lithium price surge to ignite deals bonanza - lithium battery price
London: lithium prices have quadrupled in three years, which will drive global growth.
With major players scrambling for dominance and providing the required metal for the electric vehicle battery revolution, billions of dollars of deals have surged.
As companies seek more market control from Western rivals, China is expected to lead the M & A boom.
Asian countries accounted for more than half of global electric vehicle sales last year, surpassing 1 million for the first time.
This is just a taste of the government's target of 7 million cars by 2025.
"You'll see a high level of activity driven mainly by the Chinese this year," Chris Berry of New York --
Analyst at Energy Metals, founder of House Mountain Partners LLC, said in an email.
"The necessary spatial integration will now begin.
"Ganfeng Lithium Co. , China's largest supplier, intends to use the proceeds planned to be listed in Hong Kong to expand the acquisition boom.
It could raise about $1, according to a person who knows the details, and he asked not to be named because the information was private.
A company official said on Tuesday that the number of shares and earnings had not yet been finalized until regulatory approval.
Bidders, including Tianqi Lithium, are weighing up Nutrien Ltd. in the South American lithium giant Soc Quimica & Minera de Chile SA (SQM).
People familiar with the matter said earlier this month that Apocalypse had been considering selling Hong Kong shares to raise up to $.
J & R Optimum Energy Co. , Shaanxi held talks on the possibility of acquiring new miners in Australia.
Albemarle Corp, the world's largest producer, said this month that it also has the firepower of potential purchases. Philadelphia-
S. -based FMC plans to spin off its lithium business, the metal's five largest producer, in a deal in the third quarter of this year, the company said, the company may set its value at $3.
In recent years, China's Ganfeng and apocalypse have grown rapidly to challenge the three largest producers in the long-time dominant market-Albemarle, SQM and FMC.
"There will be one or two new players in the oligopolistic monopoly," said Vancouver chief executive Tom Hodgson --
Headquartered in lithium, USA
The pursuit of deals has raised concerns about competition.
Earlier this month, Chilean government agency Corfo made a request to the national economic prosecutor to ask the antitrust agency to prevent the sale of SQM shares to any Chinese country. owned company. End-
Users are also competing.
In January, Toyota's trading arm acquired a 15% stake in Orocobre Co. , Ltd. , which produces lithium in Argentina, australia's Pilbara Mining Co. Ltd has won investments in Posco and Great Wall Motor Company of China in South Korea.
Galaxy Resources Co. , Ltd. said that as it advances the Sal de Vida project in Argentina, it is seeking to increase its partners and has held informal talks with automakers and battery suppliers, including Panasonic.
Berry of House Mountain says some smaller companies are looking to sell assets because there are a lot of planned mines on the market and there are concerns that prices will peak.
Morgan Stanley predicted last month that the price of lithium would be almost halved by 2021, which had an impact on lithium producers, and Wood Mackenzie Ltd.
According to Bloomberg New Energy Finance, due to the new project in the delivery of planned output challenges, the possibility of price collapse is still small.
Pierbala CEO Ken Brinsden said yesterday that forecasters continue to underestimate the level of demand in China and South Korea.
The price of battery grade raw materials will continue to be supported by strong demand, he said.
Simon Morse, London, says the outlook for consolidation suggests that the lithium industry is maturing after experiencing recent price increases
Consultant general manager of Benchmark Mineral Intelligence. —