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Posco is ramping up investment in secondary battery materials despite a temporary market slowdown, or a chasm, as it looks to strengthen competitiveness in one of its core growth sectors and prepare for a future rebound.
On Friday, the company announced it had opened a key minerals research center, called the Australia Critical Minerals R&D Lab, in Perth, Western Australia, to conduct research aimed at securing technological competitiveness in raw materials for steelmaking and battery materials. This marks the first time a Korean company has established a resource-focused research institute in a region where such materials are sourced.
The opening ceremony was attended by Posco Holdings Chair Chang In-hwa and Kim Ki-soo, head of Posco Holdings research institute N.E.X.T Hub. Representatives from major Australian mining companies such as Hancock Prospecting and Rio Tinto, as well as institutions including the Commonwealth Scientific and Industrial Research Organisation and the Minerals Research Institute of Western Australia, were also present.
The new center will focus on research to reduce carbon emissions and lower raw material costs in steel and battery material production. It will also explore next-generation core minerals through research into rare earth supply chains and advanced refining technologies. Additionally, Posco aims to leverage its local network to identify potential investments in high-quality global mining assets.
Posco has worked closely with Australia on key mineral supply chains — including iron ore and lithium — since the early 1980s. It participates in the Roy Hill iron ore project to ensure stable procurement of steel materials, and operates a lithium hydroxide joint venture for battery materials with Australian firm Pilbara Minerals, or PLS.
“Since first receiving iron ore from Australia in 1971, Posco has built strong trust and cooperation with the Australian government and industry,” said Chairman Chang. “The new research center will combine Australia’s rich mineral resources with Posco’s materials expertise, becoming a strategic base for increasing the added value of our core businesses and securing essential mineral and processing technologies.”
Investment in battery materials remains a key focus. On May 13, Posco conducted a 1.6 trillion won ($1.16 billion) rights offering, with proceeds earmarked for expanding production capacity. Posco Future M plans to use the capital for its cathode material plants in Canada, as well as facility expansions in Pohang and Gwangyang.
Efforts to broaden its raw material supply chain are also ongoing. The company has increased investment in lithium brine projects in Argentina, lithium mines in Australia, and graphite mines in Africa. Posco said it plans to actively identify additional supply sources to secure high-quality resources in advance.
“We aim to turn the electric vehicle chasm into an opportunity to boost competitiveness,” a Posco official said. “Our goal is to bring newly built plants at home and abroad to full operation early, expand customer product certifications and secure a stable profit base.” The official added that the company will “concentrate its resources on acquiring more premium assets, such as lithium brine projects in the Americas and lithium mines in Australia.”
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK YOUNG-WOO [shin.minhee@joongang.co.kr]
Posco Marks Opening Of Australia Critical Minerals R&d Lab
Posco Holdings Chair Chang In-hwa, fifth from right, poses with officials from local research centers and mining companies during the opening ceremony of the Korean steelmaker's key minerals research center in Perth, Western Australia, on May 30. [POSCO]
Posco is ramping up investment in secondary battery materials despite a temporary market slowdown, or a chasm, as it looks to strengthen competitiveness in one of its core growth sectors and prepare for a future rebound.
On Friday, the company announced it had opened a key minerals research center, called the Australia Critical Minerals R&D Lab, in Perth, Western Australia, to conduct research aimed at securing technological competitiveness in raw materials for steelmaking and battery materials. This marks the first time a Korean company has established a resource-focused research institute in a region where such materials are sourced.
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The opening ceremony was attended by Posco Holdings Chair Chang In-hwa and Kim Ki-soo, head of Posco Holdings research institute N.E.X.T Hub. Representatives from major Australian mining companies such as Hancock Prospecting and Rio Tinto, as well as institutions including the Commonwealth Scientific and Industrial Research Organisation and the Minerals Research Institute of Western Australia, were also present.
The new center will focus on research to reduce carbon emissions and lower raw material costs in steel and battery material production. It will also explore next-generation core minerals through research into rare earth supply chains and advanced refining technologies. Additionally, Posco aims to leverage its local network to identify potential investments in high-quality global mining assets.
Posco has worked closely with Australia on key mineral supply chains — including iron ore and lithium — since the early 1980s. It participates in the Roy Hill iron ore project to ensure stable procurement of steel materials, and operates a lithium hydroxide joint venture for battery materials with Australian firm Pilbara Minerals, or PLS.
“Since first receiving iron ore from Australia in 1971, Posco has built strong trust and cooperation with the Australian government and industry,” said Chairman Chang. “The new research center will combine Australia’s rich mineral resources with Posco’s materials expertise, becoming a strategic base for increasing the added value of our core businesses and securing essential mineral and processing technologies.”
Investment in battery materials remains a key focus. On May 13, Posco conducted a 1.6 trillion won ($1.16 billion) rights offering, with proceeds earmarked for expanding production capacity. Posco Future M plans to use the capital for its cathode material plants in Canada, as well as facility expansions in Pohang and Gwangyang.
Efforts to broaden its raw material supply chain are also ongoing. The company has increased investment in lithium brine projects in Argentina, lithium mines in Australia, and graphite mines in Africa. Posco said it plans to actively identify additional supply sources to secure high-quality resources in advance.
“We aim to turn the electric vehicle chasm into an opportunity to boost competitiveness,” a Posco official said. “Our goal is to bring newly built plants at home and abroad to full operation early, expand customer product certifications and secure a stable profit base.” The official added that the company will “concentrate its resources on acquiring more premium assets, such as lithium brine projects in the Americas and lithium mines in Australia.”
Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY PARK YOUNG-WOO [shin.minhee@joongang.co.kr]
