Ganfeng Lithium has agreed to buy Argentina-focused mining group Lithea for up to $962 million, as China steps up its battle for the metals needed to power electric vehicles, reports the Financial Times.
The deal will give Shenzhen-listed Ganfeng rights to Pozuelos and Paston Grandes, two salt lake brines in Argentina that can produce lithium carbonate, a key material for batteries used in electric vehicles.
The acquisition comes amid a fierce debate over whether carmakers will face a shortage of lithium in coming years as the transition from combustion engines to battery-powered electric ones accelerates. The price of lithium carbonate has surged fourfold over the past 12 months, according to Benchmark Mineral Intelligence.