Posted on Apr 20, 2021, 12:34 PMUpdated Apr 20, 2021, 2:39 PM
The lithium world is getting a little more structured. On Monday, two Australian companies decided to merge to form the fifth largest producer in the world. Orocobre and Galaxy Resources, both listed on the Sydney Stock Exchange, announced on Monday their intention to get married in a $ 3.1 billion transaction. Orocobre boss Martín Pérez de Solay sees it as “ the opportunity to create an independent leader in lithium “.
The merger aims to give them sufficient financial firepower to develop lithium projects and take advantage of the explosion in demand linked to the rise of electric cars. By investing in the Olaroz and Sal de Vida mines in Argentina and James Bay in Canada, the new group ensures that it can increase its production of lithium carbonate, an essential ingredient in electric batteries, from 40,000 to 100,000 tonnes in coming years. By 2025, production could even reach 135,000 tonnes.