Wednesday, December 8

Lithium Americas expands in Argentina: will buy Millennial for US $ 400 million

The agreement is announced one day after the deadline for CATL respond to the offer from Lithium Americas for Millennial. CATL is the world’s largest manufacturer of electric vehicle batteries, but it does not produce lithium.

The actions of Lithium Americas They were up 3.5% on Wednesday, while Millennial’s were down about 3%.

Lithium Americas said it believes the fact that it is based in Canada worked in its favor.

“This transaction has less regulatory risk than CATL or another Chinese company. Like it or not, there are critical mining strategies by the governments of the United States, Canada and Australia that could have played a role in this.”he told Reuters Jon Evans, the CEO of Lithium Americas.

Evans said he does not expect CATL to challenge the deal.

“This is a great expansion opportunity for us in Argentina,” he said., adding that the company expects to begin construction within two years. Once operational, the project is expected to produce 24,000 tonnes of battery-grade lithium carbonate per year for 40 years.

Lithium Americas has been building the Cauchari lithium project in Argentina with Ganfeng Lithium Co – its largest shareholder – near the Millennial lithium deposit, which made the purchase even more attractive, Evans said.

“I don’t think opportunities like this are going to be seen in the future, at least not at the valuations we have here,” he said.

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