Chris Ellison’s Mineral Resources has pulled out of a billion-dollar deal that would have seen it acquire a stake in lithium hydroxide plants in China owned by its partner, battery chemicals giant Albemarle.
MinRes is also selling its stake in Albemarle’s Kemerton lithium hydroxide in Western Australia’s south-west as Mr Ellison moves to try to fund and build his own downstream processing plant.
The Albemarle lithium hydroxide plant at Kemerton in WA.
MinRes lithium boss Josh Thurlow said the WA-based company had unlocked capital in a move that opened the door to investing in its own integrated lithium hydroxide assets onshore or overseas.
Mr Thurlow said the new agreement was a “win-win” for MinRes and Albemarle. New York-listed Albemarle said it agreed to amend the terms of the transaction signed in February, when the companies agreed to a deal to produce lithium battery chemicals in China using spodumene from their Wodgina mine.
Albemarle said the revised agreement with its partner was intended to provide “greater strategic opportunities” for both Albemarle and MinRes in an evolving lithium market.
Under the new agreement, Albemarle will take 100 per cent ownership of the Kemerton plant, and also retain full ownership of the Qinzhou and Meishan lithium processing facilities in China.
Albemarle chairman and chief executive Kent Masters at the Kemerton lithium hydroxide plant. Tony McDonough
Mr Ellison had been trying to convince Albemarle about the merits of building a lithium hydroxide plant near the Wodgina mine they co-own, when in February he agreed to acquire a 50 per cent share in the two Chinese plants at a cost of about $US660 million ($975 million), including an initial payment of $US350 million. Albermarle
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