We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
POSCO Expands Lithium Supply Chain With Australia-Argentina Deals
Read MoreHide Full Article
Key Takeaways
POSCO Holdings is investing KRW 1.1T to secure premium lithium resources in Australia and Argentina.
The firm will obtain a stable lithium concentrate supply from major Australian mines via its new stake deal.
POSCO Holdings also bought Lithium South's Argentine unit to expand its brine-based lithium portfolio.
POSCO Holdings, Inc. (PKX - Free Report) recently announced a total investment of KRW 1.1 trillion to secure premium lithium resources in Australia and Argentina, strengthening its raw-material supply base for the fast-growing secondary battery materials sector. This move aligns with POSCO Group’s broader battery-materials strategy, which focuses on rapidly securing high-grade global lithium assets to improve cost efficiency and ensure a reliable supply chain for future production.
On Nov. 11, the company approved a plan to acquire a 30% stake in a newly formed intermediate holding company under Mineral Resources, a major Australian mining firm. The transaction is valued at approximately $765 million, or around KRW 1 trillion.
POSCO Expands Lithium Supply and Mining Ventures
POSCO Holdings will gain stable annual access to 270,000 tons of lithium concentrate from Mineral Resources’ leading assets, the Wodgina and Mt. Marion mines in Western Australia. This volume, reflecting planned production expansion at both sites, can be converted into roughly 37,000 tons of lithium hydroxide, sufficient to support the production of batteries for around 860,000 electric vehicles.
The equity investment not only secures long-term supply but also grants POSCO Holdings involvement in mine operations and future dividend income. The company also plans to scale its participation in lithium concentrate refining as the market matures and enters a phase of sustained growth.
POSCO Holdings is accelerating the buildup of its brine-based lithium portfolio. On Nov. 5, it committed $65 million (approximately KRW 95 billion) to acquire all shares of Lithium South’s Argentine subsidiary. This acquisition provides additional mining rights within the Hombre Muerto salt lake—one of the world’s highest-grade brine lithium regions.
The company emphasized that securing strong raw-material competitiveness is crucial for POSCO’s goal of becoming the global leader in lithium, adding that the group will continue to broaden and diversify its international lithium supply chain. The leadership at Mineral Resources also expressed support for the expanded partnership, noting that the collaboration, which began with the Onslow iron ore project, has now successfully grown into the lithium sector.
Shares of PKX are up 24% year to date compared with the industry’s 33.3% rise.
The Zacks Consensus Estimate for CMC’s fiscal 2026 earnings is pegged at $5.31 per share, indicating a 70% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average negative earnings surprise of 6.3%.
The Zacks Consensus Estimate for CDE’s current-year earnings is pegged at 91 cents per share, indicating a 406% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average surprise of 107%.
The Zacks Consensus Estimate for FSM’s current-year earnings is pegged at 83 cents per share, indicating an 80.4% year-over-year increase. The Consensus Estimates have been trending higher over the past 60 days.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
POSCO Expands Lithium Supply Chain With Australia-Argentina Deals
Key Takeaways
POSCO Holdings, Inc. (PKX - Free Report) recently announced a total investment of KRW 1.1 trillion to secure premium lithium resources in Australia and Argentina, strengthening its raw-material supply base for the fast-growing secondary battery materials sector. This move aligns with POSCO Group’s broader battery-materials strategy, which focuses on rapidly securing high-grade global lithium assets to improve cost efficiency and ensure a reliable supply chain for future production.
On Nov. 11, the company approved a plan to acquire a 30% stake in a newly formed intermediate holding company under Mineral Resources, a major Australian mining firm. The transaction is valued at approximately $765 million, or around KRW 1 trillion.
POSCO Expands Lithium Supply and Mining Ventures
POSCO Holdings will gain stable annual access to 270,000 tons of lithium concentrate from Mineral Resources’ leading assets, the Wodgina and Mt. Marion mines in Western Australia. This volume, reflecting planned production expansion at both sites, can be converted into roughly 37,000 tons of lithium hydroxide, sufficient to support the production of batteries for around 860,000 electric vehicles.
The equity investment not only secures long-term supply but also grants POSCO Holdings involvement in mine operations and future dividend income. The company also plans to scale its participation in lithium concentrate refining as the market matures and enters a phase of sustained growth.
POSCO Holdings is accelerating the buildup of its brine-based lithium portfolio. On Nov. 5, it committed $65 million (approximately KRW 95 billion) to acquire all shares of Lithium South’s Argentine subsidiary. This acquisition provides additional mining rights within the Hombre Muerto salt lake—one of the world’s highest-grade brine lithium regions.
The company emphasized that securing strong raw-material competitiveness is crucial for POSCO’s goal of becoming the global leader in lithium, adding that the group will continue to broaden and diversify its international lithium supply chain. The leadership at Mineral Resources also expressed support for the expanded partnership, noting that the collaboration, which began with the Onslow iron ore project, has now successfully grown into the lithium sector.
Shares of PKX are up 24% year to date compared with the industry’s 33.3% rise.
PKX’s Zacks Rank & Key Picks
PKX currently carries a Zacks Rank of #4 (Sell).
Some better-ranked stocks in the Basic Materials space are Commercial Metals Company (CMC - Free Report) , Coeur Mining, Inc. (CDE - Free Report) and Fortuna Mining Corp. (FSM - Free Report) . CMC sports a Zacks Rank of #1 (Strong Buy) while CDE and FSM carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CMC’s fiscal 2026 earnings is pegged at $5.31 per share, indicating a 70% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average negative earnings surprise of 6.3%.
The Zacks Consensus Estimate for CDE’s current-year earnings is pegged at 91 cents per share, indicating a 406% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in two of the trailing four quarters and missed twice, with an average surprise of 107%.
The Zacks Consensus Estimate for FSM’s current-year earnings is pegged at 83 cents per share, indicating an 80.4% year-over-year increase. The Consensus Estimates have been trending higher over the past 60 days.