Chemicals firm Albemarle Corporation has signed a definitive agreement to acquire all of the outstanding equity of lithium carbonate firm Guangxi Tianyuan New Energy Materials (Tianyuan).
The deal was made through its lithium converter subsidiary Albemarle Lithium UK Limited, which is located in Guangxi, China.
Under terms of the agreement, Albemarle will acquire all outstanding equity from Tianyuan's shareholders for around $200 million, subject to certain adjustments.
Albemarle expects the transaction, which is subject to customary closing conditions, to close early next year.
Kent Masters, Albemarle CEO, said: "The acquisition of Tianyuan, which owns and operates a newly constructed lithium processing plant, aligns with our strategy to pursue profitable growth in line with customer demand.
"This will be a key component of our next wave of projects designed to increase our conversion capacity in a capital-efficient manner in the coming years.
“As the global transition to cleaner energy rapidly develops, this added lithium capacity will enable us to help our customers achieve their growth and sustainability ambitions."
Founded in 2017, Tianyuan is building a 25,000 metric ton lithium carbonate equivalent (LCE) processing plant near the Port of Qinzhou in Guangxi to produce battery-grade lithium carbonate and lithium hydroxide.
The plant is expected to begin commercial production in the first half of 2022.