Lithium buyers eye cheaper early-stage deals

Precious resource: Evaporation ponds at an Albemarle Corp lithium production facility in Nevada. The company is exploring deals in Australia to secure supplies of the commodity seen as crucial to emerging technologies. — Reuters

MELBOURNE: Emerging Australian lithium companies are witnessing a surge in buyouts as their lower valuations and cash needs attract some of the world’s top producers of the battery material and other suitors who are racing to secure supplies.

Driven by receding prices of lithium and by major producer Chile nationalising the industry earlier this year, companies such as Albemarle Corp, the world’s biggest lithium producer, have been sniffing around for buys in Australia, which makes the most lithium in the world and has more than 80 lithium-related companies listed on its main stock exchange.