Lithium is recording record prices and it won’t put off of more deals for the key battery metals.
A number of take overs of lithium miners have been announced recently including a proposed takeover of Millennial Lithium Corp of Canada. by the world’s largest battery maker ( Contemporary Amperex Technology Co.). Industry consultants, investment bankers and analysts see this as just a taste of things to come, even with increasing prices for the silver coloured white metal that’s a critical ingredient to power electric cars and trucks.
Lithium carbonate prices in China are at record highs after a major increase in the past year, lithium exports has also climbed due to tight supply and stable battery demand, though at a slower pace than the domestic surge due to the absence of a spot market, according to the Analysts.
The rally comes as a global impetus for less polluting energy sources that has car makers and battery manufacturers competing to secure supplies of Rare Earth commodities including lithium, copper and nickel. Two Chinese companies are in a bidding war for Canada’s Millennial,
That bidding war “Just a taste of what’s to come,” comment from Chris Berry of House Mountain Partners. “I do see more mergers and take overs even at existing prices.”
The type of capital entering the electric cars and trucks. The supply chain is more patient than in past years, Berry said.
“These are larger strategic players from both inside and outside the EV supply chain positioning amidst the de-carbonisation ideas