Canadian company Millennial Lithium Corp said on Tuesday that Chinese battery maker Contemporary Amperex Technology Co Ltd (CATL) had agreed to buy the miner for C $ 376.8 million ($ 297.3 million), after outbidding on his compatriot Ganfeng Lithium.
CATL earlier this month had made a C $ 3.85 per share cash offer, Argentina-focused Millennial Lithium said, outbid the C $ 3.60 per share offer made in July by Ganfeng, one of the world’s largest producers of lithium chemicals used in electric vehicles (EVs).
CATL’s outright acquisition of a lithium miner follows its purchase of stakes in another Argentina-focused lithium company, Neo Lithium Corp, as well as Greenland-focused North American Nickel and Australian Pilbara Minerals with the aim of strengthening the supply of key batteries. Ingredients.
In April, CATL announced that its subsidiary had agreed to take a stake in China Molybdenum Co’s Kisanfu mine, a major source of metallic cobalt for batteries, in the Democratic Republic of Congo (DRC) for $ 137.5 million.
Millennial Lithium said on Tuesday that CATL also reimbursed it for the $ 10 million termination fee paid to Ganfeng, which had until Monday to match the highest bid but decided not to accept it.
CATL’s delay accusation puts the brakes on a wave of prolific acquisitions by Ganfeng so far in 2021, which has seen him agree to buy the shares he does not already own in Bacanora Lithium, a company Mexican for $ 264.5 million, as well as interests in a lithium mine. in Mali and a salt lake in China for $ 130 million and 1.47 billion yuan, respectively.
The deal also comes as prices for battery-grade lithium carbonate in China have more than tripled so far this year as demand for electric vehicles recovers in the wake of the pandemic.