Highlights

  • POSCO Holdings to acquire a 30% stake in MinRes’ operational lithium business for approximately AUD 1.2 billion.
  • The transaction values MinRes’ 50% ownership of Wodgina and Mt Marion lithium mines at around AUD 3.9 billion.
  • Completion of the deal is expected in the first half of 2026, subject to regulatory approvals.

Shares of Mineral Resources Limited (ASX:MIN) traded 8.93% higher at AUD 51.11 following the announcement of a binding agreement with POSCO Holdings Inc. on key terms for a new lithium joint venture. The agreement outlines POSCO Holdings’ acquisition of a 30% interest in MinRes’ operational lithium business, under a newly formed incorporated joint venture.

Structure of the Transaction

Under the agreed terms, POSCO Holdings will purchase its stake for a total upfront cash consideration of USD 765 million (approximately AUD 1.2 billion). This consideration places an implied valuation of AUD 3.9 billion on MinRes’ existing 50% ownership of the Wodgina and Mt Marion lithium mines.

Following completion, MinRes will hold a 70% interest in the new joint venture entity, equivalent to 35% of each mine at an underlying level. POSCO Holdings’ indirect ownership will represent 15% of each operation.

MinRes will remain the operator of both lithium mines under its existing agreements with partners Albemarle Corporation (Wodgina) and Jiangxi Ganfeng Lithium (Mt Marion). The operational entities will remain outside the new joint venture structure and unaffected by the transaction.

Strategic Benefits and Supply Partnership

As part of the investment, POSCO Holdings will receive spodumene concentrate proportional to its 30% interest. This supply arrangement supports POSCO Holdings’ expansion into downstream lithium processing, particularly in Korean and Western markets.

The collaboration marks another step in MinRes’ strategy of partnering with major global players to unlock capital and advance growth opportunities. The partnership is also expected to enhance the Wodgina and Mt Marion projects’ ability to meet rising global demand for Australian lithium.

Building on Existing Ties

The agreement extends the established relationship between MinRes and POSCO Holdings, which began through their Onslow Iron joint venture. Onslow Iron has already achieved nameplate capacity, underscoring MinRes’ track record in project delivery and operational performance.

Both company boards have approved the transaction. Completion is subject to final documentation and standard regulatory conditions, including review by the Foreign Investment Review Board (FIRB) and any necessary merger clearances.

Next Steps and Financial Outlook

MinRes anticipates the transaction will be completed in the first half of 2026. The proceeds from the deal are expected to be used to repay external debt and support the company’s next phase of growth.