Mineral Resources (ASX:MIN) has executed a formal investment agreement and shareholders’ agreement with POSCO Holdings (NYSE:PKX) for the acquisition of 30% of Mineral Resources’ operational lithium business.
The agreement will create a new incorporated joint venture, named LithCo. LithCo will hold Mineral Resources’ existing 50% ownership of the Wodgina and Mt Marion lithium mines.
The transaction is expected to be completed in the first half of FY2027.
The completion of this agreement is subject to the execution of further long-form agreements, offtake agreements, and marketing documentation.
Mineral Resources Managing Director Chris Ellison says the execution of these key transaction documents is a “critical step in progressing this transaction”.
“We look forward to working with POSCO Holdings to finalise all outstanding matters and bring this to completion as soon as possible,” Ellison says.
“This partnership continues to represent a landmark investment by a major Korean company into Australian lithium, and we remain committed to ensuring that Wodgina and Mt Marion reach their full potential as two of the world’s best hard rock lithium assets.”
POSCO Holdings President Ju-Tae Lee says the company will continue to strengthen its “long-term partnership in the global lithium market”.
“This partnership is highly meaningful in that it combines Mineral Resources’ mining and operational capabilities with POSCO Holdings’ downstream processing expertise, contributing to the stabilisation of the global battery materials supply chain,” Lee says.
Mineral Resources is a leading diversified resources company with extensive operations in lithium, iron ore, energy, and mining services across Western Australia.
POSCO Holdings is focused on building a “new tomorrow” as a provider of eco-friendly future materials.
Write to Maddison Elliott at Mining.com.au
Images: Mineral Resources
