Australian lithium developer Liontown’s board favors Albemarle’s $4.3 billion offer

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.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

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.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Norway’s Statkraft considering re-investment in Britain’s offshore wind market

Norwegian state-owned energy company Statkraft is weighing the possibility of re-entering the UK offshore wind market, as per its CEO, Christian Rynning-Toennesen. While the UK remains under consideration, the primary focus of Statkraft remains on Ireland, Norway, and Sweden…

US expected to introduce further measures against China amid escalating decoupling trend

The United States is expected to implement further measures to limit competition from China, as the trend of “decoupling” between the two countries intensifies. The recent advancement of a bill in the U.S. Senate requiring China’s ByteDance to divest TikTok underscores the growing scrutiny…

U.S. holds first-ever Gulf of Mexico offshore wind auction

The U.S. Gulf Coast, traditionally known for being an offshore hub for oil and gas production, is taking a novel approach to the nascent offshore wind industry. Instead of focusing solely on grid-connected power generation, the region’s players in the offshore wind sector are exploring the potential of the upcoming offshore wind auction as a means to foster a new green hydrogen supply chain for the Gulf Coast’s extensive industrial corridor.

Stay informed

error: Content is protected !!