signed a Business Agreement on Lithium Cooperation on December 9... Joint Venture for Lithium Production for Rechargeable Battery Materials
Planning to Establish a Lithium Production Plant with an Annual Capacity of 30,000 Tons... Evaluating Optimal Plant Sites Including Korea
Diversifying Lithium Sources Following Argentina's Brine Lithium and Australia's Pilbara Minerals' Ore Lithium
POSCO Holdings has joined forces with Hancock Prospecting, an Australian mining company, to strengthen the supply chain for lithium used in Rechargeable battery materials.
▲POSCO Holdings and Australian mining company Hancock Prospecting signed a business agreement on lithium cooperation via a video conference connecting Korea and Australia. From left: POSCO Holdings' Jun-hyung Kim, Head of Rechargeable Battery Materials; Hancock's Daniel Wade, Business Development Manager; Hancock's CEO Garry Korte; and POSCO Holdings' Lee Seong-won, Head of Lithium Business Team.
On December 9, POSCO Holdings and Hancock Prospecting formalized their collaboration by signing a business agreement on lithium cooperation. The signing ceremony was conducted via video conference between Korea and Australia, with attendance from POSCO Holdings' Jun-hyung Kim, Head of Rechargeable Battery Materials (Senior Executive Vice President), and Garry Korte, CEO of Hancock Prospecting, among other senior executives from both companies.
Under the agreement, POSCO Holdings and Hancock Prospecting will pursue a lithium business venture with an annual production capacity of 30,000 tons. The two companies will jointly evaluate optimal sites for establishing the lithium production plant, considering multiple countries, including Korea. Subsequent stages will specify detailed aspects such as investment amounts.
Through this collaboration, POSCO Holdings aims to secure an additional stable supply chain for lithium raw materials, free from regulations imposed by the Foreign Executive Order Committee (FEOC) of the United States, by leveraging Hancock's diverse mining assets. Additionally, POSCO Holdings will enhance its lithium value chain—from lithium mining and brine extraction to lithium hydroxide production, cathode materials, and recycling—strengthening the group's overall lithium infrastructure.
Jun-hyung Kim, Head of Rechargeable Battery Materials, stated, "POSCO Holdings has built a long-standing partnership with Hancock Prospecting based on mutual trust. In this lithium business collaboration, we will explore the optimal business framework and achieve successful outcomes."
Hancock Prospecting, headquartered in Perth, Western Australia, specializes in mining and primarily generates revenue from iron ore operations. The company is diversifying its business into lithium, natural gas, and rare earth elements. Since 2010, POSCO Group has expanded its collaboration with Hancock Prospecting, starting with a 12.5% investment in Hancock's Roy Hill iron ore mine. In 2022, POSCO International and Hancock jointly acquired Senex Energy, an Australian natural gas company, further broadening the scope of their partnership across the POSCO Group.
POSCO Holdings is leveraging the opportunity presented by the Rechargeable battery market's stagnant growth to secure premium lithium resources from mines and brine sources actively. This strategic move aims to expand the resource supply chain and enhance business capabilities to capture a leading position in the lithium market as conditions improve. As of 2024, POSCO Holdings has secured a lithium production capacity of 68,000 tons annually, with the completion of facilities producing 25,000 tons of brine lithium in Argentina and 43,000 tons of ore lithium.
