South Korean steelmaker Posco has struck a US$280 million deal with Australia-based Galaxy Resources to secure lithium-mining rights in Argentina.
The agreement, set for completion by the fourth quarter of 2018, allows Posco to acquire a package of tenements on the northern portion of the Salar del Hombre Muerto, in the country’s northwest region (pictured).
The move will secure a stable lithium supply for Posco ES Materials— the group’s battery material manufacturing affiliate.
Galaxy, a global lithium company, said it will retain all of its interest in mining tenements in the southern portion of the area, and will continue to explore potential cooperation with Posco on future developments.
Galaxy chairman, Martin Rowley said: “This transaction is economically significant as it means there are well-advanced plans for two lithium projects to be developed concurrently on the Salar del Hombre Muerto spanning across both Catamarca and Salta Provinces, which carries obvious benefits for all stakeholders in both regions.”
Last January, Posco announced plans to build a US$100m lithium-ion cathode plant in Gwangyang, South Korea, with an expected annual production capacity of 600 tons.
BEST Battery Briefing reported last March that Posco was part of an international consortium cleared to develop battery materials facilities in Chile.
