Mineral Resources Ltd. (MinRes) has agreed to sell a stake in its lithium business to South Korea’s POSCO Holdings Inc. for US$765 million amid increasing demand for Australian lithium.
Under the terms of the agreement, POSCO will acquire MinRes’ 30 per cent interest in its operational lithium for a total cash consideration of US$765 million. The deal will create an incorporated joint venture that will hold MinRes’ existing 50 per cent ownership in the Wodgina and Mt Marion lithium mines.
MinRes will retain a 70 per cent interest in the new entity and miner will continue as operator for both mines.
MinRes Managing Director Chris Ellison said: “This transaction will materially strengthen MinRes’ balance sheet, giving us the financial flexibility to pursue strategic growth opportunities across our portfolio that leverage our unique development and operational capability, and further enhance shareholder value.”
POSCO will also receive spodumene concentrate proportional to its stake, supporting its downstream processing plans. MinRes and POSCO will work together to strengthen Wodgina and Mt Marion’s position to respond to increasing demand for Australian lithium.
MinRes Chair Malcolm Bundey said: “This first-of-its-kind investment by a major Korean company into Australian lithium is a milestone for our industry. 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.
“By supporting the development of new global conversion capacity, this partnership will play an important role in diversifying the global lithium supply chain and strengthen bilateral ties between Australia and Korea in critical minerals.”
POSCO CEO In Hwa Chang said the partnership will combine the South Korean company’s downstream expertise with MinRes’ mining capability.
“POSCO Group views the energy materials business as a core growth driver alongside our steel business, and we are committed to securing a stable, cost-competitive supply of raw materials to enhance our long-term competitiveness,” Chang said.
MinRes and POSCO’s boards have approved the deal and completion is subject to regulatory approvals. MinRes expects the transaction to complete in the first half of 2026.
MinRes expects to use the proceeds from the deal to repay external debt, fortify its balance sheet and position the company for future growth.
The joint venture reflects a pivotal shift in market leadership dynamics as China’s dominance in the lithium supply chain has been increasingly challenged.
China is forecast to overtake Australia as the world’s largest lithium miner by 2026 due to its aggressive production expansion despite recent global price declines.
Nonetheless, Australia remains home to world-class “Tier 1” lithium projects with significant expansion potential, and POSCO’s investment highlights strong international confidence in Australian lithium’s quality and growth prospects.
Australia’s lithium sector has seen fluctuations with some producers reducing output amid price pressures, yet the demand outlook remains robust given the electrification trend worldwide.
The Wodgina and Mount Marion operations are well-positioned assets featuring proven scale, access to leading export infrastructure, and sustainability credentials, providing a reliable supply of spodumene concentrate to global markets, including POSCO’s downstream processing facilities.