China’s Tibet Summit Resources and its partner NextView Capital will buy Canadian lithium producer Lithium X for $206 million, in a move that appears to be part of a wider Chinese strategy to secure access to raw materials for the world’s largest electric car market, the Financial Times reports.
Lithium X will be delisted from the TSX Venture Exchange after the deal, Tibet Summit Resources said, and shares in Lithium X were halted for trading Monday. The deal is the second deal by Beijing-based NextView Capital in the battery metal lithium market in the last two weeks, following its agreement last week to buy a 20 percent stake in London-listed Bacanora Minerals.
Chinese companies have been on a buying spree for lithium and cobalt companies over the past year, signing agreements for future supply of the metals. The string of deals come as auto companies have announced ambitious plans for electric vehicles in the country.