South Korea's Posco Holdings has agreed to acquire a 30% stake in the lithium business of Australian mining company Mineral Resources Limited (MinRes), gaining partial ownership of two mines in Western Australia to secure critical metals for electric vehicle batteries. The deal, valued at A$1.2 billion (approximately $765 million), will establish a joint venture between Posco and MinRes.

In a statement on Wednesday, MinRes confirmed that Posco will receive lithium concentrate from the two mines in proportion to its stake. The proceeds from the sale will be used to repay MinRes' debt, which has surged to A$5.4 billion—more than half of its market capitalization.

MinRes Chairman Malcolm Bundey remarked, "This first investment by a major Korean company in Australian lithium marks a significant milestone for our industry. It underscores the growing global demand for premium hard-rock lithium resources and reflects international confidence in Australia's ability to meet this demand."

Currently, MinRes co-owns half of the Mt. Marion and Wodgina mines with Jiangxi Ganfeng Lithium and Albemarle. The company will remain the operator of these assets.

Recent industry reports and lithium market data indicate that the global lithium sector, previously weighed down by oversupply concerns since 2022, is now rebounding strongly. Unprecedented demand for large-scale battery storage, fueled by the AI boom, is reversing the long-term bearish pricing trend that once disrupted lithium metal trading and related stock prices.

Spot prices for lithium carbonate have climbed to their highest level since late August, though they remain over 85% below the 2022 peak. However, dwindling inventories, mine closures, and project delays are tightening the market.

In equity markets, lithium-related stocks have surged amid robust demand for energy storage and China's "anti-involution" policy stance. Sociedad Quimica Y Minera De Chile SA (SQM), which owns one of the world's largest lithium reserves, has seen its shares jump more than 20% since October. Several lithium stocks in China's A-share market have also hit consecutive daily price limits.

"We believe the recent lithium price rally is primarily driven by strong demand rather than potential supply disruptions," Citigroup analysts noted in a November 9 report. "Over time, we are increasingly confident in the outlook for robust battery storage demand in the coming years."