[Insight] POSCO Expands Lithium Sales Push to China Through Ronbay Partnership

POSCO Group is broadening its reach into the lithium market, venturing beyond its own resource acquisition and production to secure global customers. In a strategic move, POSCO signed a Framework Agreement with Ningbo Ronbay New Energy, a prominent Chinese cathode materials producer, on August 19. This partnership aims to collaborate across the secondary battery materials value chain, including lithium supply and recycling.

The agreement is significant as it connects POSCO's accumulated lithium assets with one of the largest battery materials markets in the world. Under the deal, the companies will cooperate on supplying lithium produced by POSCO Pilbara Lithium Solution from Australian hard-rock resources, brine-based lithium from POSCO Argentina, and recycled lithium from POSCO HY Clean Metal.

POSCO Pilbara Lithium Solution plans to complete Ronbay's qualification for its battery-grade lithium hydroxide by the fourth quarter, paving the way for potential commercial-scale supply. This move aligns with POSCO's broader lithium strategy, which spans multiple continents. In April, POSCO invested $765 million in interests linked to Australian lithium mines, securing 30% of the lithium concentrate.

POSCO is also developing its brine-based lithium business in Argentina and connecting its Korean lithium hydroxide production with major battery customers, such as SK On. The partnership with Ronbay in China could be a crucial milestone, as it would demonstrate POSCO's ability to meet the requirements of a major Chinese cathode producer, potentially opening doors to the largest battery materials manufacturing market.