POSCO Holdings Invests 1.1 Trillion Won to Secure Global Lithium Resources

Enhancing Cost Competitiveness Through Aggressive Investment

POSCO Holdings will invest a total of 1.1 trillion won to secure high-quality lithium resources in Australia and Argentina, aiming to strengthen its competitiveness in secondary battery material raw materials.

This move is part of POSCO Group's secondary battery material business strategy, which prioritizes securing high-quality resources. By making swift and aggressive investments in global lithium resources, the company seeks to enhance cost competitiveness while simultaneously ensuring stable raw material supplies.

Wodgina lithium mine in Western Australia owned and operated by Australian Mineral Resources Ltd. Provided by POSCO Holdings

On November 11, POSCO Holdings announced its decision to acquire a 30% stake in a new intermediate holding company to be established by Mineral Resources, a leading Australian mining company. The investment amounts to approximately 765 million dollars, or about 1 trillion won.

Through this investment, POSCO Holdings will be able to stably secure 270,000 tons of lithium concentrate annually from the Wodgina and Mt. Marion mines, both global top-tier lithium mines operated by Mineral Resources in Western Australia. This figure reflects the planned expansion of production capacity at the two mines and is sufficient to produce 37,000 tons of lithium hydroxide, enough to power about 860,000 electric vehicles.

The strategic equity investment in the Australian lithium mines will allow POSCO Holdings to participate in mine management and receive dividend income. The company also plans to pursue phased business expansion, including lithium concentrate refining, as the market enters a period of robust growth.

In addition, POSCO Holdings is accelerating efforts to secure high-quality brine lithium resources.

On November 5, POSCO Holdings decided to acquire 100% of the shares in the Argentine local subsidiary of Lithium South, a Canadian resource development company that holds mining rights in the Hombre Muerto salt lake in Argentina, for 65 million dollars (approximately 95 billion won).

Having previously acquired major mining rights in the Hombre Muerto salt lake in 2018, POSCO Holdings will secure additional resources and land in this world-class, high-grade lithium deposit through the acquisition of the adjacent mining rights. The company expects strong synergy with its existing lithium business in Argentina, as it can actively leverage already established infrastructure and operational expertise.

POSCO Group Chairman Chang Inhwa stated, "Securing raw material competitiveness is more important than anything else in our quest to become the world's leading lithium company, and we will diversify our global lithium supply chain through active investment."

Chris Ellison, CEO of Mineral Resources, said, "We are pleased that the solid partnership with POSCO Group, which began with the Onslow iron ore mine project in Western Australia, is now expanding into the lithium business. We look forward to continuously creating value together at the Wodgina and Mt. Marion mines by combining the strengths of both companies."

Since Chairman Chang Inhwa took office last year, POSCO Group has reorganized its business portfolio under the '2 Core (Steel and Secondary Battery Materials) + New Engine (New Businesses)' strategy. By investing in the future growth of its core businesses, the company aims to move beyond its half-century legacy of steelmaking for the nation and realize its vision of 'materials for the nation' by contributing to the national economy and industrial competitiveness through the localization of secondary battery materials.