MinRes, POSCO sign binding deal for lithium partnership

Core Viewpoint - Mineral Resources (MinRes) and POSCO Holdings have entered into a binding agreement to establish a lithium joint venture, with POSCO acquiring a 30% stake in MinRes' operational lithium business, which includes ownership of the Wodgina and Mt Marion lithium mines [1][2]. Financial Details - POSCO Holdings will pay $765 million (Won1.12 trillion) for its 30% interest in the joint venture, which translates to an indirect 15% interest in both the Wodgina and Mt Marion mines. This transaction values MinRes' existing 50% interest in these mines at approximately $3.9 billion [2]. - MinRes will retain a 70% stake in the new entity, equating to a 35% underlying interest in each mine [2]. Operational Aspects - MinRes will continue to manage both mines under existing agreements with its joint venture partners, Albemarle at Wodgina and Jiangxi Ganfeng Lithium at Mt Marion. The operational entities of MinRes will remain separate from the new joint venture [3]. - As part of the investment, POSCO Holdings will receive spodumene concentrate proportional to its 30% interest [3]. Strategic Intent - POSCO Holdings aims to secure a stable and cost-competitive supply of raw materials to enhance long-term competitiveness, emphasizing the operational excellence and vision of MinRes [4]. - The partnership seeks to combine POSCO's downstream expertise with MinRes' mining capabilities to promote sustainable growth in the energy materials industry and support the transition to eco-friendly mobility [5]. Relationship and Future Plans - This collaboration builds on the existing relationship between MinRes and POSCO, previously established through the Onslow Iron joint venture [6]. - The binding agreement is subject to customary conditions, including regulatory approvals, with the transaction expected to close in the first half of 2026 [6]. - Following the transaction, MinRes plans to use the proceeds to repay external debt, strengthen its balance sheet, and support future growth [7].