POSCO Powers Up in Argentina’s Lithium Heartland

POSCO's acquisition of Lithium South assets tightens basin grip and fuels Argentina's rise in EV battery supply chain.

5 Aug 2025

Lithium is plentiful in Argentina, but control over how it is extracted and processed is far rarer. POSCO, a South Korean battery-materials heavyweight, appears determined to secure both. On July 30th, Lithium South, a Canadian miner, announced a preliminary agreement to sell its Hombre Muerto North project and nearby claims to POSCO Argentina for up to $62m. The deal is subject to due diligence and regulatory sign-off.

POSCO already owns the adjacent Sal de Oro project and recently began operating Argentina’s first lithium hydroxide plant, located in Salta. Acquiring Lithium South’s holdings would allow the company to consolidate operations across the Hombre Muerto basin, one of the richest brine sources in the country, and tighten its control over the path from raw brine to battery-grade chemicals. Lithium South described the sale as placing the asset “in the hands of a strong regional operator,” framing it as part of a deliberate strategy of basin consolidation.

The move comes as Argentina attempts to move beyond its traditional role as a raw-materials supplier. Together with Chile and Bolivia, it forms part of the so-called Lithium Triangle, home to roughly a third of the world’s reserves. But whereas Chile has long imposed restrictions on lithium development, Argentina has encouraged foreign investment and downstream integration. POSCO’s approach, investing not only in extraction but also in conversion, mirrors that ambition.

The logic is increasingly evident. With electric vehicle demand climbing, firms want not only access to lithium but also control over its transformation into battery-ready products. Analysts see vertical integration as a way to lower costs, reduce logistical headaches and build resilience into the supply chain.

Yet hurdles remain. The agreement still needs regulatory clearance, and POSCO must demonstrate it can integrate new assets smoothly. The Argentine political and economic landscape is rarely predictable.

Nonetheless, the direction of travel is clear. As global competition for lithium intensifies, the winners may not be those with the biggest reserves but those with the tightest grip on processing and proximity to the source.