Lithium Americas has entered a bidding war for Argentina-focused Millennial Lithium with a US$400 million stock-and-cash offer. The bid comes a month after China’s Contemporary Amperex Technology Co Ltd. (CATL) agreed to purchase Millennial for C$377 million (US$303.8 million).
“In proximity to Caucharí-Olaroz, Millennial’s 100%-owned Pastos Grandes lithium brine project represents an attractive regional growth opportunity for Lithium Americas,” said Jonathan Evans, Lithium Americas president and CEO. In 2019, Millennial prepared a feasibility study that supports production of 24,000 tonnes per annum of battery-quality lithium carbonate for 40 years at the site.
“As we bring Caucharí-Olaroz into production over the next year and continue to advance our Stage 2 expansion planning, the addition of this highly complementary lithium brine resource further enhances our long-term growth strategy in Argentina and leverages our technical and development expertise,” said Evans.
In accordance with the CATL Agreement, Millennial has notified the company that it considers Lithium Americas’ offer to be a “Superior Proposal,” and has given CATL until Nov. 16 to revise its original offer.