Canadian-based Lithium Americas Corp. (LAC) has entered a definitive agreement to purchase fellow Canadian firm Millennial Lithium Corp (MLC) for $400 million after outbidding China’s Contemporary Amperex Technology Company (CATL).
Prior to entering the agreement, MLC terminated the $305 million September agreement with CATL in accordance with its terms, as the China firm did not exercise its right to match the offer.
CATL is one of the world’s largest EV lithium-ion battery manufacturers but does not produce any lithium.
The transaction is likely a lower regulatory risk due to strategies by the US, Canadian and Australian governments, LAC CEO Jon Evans told news outlet Reuters.
LAC hope to start construction of MLC’s flagship ‘Pastos Grandes’ lithium brine project in Argentina within two years.
The site is expected to produce 24,000 tons per year of battery-quality lithium carbonate over 40 years.