Australian lithium developer Liontown’s board favors Albemarle’s $4.3 billion offer
- September 4, 2023
- Posted by: Quatro Strategies
- Categories: Asia Pacific, Mining & Metals, Rare Earths & Commodities
Shares of Australia’s Liontown Resources have surged 11.5% after the lithium developer’s board endorsed a renewed AUD 6.6 billion ($4.3 billion) bid from Albemarle Corp, the world’s largest producer of the battery material. Emerging Australian lithium companies have been attracting buyouts as their lower valuations and cash requirements entice top lithium producers and others looking to secure supplies.
The new cash offer of AUD 3 per share represents a premium of 14.5% to Liontown’s last close on September 1 and is 20% higher than Albemarle’s offer of AUD 2.50 per share made in late March, which Liontown had rejected as too low.
Liontown’s board intends to unanimously recommend shareholders vote in favor of the new offer, provided there is no superior proposal and following an independent expert’s report to assess the deal.
Lithium is in high demand for electric vehicle batteries, and Australian projects have become more appealing than those in other major producer Chile, which unveiled a plan to nationalize its industry in April.
Liontown controls two significant lithium deposits in Western Australia, with first production scheduled for mid-2024 from its flagship Kathleen Valley project, one of the world’s largest and highest-grade hard rock lithium deposits. Liontown also has supply agreements with Ford Motor, Tesla, and the battery unit of South Korea’s LG Chem.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
U.S. to launch Pentagon refining plan in push for mineral independence
U.S. President Donald Trump is preparing to sign an executive order that would authorize the construction of metals refining facilities on Pentagon military bases as part of his broader plan to strengthen domestic production of critical minerals and reduce reliance on China. The initiative underscores Trump’s emphasis on national security, as many U.S. military weapons, from fighter jets to submarines, rely on minerals processed in China.
The Pentagon, which controls approximately 30 million acres of land, would collaborate with other federal agencies to establish processing facilities on military bases, effectively sidestepping the need for commercial land acquisition and avoiding resistance from local communities. This move is part of a broader effort to counter China’s dominance in the global metals supply chain, particularly in critical minerals such as rare earths, cobalt, and lithium, which are essential for defense technologies, clean energy, and advanced manufacturing.
Argentina’s lithium sector expands despite global oversupply concerns
Argentina, a key player in South America’s “lithium triangle” along with Chile and Bolivia, is aiming to boost its lithium production significantly. Currently the world’s fourth-largest producer, Argentina has plans to launch four new lithium projects. These initiatives could substantially increase its annual lithium carbonate…
Biden set to use G20 to offer financial support to the global south
U.S. President Joe Biden is set to attend the Group of 20 (G20) meeting in India with a proposal to offer financial support to the “Global South.” He aims to persuade fast-growing economies in Africa, Latin America, and Asia that there is an alternative to China’s Belt and Road project