Pemex aims to develop lithium extraction projects: CEO

Pemex aims to develop lithium extraction projects: CEO

In a significant development for the global lithium market, POSCO Argentina S.A.U. has signed a letter of intent (LOI) to acquire the Hombre Muerto North Lithium Project, Sophia 1, 2, and 3, and the Hydra X and Hydra XI concessions from Lithium South Development Corporation (TSXV: LIS). The acquisition, announced on July 30, 2025, is valued at $62 million and includes a non-binding LOI subject to several conditions [1].

The cash consideration for the assets will be paid in full by POSCO Argentina S.A.U. over the course of the transaction, which includes a 60-day due diligence period and a subsequent 60-day period for the negotiation and execution of the definitive agreement. During this period, LIS has agreed not to solicit or entertain offers from any other parties. The transaction is also subject to customary regulatory and government approvals and the approval of LIS shareholders at a future meeting.

Canaccord Genuity Corp. acted as the financial advisor for Lithium South Development Corporation in this transaction.

This acquisition aligns with POSCO's strategic focus on expanding its lithium extraction projects. As lithium demand continues to grow, driven by the increasing adoption of electric vehicles and energy storage solutions, POSCO's move to secure these strategic assets positions the company well in the competitive lithium market.

References:

[1] https://www.marketscreener.com/news/posco-argentina-s-a-u-signed-a-letter-of-intent-to-acquire-hombre-muerto-north-lithium-project-sop-ce7c5fdcd88bf126