Mineral Resources (ASX:MIN,OTCQB:MALRF) and Korean steel producer POSCO Holdings (NYSE:PKX,KRX:005490) have executed a binding agreement, creating a lithium joint venture.
According to the release, the new entity will hold 50 percent of Mineral Resources’ existing ownership in the Wodgina and Mt Marion lithium mines in Western Australia.
POSCO will make a cash payment of US$765 million to acquire a 30 percent stake in the JV. The remaining 70 percent will be held by MinRes.
The focus of the JV is to strengthen Wodgina and Mt Marion’s capacity to take part in the increasing demand for Australian lithium, given their Tier 1 status and significant expansion potential.
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,” said MinRes Chair Malcolm Bundey.
Wodgina is located approximately 120 kilometres south of Port Hedland in Pilbara.
Its three processing trains at the site have a total annual production capacity of approximately 820,000 tonnes of spodumene concentrate at a grade of 5.5 percent lithium oxide.
Mt Marion is jointly owned by MinRes and one of the world’s largest lithium hydroxide producers, Jiangxi Ganfeng Lithium, where both parties hold 50 percent equally.
Located 40 kilometres southwest of Kalgoorlie in the Goldfields region, Mt Marion’s mining activities include a spodumene concentrate processing plant with an annual production capacity of 600,000 tonnes (SC6 equivalent).
“(Both mines) are high‑quality assets with proven scale, capable of sustaining our business for decades to come,” commented POSCO CEO Hwa Chang.
“We will combine POSCO’s downstream expertise with MinRes’ mining capability to drive the sustainable growth of the energy materials industry and contribute to the global transition toward eco-friendly mobility.”
The companies hold an existing partnership with the Onslow Iron joint venture, with Onslow Iron having successfully ramped up to nameplate capacity.
Onslow Iron also commenced production at a new hub towards the end of October.
Subject to regulatory approvals, completion of MinRes and POSCO’s transaction is expected in the first half of 2026.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
