CATL to buy stake in Pilbara Minerals in Australia for A$ 55 mill.

Chinese battery company Contemporary Amperex Technology (CATL) has announced that it will buy an 8.5 % stake in Australian lithium mining company Pilbara Minerals for around $ 37.5 mill. (A$ 55 mill).

The money raised from the deal will be used by Pilbara to expand the Pilgangoora Lithium-Tantalum Project, its key asset in Western Australia. Pilgangoora is a major lithium mining project that has been developed by Pilbara in two stages, with stage one being commissioned in August 2018. Currently producing 2 mill. t/a of lithium, stage two will expand this to 5 mill. With provable reserves of 108.2 Mt of lithium, Pilgangoora was recently estimated to be the fourth largest lithium mine in the world. The money will also be used for a processing facility to produce lithium hydroxide in South Korea. The news comes at a time when lithium prices are in freefall, with the price of lithium carbonate dropping 17 % so far in 2019. (, September 5, 2019)