capital injection for MinRes.

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