PERTH, May 3, 2026, 23:03 AWST
Mineral Resources Ltd (ASX: MIN) has finalized investment and shareholders agreements with POSCO Holdings, confirming the sale of a 30% stake in their new lithium joint venture and shifting the US$765 million deal into the approvals stage. The JV, named LithCo, is set to house MinRes’ current 50% stakes in both the Wodgina and Mt Marion lithium mines. Managing Director Chris Ellison described the move as a “critical step.” POSCO Holdings President Ju-Tae Lee pointed to the partnership’s potential for the “stabilisation” of battery-materials supply.
This deal has immediate implications for MinRes, linking straight into its debt repair—not just future lithium ambitions. According to the company, it plans to redeem the outstanding US$750 million in 2028 senior unsecured notes, those bonds not secured by any particular assets, as soon as the POSCO money lands. After that move, MinRes is looking at a clear runway: no major debt maturities before May 2030, and roughly A$150 million shaved off its annual finance costs.
The deal comes on the heels of a robust March quarter for MinRes. The company raised its FY26 volume guidance across Mining Services, Onslow Iron, Wodgina, and Mt Marion. Net debt dropped to about A$4.5 billion from A$4.9 billion, while liquidity improved to A$1.8 billion. The realised price for SC6 spodumene concentrate—the lithium product MinRes sells—jumped 92% from the previous quarter to US$2,105 per dry metric tonne.
Chief Financial Officer Mark Wilson told analysts the company was moving to reduce leverage faster, pointing to better operations, commodity prices, and balance-sheet moves. “Balance sheet strength first,” Wilson said of the priorities, followed by “selective high-return brownfields growth.” He also noted the POSCO proceeds would go toward lowering the weighted average cost of debt even more.
Competition is fierce. Wodgina runs with Albemarle, Mt Marion with Jiangxi Ganfeng Lithium, and POSCO is already partnered with Pilbara Minerals on a lithium hydroxide facility in South Korea. Back in November, RBC Capital Markets analyst Kaan Peker called the deal a way to “lock in a premium valuation” and said it “strengthens the balance sheet.” Reuters
POSCO is in it for the supply. According to Yonhap, the company anticipates securing rights to 30% of lithium concentrate from both Wodgina and Mt Marion. Factoring in proposed capacity boosts, POSCO figures that total output would hit around 37,000 tonnes of lithium hydroxide—enough to power about 860,000 electric vehicles.
Still, the deal hasn’t crossed the finish line yet, and there’s a clear risk: delays in approvals or paperwork could push back when MinRes sees any cash—money it needs to chip away at debt. The company’s also staring down heavier costs after diesel prices shot up, doubling since March. That jump means Onslow Iron’s costs are set to rise by about A$4 per wet metric tonne, Pilbara Hub by A$7 per wet metric tonne, and, for Wodgina and Mt Marion in the June quarter, about A$60 more per dry metric tonne of SC6 on average. Even so, MinRes left its FY26 cost guidance unchanged.
MinRes shares caught a 4.69% lift to A$66.70, according to the latest Morningstar data. Analyst Mark Taylor bumped his fair value estimate up to A$77, but flagged that the market remains “gun-shy” following the lithium tumble and heavy debt load. Morningstar
Regulatory clearances are up next, along with the last set of offtake and marketing documents, plus the leverage update for the June quarter. For MinRes, locking in the POSCO deal means converting some lithium risk into much-needed balance-sheet breathing room; delays push that fix further out.
