South Korea’s Posco Holdings considering investment in Alberta lithium

South Korean company Posco Holdings is considering investing in the exploration, development and commercialization of lithium in Alberta.

South Korean company Posco Holdings is considering investing in the exploration, development and commercialization of  lithium in Alberta.

The company– which is best known for steel production but also invests in minerals, energy and more– signed a memorandum of understanding this week with provincial Crown corporation Invest Alberta.

Under the terms of the agreement, Posco will begin exploring prospects for lithium investment in Alberta, while the province will support the Korean company’s ambitions by helping them navigate the acquisition of mining rights as well as regulatory and tax-structure requirements.

“Through our strategic collaboration with Invest Alberta, Posco Holdings is not only advancing our commitment to securing lithium but also reinforcing our standing in the global secondary battery supply chain,” said Kyung Sub Lee, Posco Holdings executive vice-president, in a news release.

“When we make these public types of announcements, it’s a clear signal to the market that says Posco is highly interested, highly engaged,” said Rick Christiaanse, chief executive of Invest Alberta.

“They are well advanced, so it’s really now just a question of them picking the right projects and then moving forward.”

The development is the first public indication that major foreign investors are eyeing Alberta’s lithium resources.

Lithium, a light metal, is in demand around the globe right now because it is a key component in electric vehicle batteries.