Ganfeng Lithium to acquire Bacanora for $264mln

China-based lithium producer Ganfeng Lithium has agreed to acquire Bacanora Lithium for up to £190 million ($264 million) via Shanghai Ganfeng, its wholly-owned subsidiary, according to a statement filed to the Shenzhen Stock Exchange on Friday May 7.

Ganfeng Lithium had previously said it would increase its stake in London-listed Bacanora to 28.88% from 17.41%, a process which is still going through relevant procedures, the statement added.

Friday’s announcement follows the signing of a joint venture agreement between Bacanora and Ganfeng Lithium in February, in which the latter had exercised the option to increase its stake in the Mexico-based Sonora lithium project to 50%.

The Sonora project has not started yet, but stage 1 production is expected to deliver 20,000 tonnes of lithium hydroxide, according to the statement. The statement did not specify when stage 1 production would commence.

Fastmarkets’ assessment for the lithium hydroxide monohydrate 56.5% LiOH.H2O min, battery grade, spot price range exw domestic China was 82,000-86,000 yuan ($12,669-13,287) per tonne on Thursday. The price is up by 93.1% from 41,000-46,000 yuan per tonne at the beginning of this year.

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