Posco to invest $818 million in lithium deals with Australia, Argentina
Published: 12 Nov. 2025, 17:44
Updated: 12 Nov. 2025, 18:02
![A view of the Wodgina lithium mine in Australia, owned and operated by Australia’s Mineral Resources [POSCO]](https://koreajoongangdaily.joins.com/data/photo/2025/11/12/673b32f0-f1af-4e2c-8122-29827c44f7b5.jpg)
A view of the Wodgina lithium mine in Australia, owned and operated by Australia’s Mineral Resources [POSCO]
Posco will invest approximately 1.2 trillion won ($818 million) in two lithium resource deals in Australia and Argentina, aiming to strengthen its supply of raw materials for secondary battery production and boost cost competitiveness.
The company announced on Wednesday that it will acquire a 30 percent stake in a new intermediate holding company being formed by Australian mining giant Mineral Resources (MinRes).
The Posco-MinRes deal is valued at $765 million. Through the investment, Posco will secure an annual supply of 270,000 tons of lithium concentrate from MinRes's Wodgina and Mount Marion mines — enough to produce 37,000 tons of lithium hydroxide, which can power around 860,000 electric vehicles (EVs).
Posco said the deal will be finalized once it receives approval from Australia’s Foreign Investment Review Board.
Posco on Nov. 5 also acquired 100 percent of an Argentinian firm — which holds mining rights to a portion of the Salar del Hombre Muerto salt lake — for $65 million. The acquisition expands Posco’s holdings at the site, as it first secured rights to the salt lake's northern section in 2018. The company is currently building a lithium hydroxide production plant there through its local subsidiary Posco Argentina S.A.U.
The dual investment positions Posco to become a major player in the global lithium supply chain. Lithium is a critical ingredient in cathodes for lithium-ion batteries, which are used in everything from EVs to energy storage systems.
According to a report published in January by the U.S. Geological Survey, 87 percent of global lithium consumption last year was for battery manufacturing. Global demand reached 220,000 tons in 2024, up 29 percent from an estimated 170,000 tons in 2023.
As global demand grows, countries are racing to secure high-quality lithium deposits, which are concentrated in a limited number of regions.
Major hard-rock mining sites include nine in Australia, one in Brazil, two in Canada and seven in China.
Argentina, Chile and China account for most of the world’s lithium production from brine, with four sites in Argentina, two in Chile and five in China.
![A view of the Salar del Hombre Muerto lithium salt lake in Argentina [POSCO]](https://koreajoongangdaily.joins.com/data/photo/2025/11/12/d44556ba-8c40-43f9-9b06-69ea6ed79860.jpg)
A view of the Salar del Hombre Muerto lithium salt lake in Argentina [POSCO]
Australia was the world’s top lithium producer last year at 88,000 tons, followed by Argentina with 49,000 tons and China with 41,000 tons.
The United States is pursuing projects to build a domestic lithium supply chain, such as the Thacker Pass project, or developing the largest lithium deposit in North America in northern Nevada. Following China's moves to weaponize rare earth resources, the U.S. Department of Energy said last month it would restructure loan terms with the project’s operator and secure a 5 percent stake in both the operator and the project.
Posco plans to strengthen its presence in the global lithium market through its latest acquisitions. While Chinese company Tianqi Lithium, one of the world’s top five lithium producers, currently produces around 70,000 tons annually, Posco aims to raise its production capacity to 93,000 tons by next year.
The lithium sourced from the company’s mines and brine fields will be processed into lithium hydroxide at its facilities in Gwangyang, South Jeolla, and at Posco Argentina S.A.U.
Since last year, Posco has been reorganizing its business portfolio around two core pillars: steel and battery materials. Steel, which accounted for about 54 percent of its total revenue last year, continues to face challenges from rising protectionism, including tariffs of up to 50 percent in the United States.
“We are investing for long-term growth beyond the EV boom,” a Posco representative said. “Through domestic production of battery materials, we aim to go beyond steel and contribute to Korea’s industrial competitiveness.”
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE SU-JEONG [[email protected]]
with the Korea JoongAng Daily
To write comments, please log in to one of the accounts.
Standards Board Policy (0/250자)