What's Happening?
Mineral Resources has agreed to sell a 30% stake in its lithium business to South Korea's POSCO Holdings for $765 million. The new joint venture will hold Mineral Resources' 50% ownership in the Wodgina
and Mt Marion lithium mines, giving POSCO an indirect 15% interest in each project. POSCO will receive spodumene concentrate proportional to its stake, supporting its downstream processing plans. The deal is subject to regulatory clearances, including approval from Australia's Foreign Investment Review Board.
Why It's Important?
The sale of the lithium stake to POSCO reflects the growing demand for lithium, a key component in battery production for electric vehicles and renewable energy storage. This partnership enhances POSCO's access to lithium resources, supporting its expansion in the battery market. For Mineral Resources, the deal provides significant capital, potentially fueling further investment in its mining operations. The transaction underscores the strategic importance of lithium in the global energy transition and the need for secure supply chains.
What's Next?
The deal awaits regulatory approval, including clearance from Australia's Foreign Investment Review Board. Once finalized, POSCO plans to develop new downstream processing facilities, enhancing its lithium production capabilities. Mineral Resources will continue operating the mines under existing agreements, focusing on meeting rising demand for Australian lithium. The partnership may lead to further collaborations and investments in the lithium sector, influencing market dynamics and policy decisions.
