Sept. 28 (Reuters) – Canadian company Millennial Lithium Corp announced on Tuesday that Chinese battery maker Contemporary Amperex Technology Co Ltd (CATL) has agreed to buy the miner for C $ 376.8 million (C $ 297.3 million). dollars), after having outbid 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.
(Reporting by Sabahatjahan Contractor in Bengaluru and Tom Daly; Editing by Sherry Jacob-Phillips)