By Diplomacy Journal Lee Kap-soo

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 Hancock Prospecting formalized their collaboration by signing a business agreement on lithium cooperation on Dec. 9. 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.