The world’s largest maker of electric-vehicle batteries has agreed to buy Canadian miner Millennial Lithium in a move to bolster its supply of key mineral lithium.
Chinese battery maker Contemporary Amperex Technology (CATL) outbid rival Ganfeng Lithium‘s July C$353 million offer with its own C$376.8 million ($297.3 million) bid on Tuesday valued at C$3.85 per common share.
Millennial Lithium said in a statement the all-cash offer isn’t subject to a financing condition and is a “premium of approximately 6.9% to the price offered under the Ganfeng” agreement.
The statement went on: “Ganfeng elected not to exercise its right to match and, as a result, Millennial terminated the Ganfeng Arrangement Agreement …and entered into the CATL Arrangement Agreement.”
Lithium is a key component in the manufacture of batteries and CATL has been busy securing future supplies. It previously took stakes in Neo Lithium—an Argentina-focused lithium company—and North American Nickel, which is Greenland-focused, and Australian company Pilbara Minerals.
Back in June, CATL extended a battery-supply deal with Tesla, as per reports. It said CATL would supply battery cells to Tesla, which makes its Model 3 and Model Y vehicles in Shanghai, until December 2025.
