POSCO Inter inks $40 mn deal with Australian mining firm

POSCO International signed a $40 million investment deal with Black Rock Mining. Officials are pictured at the signing ceremony. [Courtesy of POSCO International]

POSCO Group is intensifying its global investments to secure graphite, a crucial material for electric vehicle (EV) battery production. Despite concerns about the ongoing slowdown in electric vehicle demand, the company is opting to secure the key material rather than scaling back its investments.

In a statement published on Tuesday, POSCO International Corp, a trade company affiliated with the conglomerate, announced that it signed a 53.7 billion won ($40 million) investment agreement with Australian mining company Black Rock Mining Ltd at Crown Towers Perth in Australia. POSCO Group will acquire a 19.9 percent stake in Black Rock Mining via the agreement.

Black Rock Mining owns the Mahenge mine in Tanzania, Africa, the world‘s second-largest graphite mine by reserves with approximately 6 million tons of graphite.

The latest deal is the second collaboration between the two companies. POSCO International invested $10 million in Black Rock Mining in 2023 during the first phase of their partnership. With this second-phase investment, POSCO International will secure 1.5 million tons of natural graphite over 25 years starting in 2028, which is equivalent to a quarter of the Mahenge mine’s total graphite reserves. The supply deal will enable POSCO International to produce enough batteries to power 1.26 million electric cars annually.