Australia Lithium Deal Tightens Global Battery Links

Mineral Resources sells 30% to POSCO for US$765m, signaling that joint ventures are becoming the go-to way to lock in lithium supply

20 Jan 2026

Australia’s lithium industry has delivered a clear signal to global markets. The scramble for battery materials is speeding up, and long-term partnerships are replacing arms-length deals.

Mineral Resources has agreed to sell a 30% stake in its operating lithium business to South Korea’s POSCO Holdings for about US$765 million. The deal sits inside a new joint venture covering the Wodgina and Mt Marion projects in Western Australia, with Mineral Resources keeping operational control.

On the surface, it looks like a sizeable capital raising. Look closer and it reveals how the battery supply chain is being rewired. Access to lithium is increasingly secured through ownership and alignment, not spot purchases or short-term contracts.

For POSCO, the logic is straightforward. Electric vehicles and energy storage have made lithium supply more strategic and more uncertain. Prices swing, trade policy shifts, and demand forecasts rarely sit still. An equity stake offers insulation from shortages and locks the company into one of the world’s most reliable lithium regions.

For Mineral Resources, the upside is immediate. The transaction strengthens the balance sheet, injects cash, and preserves majority control of prized assets. It also affirms the long-term value of Australian lithium at a time when mining capital is harder to attract and scrutiny on spending is rising.

Beyond the companies involved, the deal highlights a broader shift. More lithium is being tied up in joint ventures and strategic alliances, shrinking the pool available to independent buyers. Processors and refiners without direct mine exposure may find competition intensifying as supply becomes increasingly spoken for.

Joint ventures bring compromises, from shared governance to regulatory oversight. Even so, the direction of travel is hard to miss. The industry is moving away from transactional selling toward deeper, cross-border collaboration.

As electric vehicle adoption continues to build, this Australia-based partnership looks less like an exception and more like a blueprint. Expect more tie-ups, tighter supply chains, and a faster push to secure the materials the energy transition depends on.