Australian miners Orocobre, Galaxy to create $4 billion lithium giant
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Orocobre and Galaxy Resources, two of Australiaâs top lithium producers, have agreed to a $4 billion merger amid soaring prices and a brighter demand outlook for the key raw material in electric vehicle batteries.
In a deal announced on Monday, Orocobre would buy Galaxy through a scheme of arrangement to create the worldâs fifth-largest lithium chemicals producer.
Galaxy Resourcesâ Sal de Vida lithium project in Argentina.
Credit:Bloomberg
âBoth Orocobre and Galaxy shareholders, will benefit from the diversification, growth and scale of a top-five global lithium chemicals company,â Orocobre chairman Robert Hubbard said.
MELBOURNE -Australian lithium miner Orocobre Ltd is buying smaller domestic peer Galaxy Resources for $1.4 billion to create the world s fifth most valuable producer of the key raw material for. | April 18, 2021
19 April 2021
Australian lithium producers Orocobre and Galaxy are to merge to create what they claim will be the fifth largest pure-play lithium chemicals company in the world, with a market worth of around $4 billion, and lithium operations in Australia, Chile, Argentina, Canada and Japan.
Lithium is one of the central components of lithium-ion batteries. With electrification of transport ramping up and with grid-scale batteries playing an increasingly central role in renewably-powered electricity networks, demand for lithium is expected to soar this decade. Australia is by far the biggest producer of lithium in the world, followed by Chile.
There are two widespread methods of mining lithium: extracting lithium ore spodumene concentrate from hard rock, and extracting lithium carbonate from brine, generally found in inland salt lakes particularly in South America.
Australia s Orocobre buys Galaxy to make world s fifth-largest lithium company Shruti Sonal ,
By Shruti Sonal
(Reuters) - Australia s Orocobre Ltd and Galaxy Resources announced a A$4 billion ($3.1 billion) tie-up on Monday to create the world s fifth largest lithium miner, as demand soars for the key raw material in electric vehicle batteries.
Orocobre will aquire peer Galaxy under a scheme of arrangement for A$1.78 billion in shares, also creating Australia s largest lithium pure play. It s overwhelmingly positive. On a high level, you have got significant synergies with both businesses having an Argentina base, said analyst Reg Spencer of broker Canaccord Genuity.
New Lithium Giant Emerges to Feed Surging Battery Demand yahoo.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from yahoo.com Daily Mail and Mail on Sunday newspapers.