China's Ganfeng buys SQM's stake in lithium project for $87.5m
SANTIAGO – Chile's SQM, one of the world's largest lithium producers, said on Monday that it agreed to sell its 50% stake in the Cauchari-Olaroz project in Argentina to China's Ganfeng Lithium for $87.5-million.
The deal also stipulates that Ganfeng will pay SQM an additional $50-million if the project's goals for selling lithium are met, SQM said in a statement.
The transaction is expected to be completed in the fourth quarter, SQM added.
Canada's Lithium Americas Corp (LAC) said in a separate statement that its stake in Cauchari-Olaroz would rise to 62.5% from 50% now as a result of the deal. Ganfeng, which will own 37.5% of the project, also agreed to give LAC a $100-million loan, allowing it to pay for its part in initial capital expenditures.
The shake-up in ownership in the project in northern Argentina comes as China has been aggressively promoting electric vehicles, whose batteries use lithium, to help domestic carmakers build global brands and to reduce air pollution.
Earlier this year, China's Tianqi Lithium said it was buying a 24% stake in SQM for $4.1-billion. The sale has not yet been approved by Chile's antitrust regulator.
The Cauchari-Olaroz project is expected to start production in 2020.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation