Posco buys Hombre Muerto North lithium project for $62mn

Posco Lithium Project

Posco buys Hombre Muerto North lithium project for $62mn to expand its Argentine footprint. The move strengthens Posco’s brine-based LCE pipeline. As a result, Posco buys Hombre Muerto North lithium project at a strategic time.

Deal terms and project scale

Posco buys Hombre Muerto North lithium project from Lithium South under a non-binding pact. Posco Argentina agreed to acquire 100pc of the project for $62mn. The package includes five concessions and the lithium-rich brine resource. The agreement requires a 60-day due diligence period. Afterwards, both parties have 60 days to finalize a definitive deal. The project holds about 1.58mn t of brine-based LCE capacity. Forecast nameplate output stands at 15,600 t/yr.

Strategic fit in Hombre Muerto

Posco buys Hombre Muerto North lithium project near its existing Mariana asset. Posco Argentina operates the country’s only active lithium hydroxide facility. Therefore, integration could streamline brine processing and product conversion. Hombre Muerto is Argentina’s most coveted lithium basin. Rio Tinto’s Fenix project has produced lithium carbonate since the 1990s. Meanwhile, Posco’s local platform supports supply to battery value chains.

Steady drivers support the acquisition rationale. The basin offers proven brine chemistry and established logistics. The deal size suggests disciplined capital entry. However, completion depends on due diligence and final documentation. Lithium South disclosed the headline terms and timeline. Market participants will watch offtake and financing details.

The Metalnomist Commentary

This move consolidates Posco’s position in Argentina’s lithium triangle. The proximity to Mariana could reduce development risk and operating costs. Watch execution milestones and brine performance against the 15,600 t/yr target.