MinRes sheds its stake in lithium business

Mineral Resources (ASX: MIN) will sell a 30% stake in its operational lithium business to POSCO Holdings for $1.2b (US$765m).

The sale comes as lithium begins to recover, with prices nearly doubling since June and rallying to US$1012/t on Tuesday.

MinRes plans to use the proceeds from the sale to pay down eternal debt.

This sale forms a new incorporated joint venture which will hold MinRes’ existing 50% ownership of the Wodgina and Mt Marion lithium mines in WA and with MinRes retaining a 70% interest in the new entity.

MinRes will continue as operator of both mines under existing agreements with its joint venture partners – Albemarle Corporation at Wodgina and Jiangxi Ganfeng Lithium at Mt Marion.

POSCO Holdings will receive spodumene concentrate in proportion to its 30% interest, underpinning its future investment in new downstream processing facilities.

MinRes chair Malcolm Bundey says this is a first-of-its-kind investment by a major Korean company into Australian lithium, marking a milestone for the industry.

“It signals the growing global demand for Tier 1 hard rock lithium assets and the confidence international partners have in Australia’s ability to meet that demand,” he said.

“By supporting the development of new global conversion capacity, this partnership will play an important role in diversifying the global lithium supply chain and strengthen bilateral ties between Australia and Korea in critical minerals.”

MinRes managing director Chris Ellison says the investment is a testament to the long-term value of Wodgina and Mt Marion as well as MinRes’ reputation as a mining operator.

“This transaction will materially strengthen MinRes’ balance sheet, giving us the financial flexibility to pursue strategic growth opportunities across our portfolio that leverage our unique development and operational capability, and further enhance shareholder value,” he said.

POSCO Holdings chief executive Hwa Chang comments on the transaction.

“POSCO Group views the energy materials business as a core growth driver alongside our steel business and we are committed to securing a stable, cost-competitive supply of raw materials to enhance our long-term competitiveness,” he said.

MinRes expects the transaction to complete in H1 CY26.