According to industry sources on May 30, domestic companies involved in secondary battery materials and manufacturing are continuing to invest in minerals to secure future growth drivers, even as they face increased investment burdens due to poor market conditions.
POSCO Group is taking the most proactive approach. POSCO Holdings signed an investment agreement worth approximately $765 million with Mineral Resources, a local mining and services company in Perth, Australia, last month. This investment comes less than a month after the company secured a large-scale lithium brine resource in Argentina. Analysts view this as a preemptive investment considering the long-term growth potential, despite a slowdown in electric vehicle demand and falling lithium prices.
Korea Zinc is also increasing its presence in the competition for strategic minerals. The company, through its subsidiaries KEMCO and Korea Precious Metals Corporation (KPC), has established a supply chain from nickel sulfate to precursors and is pursuing a project called Crucible to build an integrated smelter in Tennessee, USA. Recently, it has been reported that the Australian government has proposed establishing an integrated smelting system that encompasses not only zinc but also lead and copper, based on its local subsidiary SMC.
The three major domestic battery manufacturers—LG Energy Solution, Samsung SDI, and SK On—are prioritizing the stabilization of their mineral supply chains. These companies are expanding long-term supply contracts for key raw materials such as lithium, nickel, and cobalt while enhancing their competitiveness in securing raw materials through equity investments in mines and joint ventures. Following the implementation of the U.S. Inflation Reduction Act (IRA), they are also accelerating the establishment of supply chains focused on allied countries like North America and Australia.
EcoPro, a materials specialist, is strengthening its supply chain competitiveness in the European market. After completing a cathode material factory in Debrecen, Hungary, last November, the company is set to begin mass production in the first half of this year. EcoPro is the first domestic battery materials company to establish a local production base in Europe.
These strategic mineral investments by companies are closely tied to securing future growth opportunities. Demand for key minerals such as lithium, nickel, and copper is expected to steadily increase due to the expansion of new industries like AI data centers, power grids, and energy storage systems (ESS).
An industry insider noted, "Mineral projects typically take years from investment to production, making it difficult to approach them based solely on short-term market conditions. The mines and smelting capabilities secured now will directly impact future supply chain competitiveness, so companies are focusing more on long-term growth than short-term market conditions."
* This article has been translated by AI.
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