Mineral Resources Expands Lithium Partnerships with POSCO
Australia’s Mineral Resources (ASX: MIN) confirmed it will sell a 30% stake in its operational lithium business to South Korea’s POSCO Holdings (005490.KS) for $765 million. The transaction creates a new joint venture that includes MinRes’ 50% ownership of the Wodgina and Mt Marion lithium mines. POSCO will gain a 15% indirect interest in each project, strengthening its access to spodumene concentrate for downstream processing.
The Wodgina and Mt Marion mines rank among Western Australia’s most critical lithium sources. Wodgina operates with Albemarle (ALB.N), while Mt Marion partners with China’s Ganfeng Lithium (002460.SZ). MinRes will continue operating the mines under existing agreements, ensuring operational continuity and production stability.
Strategic Impact of POSCO Investment in Australian Lithium
POSCO’s acquisition aligns with its plans to expand lithium processing and support global EV battery supply chains. The joint venture builds on MinRes’ Onslow Iron JV, signaling confidence in long-term Australian lithium demand. Regulatory approval, including clearance from Australia’s Foreign Investment Review Board, remains a key step before the deal finalizes.
The transaction also diversifies lithium ownership in Australia, balancing interests between domestic miners and international partners. As EV adoption rises, securing stable lithium supply becomes crucial for energy transition strategies globally.
SuperMetalPrice Commentary:
This sale underscores the growing strategic importance of Australian lithium to global EV and battery markets. POSCO’s stake ensures direct access to high-quality spodumene, reducing dependence on Chinese supply. MinRes retains operational control, safeguarding production efficiency while benefiting from substantial capital injection to fund growth.
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