POSCO's Bold $887M Lithium Investment: A Game-Changer in the Electric Vehicle Supply Chain

POSCO Holdings is investing 1.2 trillion won in securing lithium assets in Australia and Argentina, enhancing its global lithium supply chain role. This move, including a partnership with Mineral Resources, aims to stabilize lithium concentrate supply and bolster its influence in the electric vehicle industry.

POSCO Holdings, a South Korean steel conglomerate, has unveiled ambitious plans to infuse 1.2 trillion won (approximately USD 887 million) into the global lithium supply chain, as reported by Pulse, the English service of Maeil Business News Korea. This substantial investment is earmarked to secure high-grade lithium reserves in Australia and Argentina.

As part of the strategy, POSCO is set to acquire a 30% stake in a new holding company to be established by Australia's Mineral Resources for USD 765 million. This alliance will ensure a reliable annual supply of 270,000 tons of lithium concentrate from Mineral Resources' significant mining operations in Western Australia, sufficient to produce about 37,000 tons of lithium hydroxide for powering nearly 860,000 electric vehicles.

In addition to securing consistent materials supply, POSCO's partnership includes involvement in mining operations and potential dividend income. Coupled with a USD 65 million investment to take full ownership of Lithium South Development Corporation's Argentine subsidiary, this expansion is poised to cement POSCO's standing in the rapidly growing electric vehicle market.

(With inputs from agencies.)