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

PetroChina becomes primary stakeholder of Iraqi oilfield after Exxon’s exit

Iraq has finalized a settlement agreement with Exxon Mobil to pave the way for the U.S. energy giant’s exit from the West Qurna 1 oilfield. The agreement allows PetroChina to assume the role of the lead contractor for the oilfield. PetroChina, having the largest stake after Exxon’s…

DR Congo’s new germanium plant aims to end China’s dominance

A newly built plant in the Democratic Republic of Congo (DRC) is poised to play a significant role in global germanium production, potentially alleviating China’s predominant position in this crucial metal used widely in electronics and solar cells. China currently accounts for…

Northvolt exits Novo Energy venture with Volvo, eyes North American expansion

Swedish electric-vehicle battery maker Northvolt reached an agreement with Volvo Cars on Wednesday to sell its stake in their joint battery venture, Novo Energy, and explore potential collaborations in North America. The financial details of the transaction were not disclosed. Northvolt, currently under U.S. bankruptcy protection, halted funding…

Stay informed

error: Content is protected !!