A PYMNTS Company

Australia: Albemarle signs US$1.2B lithium JV agreement

 |  December 17, 2018

Mineral Resources (MRL) has signed a binding agreement with Albemarle to divest a 50% stake in the Wodgina lithium project located in Western Australia for US$1.2 billion.

The companies have also set up a lithium joint venture and signed an exclusivity agreement for the deal.

The transaction will allow Albemarle to purchase a 50% interest in the Wodgina project that comprises tenements, assets, and related infrastructure.

Excluded from the agreement at Wodgina are mineral rights to iron ore, which would be retained exclusively by MRL, and tantalum, which would remain held by a third party.

After closing of the acquisition and completion of the construction and ramp-up of the spodumene concentration plant, Wodgina is expected to produce approximately 100,000 tonnes per year of lithium carbonate equivalent (LCE). This is planned to be used as feedstock for the future lithium hydroxide plant.

The parties would jointly fund, design, build, and operate a battery-grade lithium hydroxide plant to be constructed at Wodgina in two stages of up to 50,000 tonnes a year of LCE each.

Full Content: Metal Bulletin

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.