Posco (KRX:005490) teamed up with Australian mining company Hancock Prospecting to develop a lithium production venture with a 30,000-ton annual capacity, the steelmaker said Monday.

The collaboration will identify optimal plant locations, including South Korea, and determine investment specifics in later stages. Posco aims to secure a robust lithium supply chain, bypassing US Foreign Executive Order Committee regulations, while expanding its lithium value chain from extraction to recycling, the release said.

Shares of Posco fell nearly 2% in recent trade on Tuesday.