South Korean conglomerate STX Corp. has taken significant steps to strengthen its position in the global battery materials market by establishing partnerships in Peru and Brazil. The company recently entered into a confidential agreement to mine lithium and trade spodumene, a critical component in lithium-ion batteries.
On Monday, STX Corp. announced it had invested in a Peruvian mine known to have considerable lithium reserves. This strategic move is aimed at bolstering the supply chain for key raw materials necessary for battery production. As part of its expansion strategy, STX has also secured annual rights to transport a substantial volume of lithium concentrate from Brazil.
The company's focus on securing raw materials extends beyond just mining and transportation. After conducting composition tests on lithium spodumene samples, STX is now in talks to finalize contracts for primary processing with domestic secondary battery manufacturers. These negotiations are part of a larger plan that includes setting up a lithium refining plant, and ensuring an efficient supply chain that can support the demands of both domestic and international battery companies.
STX's venture into the lithium market follows its investment in August when the firm acquired a 20% stake in an Indonesian nickel mine, further diversifying its mineral resource holdings. The most recent equity investment supports the preparatory stages of mining operations at the Peruvian lithium site, which is estimated to house 20 million tons of reserves.
Additionally, the deal with the Brazilian partner will facilitate the transportation and sale of over 300,000 tons of lithium spodumene concentrate annually. This raw material will then be refined to high-purity lithium, catering to the needs of domestic secondary battery companies and feeding into STX's planned refining plants.
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