Posco, a South Korean steelmaker, has partnered with Hancock Prospecting, an Australian mining company, to construct a 30,000 metric tonne per year lithium processing plant. This development aims to strengthen their positions within the growing lithium market, crucial for electric vehicles (EVs) and renewable energy industries.

Strategic Expansion in Lithium Supply Chain

The planned lithium processing facility will play a significant role in securing a stable lithium supply chain. The joint venture seeks to cover the entire lithium value chain—from mining and extraction to the production of lithium hydroxide and cathode materials, followed by recycling. With a strategic emphasis on bypassing the US Foreign Entity of Concern (FEoC) regulations, Posco aims to solidify its competitive edge in the global market.

While the exact location of the plant is still under deliberation, South Korea is one of the countries under consideration. This expansion further emphasizes Posco and Hancock Prospecting’s commitment to meeting the increasing demand for lithium, driven by the growing electric vehicle and renewable energy sectors.

Strengthening Global Lithium Footprint

Both Posco and Hancock have strong footholds in the lithium industry. Hancock owns a 19.9% stake in Liontown Resources, a prominent Australian lithium developer. Meanwhile, Posco has extended its reach through joint ventures with Pilbara Minerals in Australia and investments in the Sal de Oro brine project in Argentina. These global partnerships underscore their dedication to securing a stable and sustainable lithium supply, pivotal for future technologies.