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POSCO to Invest $1.2 Billion for 30% of MinRes Lithium JV

The deal is cast as a step toward diversifying Australian lithium supply chains away from China.

Overview

  • A newly incorporated joint venture will hold Mineral Resources’ existing 50% stakes in the Wodgina and Mount Marion mines, valuing that interest at A$3.9 billion.
  • POSCO’s purchase gives it an indirect 15% interest in each project, with offtake of spodumene concentrate proportional to its 30% JV stake.
  • Mineral Resources will continue to operate the mines under current arrangements, with Albemarle partnered at Wodgina and Ganfeng Lithium at Mount Marion.
  • Mineral Resources said it intends to use the proceeds to reduce debt and strengthen its balance sheet, and its shares jumped as much as 10.8% after the announcement.
  • Reporting presents the transaction as a meaningful shift in regional lithium supply routes traditionally dominated by Chinese players.