POSCO Holdings Inc., which owns South Korea’s prime steelmaker POSCO, mentioned on Wednesday that it’s investing 1.2 trillion received ($817 million) to safe lithium, a key uncooked materials for electrical car batteries, from mines in Australia and Argentina.
The South Korean steel-to-battery supplies conglomerate mentioned in an announcement that it’s buying a 30% stake in a newly established intermediate holding firm established by Australian miner Mineral Sources Ltd. (MinRes) for 1.1 trillion received ($765 million).
The funding will enable POSCO to yearly safe 270,000 tons of lithium focus from the Wodgina and Mt. Marion mines operated by MinRes in Western Australia.
The availability is sufficient to produce round 37,000 tons of lithium hydroxide yearly, adequate for about 860,000 EVs.
The deal additionally permits POSCO to take part in mine administration and obtain dividends, in addition to to discover downstream collaboration similar to refining and processing lithium focus because the market expands, in line with the Korean firm.
Chris Ellison, chief govt of Mineral Sources, mentioned he was happy to see the partnership with POSCO, which started with the Onslow iron ore undertaking in Western Australia, broaden into lithium.
“By combining our respective strengths, we look ahead to creating long-term worth from the Wodgina and Mt Marion operations,” he mentioned.
PROJECTS IN ARGENTINA
Individually, POSCO mentioned it agreed to accumulate the total possession of the Argentine subsidiary of Canadian sources developer Lithium South Improvement Corp. (LIS), which holds lithium mining rights within the Hombre Muerto salt lake, for 95 billion received.
The acquisition will broaden POSCO’s footprint in one of many world’s richest lithium brine deposits, supplementing the mining rights it secured there in 2018.
“POSCO Group views the power supplies enterprise as a core progress driver alongside our metal operations, and we’re dedicated to securing a steady, cost-competitive provide of uncooked supplies to boost our long-term competitiveness,” mentioned POSCO Holdings Chairman Chang In-hwa.
As soon as identified solely as Korea’s prime steelmaker, POSCO has in recent times reworked itself right into a key participant within the world battery supplies business.
The group mentioned it’s investing closely throughout the EV provide chain, from lithium extraction and refining to cathode and anode supplies, as a part of its ambition to turn into a totally built-in “inexperienced supplies” firm.
