Lithium producer Galaxy Resources Limited (ASX: GXY) has secured a $US280 million ($371 million) land sale to Korea’s POSCO.

In a statement to the ASX on Tuesday, the Perth-based Galaxy Resources said it has entered into a non-binding sale with POSCO to sell the northern part of its Salar del Hombre Muerto tenements in Argentina.

Galaxy will retain ownership of the southern area of the basin, which is estimated to be home to a resource equivalent to 4.09 million tonnes of lithium carbonate.

POSCO will pay Galaxy $US280 million. The funds will be used to progress the Sal de Vida Project development in Catamarca Province.

“This transaction with POSCO provides a substantial cash injection which underpins the development of Galaxy’s Sal de Vida brine project in the Catamarca Province of Argentina,” Galaxy Chairman Martin Rowley said.

“The development of Sal de Vida by Galaxy, as a 40-year mine life project producing the equivalent of 25ktpa of battery grade lithium carbonate, will be based on the 100% retained reserves and will not include any of the estimated resource contained in the tenements being sold to POSCO.”

According to Trading Economics, the price for lithium, often used in batteries, has more than doubled.

With the ongoing push towards sustainable energy sources, which often require vast amounts of battery storage, some pundits believe lithium prices — and their miners — will be prime beneficiaries.

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