Mineral Resources (MinRes) has executed a binding agreement with South Korean steel manufacturer POSCO Holdings to form a new lithium partnership. POSCO will acquire a 30 per cent stake in a new joint venture that holds MinRes’ existing 50 per cent ownership in the Wodgina and Mt Marion lithium mines.
POSCO will pay an upfront cash consideration of $US765 million (approximately $1.2 billion) for its interest. This transaction values MinRes’ existing 50 per cent share of the two mines at approximately $3.9 billion. MinRes will retain a 70 per cent interest in the new entity.
“This first-of-its-kind investment by a major Korean company into Australian lithium is a milestone for our industry,” MinRes chair Malcolm Bundey said. “It signals the growing global demand for Tier 1 hard rock lithium assets and the confidence international partners have in Australia’s ability to meet that demand.”
Operationally, MinRes will continue as the operator of both mines under its existing agreements with partners Albemarle and Jiangxi Ganfeng Lithium. MinRes’ operating entities remain separate from this deal.
As part of the investment, POSCO will receive spodumene concentrate proportional to its 30 per cent interest, which will support its future downstream processing facilities.
For MinRes, the partnership recycles capital and builds on the existing relationship established through the Onslow Iron joint venture with POSCO. MinRes will utilise the proceeds to repay external debt, strengthen its balance sheet, and position the company for its next phase of growth.
The agreement has been approved by both boards but remains subject to customary conditions, including regulatory approvals from the Foreign Investment Review Board (FIRB). MinRes expects the transaction to be completed in the first half of 2026.
