Chinese lithium producer Ganfeng Lithium has finalized an agreement worth $342.7 million to acquire a 40% stake in the Mali Lithium project from Australian mining firm Leo Lithium.
The deal enables Ganfeng Lithium to buy the entire output from phase 1 of the 506,000 tons per annum project.
“The board believes that the transactions are in line with the company’s strategy of upstream and downstream integration and the further development in the new energy vehicle industry sector,” stated Ganfeng Lithium, adding that, “It will also further strengthen the company’s control over Mali Lithium, secure supply of lithium resources, facilitate the business expansion of the company and enhance its core competitiveness.”
According to market research firm DBS Securities, the acquisition deal is expected to increase Ganfeng Lithium’s self-sufficiency rate for raw materials required for electric vehicle manufacturing from 40% to 70%.
Through the transaction, Ganfeng Lithium will also hold 70% offtake rights in the project’s second phase, which is expected to have an annual capacity of 500,000 tons.
