POSCO Holdings, Hancock join forces

POSCO Holdings and Hancock Prospecting have formalised their collaboration by signing a memorandum of understanding (MoU) on lithium cooperation.

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.

The signing ceremony was conducted via video conference between Korea and Australia, with attendance from POSCO Holdings rechargeable battery materials head Jun-hyung Kim and Hancock Prospecting chief executive Garry Korte, among other senior executives from both companies.

Mr Kim says 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,” he said.

Hancock Prospecting, headquartered in Perth, WA, specialises 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 68,000tpa, with the completion of facilities producing 25,000t of brine lithium in Argentina and 43,000t of ore lithium.