During the June 21 Quarter, Pilbara Minerals has completed further due diligence on the proposed POSCO DSJV and its lithium hydroxide conversion facility located in Gwangyang, South Korea. Significant positive progress has been achieved in the negotiation of formal documentation, which was supported by a POSCO representative coming to Perth during the Quarter.
Completion of negotiations and documentation is currently targeted for the end of July 2021 with Board approvals to follow shortly thereafter. Final agreed terms of the DSJV, inclusive of any variations to the original binding term sheet dated August 2019, will be provided to the market once finalised.
As previously advised to the market, POSCO’s Board has already approved the development of the South Korean chemical conversion facility as it expands its participation in battery materials, with this plant to be supplied with spodumene concentrate from the Pilgangoora Operation. Pilbara Minerals participation in the DSJV with POSCO will support its strategy to diversify both its customer base and suite of products.