Mineral Resources (MinRes) and POSCO Holdings have signed an agreement to form a new joint venture focused on lithium production in Australia. The alliance will allow the Korean firm to acquire a 30% stake in MinRes’ lithium operating assets, including an indirect position in the well-known Wodgina and Mt Marion mines .
A strategic agreement for lithium exploitation and production
POSCO Holdings will pay US$765 million for a one-third stake in the new entity, equivalent to an indirect 15% interest in each field. This investment brings the combined valuation of the assets to around US$3.9 billion.
MinRes will hold the remaining 70% and continue to operate both mines under the current agreements, in collaboration with Albemarle Corporation at Wodgina and Jiangxi Ganfeng Lithium at Mt Marion.
As part of the agreement, POSCO will receive spodumene concentrate in proportion to its shareholding. This resource will be essential to feed future lithium processing facilities, aligning with the Korean group’s strategy to expand its presence in the battery materials sector.
Both companies maintain ties through the Onslow Iron project, establishing mutual trust. This history of cooperation was a decisive factor in advancing a partnership that seeks to respond to the growing demand for hard rock lithium, driven by the global transition to electric mobility.
With the closing of the deal scheduled for the first half of 2026, MinRes plans to use the funds received to reduce external debt and consolidate its financial position. The transaction is seen as a major step forward in its strategy of capital recycling and sustainable growth.
It also represents the first investment by a Korean company in Australian lithium sources, strengthening bilateral ties between the two countries on strategic minerals. Australian authorities have endorsed the pact, highlighting its role in diversifying the global supply chain and boosting new industrial developments.
With this move, POSCO consolidates its commitment to the energy materials business, while MinRes reaffirms its leadership as a world-class asset operator. Both companies aim to maximize the potential of Wodgina and Mt Marion, positioning them as benchmarks in the competitive global lithium market.
Source and photo: Minerals Resources
