POSCO signs US$765 mln deal for 30 pct stake in Australian lithium mine

POSCO-lithium mine

POSCO signs US$765 mln deal for 30 pct stake in Australian lithium mine

SEOUL, April 30 (Yonhap) -- POSCO Holdings, South Korea's leading steelmaker, said Thursday it has signed a 1.1 trillion-won (US$765 million) deal to acquire a 30 percent stake in an Australian lithium mine operator, as part of efforts to secure key materials for its secondary battery material business.

Under the agreement, POSCO will establish an incorporated joint venture with Mineral Resources and secure rights to 30 percent of lithium concentrate produced from two major mines -- Mount Marion and Wodgina in Western Australia.

The Wodgina mine is among the world's five largest, with about 6.2 million tons of lithium carbonate reserves, while the Mount Marion mine is estimated to hold around 2.2 million tons, according to POSCO.

The combined output, including planned capacity expansions, is equivalent to producing about 37,000 tons of lithium hydroxide -- enough to power approximately 860,000 electric vehicles.

POSCO said the partnership is expected to help ensure a stable supply of lithium, a key material used in secondary batteries for electric vehicles.

The Wodgina mine in Western Australia, owned and operated by Mineral Resources, is shown in this undated file photo provided by the company. (PHOTO NOT FOR SALE) (Yonhap)