MinRes soars on $765M lithium JV with Posco Holdings

MinRes (ASX: MIN) shares shot to a new yearly high after it announced a partnership with Posco Holdings that will give the South Korean industrial giant a 30% interest in a lithium joint venture for $765 million.

MinRes is to retain a 70% interest in the JV, which encompasses its producing Wodgina and Mt Marion mines in Western Australia. The deal values MinRes’ existing stakes in those mines at about $3.9 billion.

The agreement marks the first investment by a major Korean firm into Australian lithium, MinRes Chair Malcolm Bundey said in a release on Tuesday.

“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,” Bundey 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.”

Manufacturer supply deals

Despite lithium prices remaining in a two-year slump, the MinRes-Posco JV is part of a wider trend over the last few years of downstream manufacturers seeking access to critical mineral supplies. Last December, Volkswagen signed a $69-million deal for a 9.9% stake in PMET Resources’ (TSX: PMET; ASX: PMT; US-OTC: PMETF) and 100,000 tonnes of spodumene concentrate from its Shaakichiuwaanaan lithium project in Quebec once it starts production.

In October last year, Lithium Americas (TSX: LAC; NYSE: LAC) inked a US$625-million JV agreement with General Motors for a 38% stake in its Thacker Pass project in northern Nevada.

MinRes shares rose 10% to close at A$51.23 apiece on Wednesday in Sydney, for a market capitalization of A$10.12 billion.

Debt repayment 

The JV deal is expected to close in the first half of 2026. MinRes plans to use the proceeds to repay external debt, boost its balance sheet and prepare the company for future growth, it said.

Posco’s receipt of spodumene would be commensurate with its 30% stake, though MinRes didn’t specify the exact amount.

Perth-based MinRes will continue as operator of its Western Australia mines. Its existing agreements with JV partners Albemarle (NYSE: ALB) at Wodgina and China’s Ganfeng Lithium at Mt Marion are separate from the new JV with Posco.

The miner also holds with Posco the Onslow Iron JV in Western Australia.