Posco Holdings said Sunday it has signed a stake investment deal in Australian lithium mines as it moves to strengthen its raw material supply chain for battery materials.

The company said it had recently agreed to invest about $765 million in a lithium mining project with Mineral Resources, an Australian mining and mining services firm.

The deal follows Posco Holdings’ announcement in November of its plan to invest in Australian lithium assets. Under the agreement, the two companies will establish an intermediate holding company, in which Posco will have a 30 percent stake.

Through the joint venture, Posco will be entitled to receive 30 percent of the lithium concentrate produced from the Wodgina and Mount Marion mines in Western Australia.

Wodgina ranks among the world’s five largest lithium mines, with high-grade concentrate of around 5.5 percent and reserves equivalent to about 6.2 million tons of lithium carbonate. Mount Marion holds reserves of around 2.2 million tons.

Posco Holdings said the investment will not only provide stable dividend income but also reinforce its lithium value chain, spanning upstream mining to downstream material production.

“This partnership combines Mineral Resources’ mining expertise with Posco Holdings’ processing technology, contributing to the stabilization of the global battery materials supply chain,” said Lee Joo-tae, president of Posco Holdings. “We will strengthen our long-term partnership in the global lithium market based on mutual trust.”

Chris Ellison, CEO of Mineral Resources, said the deal marks a milestone investment by a major Korean company in Australia’s lithium sector.

“We will fully leverage the potential of Wodgina and Mount Marion as world-class hard-rock lithium assets,” he said.

By Byun Hye-jin (hyejin2@heraldcorp.com)