By Kwanwoo Jun
South Korea's steel giant Posco said Thursday that it has signed a contract to buy a 30% stake in a Canadian-owned nickel miner and smelter in Australia for $240 million.
The deal with First Quantum Minerals Ltd., which wholly owns Ravensthorpe Nickel Operation, marks Posco's latest push to expand into electric-vehicle battery materials.
Posco said it expects to secure about 7,500 metric tons of nickel, an ingredient of anode materials used to make EV batteries, annually from 2024 under the deal.
Posco said the projected supply of nickel from Ravensthorpe a year should be good enough to make batteries for 180,000 EVs.
The South Korean company said it aims to secure 100,000 tons of nickel in total by 2030.
Posco has said it also aims to secure 220,000 tons of lithium, another key battery material, by 2030 to boost significantly its output of EV battery materials.
The company seeks to boost its global market share for EV battery materials to 20% by 2030.
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(END) Dow Jones Newswires
May 20, 2021 00:45 ET (04:45 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.