Connect with us

Energy & Critical Metals

Lithium Americas Wins Battle for Millennial Lithium for $400M

Lithium Americas (LAC) has agreed to acquire Argentina-focused Millennial Lithium (Millennial) in a $400m stock-cash deal. According to the transaction,…Read…

Published

on

This article was originally published by Mining Technology

(LAC) has agreed to acquire Argentina-focused Millennial Lithium (Millennial) in a $400m stock-cash deal.

According to the transaction, Lithium Americas will buy all of Millennial’s outstanding shares for $3.73 (C$4.70) apiece.

Millennial shareholders will own around 9.1% of Lithium Americas after the deal is finalised.

The latest offer outbids China’s electric-vehicle battery maker Contemporary Amperex Technology (CATL) offer of C$3.85 per share in cash, which was made in September 2021.

The transaction comes a day after the expiry of the timeline for CATL to respond to the offer made by Lithium Americas to acquire Millennial.

Millennial has terminated the arrangement agreement with CATL before signing the arrangement agreement with Lithium Americas.

The acquisition contest over Millennial comes amid surging global demand for the electric vehicle (EV) battery metal.

Lithium Americas president and CEO Jonathan Evans said: “This transaction is a rare opportunity to add a complementary lithium brine project and leverage our expertise developing Caucharí-Olaroz as the largest new lithium carbonate operation to come online in over 20 years.”

Millennial president and CEO Farhad Abasov said: “Lithium Americas brings significant technical expertise and financial flexibility de-risking the development of Pastos Grandes and generating further upside for Millennial shareholders.”

In addition, Lithium Americas has reimbursed a $20m termination fee to Millennial, which will be paid to CATL.

The deal is to be closed in January 2022 and pending regulatory approvals.

Lithium Americas expects the addition of Millennial’s Pastos Grandes lithium brine project in Argentina’s Salta province to provide an ‘attractive regional growth opportunity’. It is located close to the firm’s Caucharí-Olaroz lithium project.

Post-deal completion, the shares and warrants of Millennial will be concurrently delisted from the TSX Venture Exchange.

Millennial earlier received an offer from Ganfeng Lithium.

The post Lithium Americas to acquire Millennial Lithium for $400m appeared first on Mining Technology | Mining News and Views Updated Daily.

Author: archanarani

Energy & Critical Metals

3 Rare Earth Stocks on Watch as Talk of a Chinese Mega-Merger Grows

At a time when both the global supply chain crisis and U.S.-China relations hang hotly in the balance, China has announced an important decision that threatens…

At a time when both the global supply chain crisis and U.S.-China relations hang hotly in the balance, China has announced an important decision that threatens to affect both matters significantly. Today, the Wall Street Journal reports that China is planning to create a new rare earth mining company that will be owned by the state. While there’s no question that the forming of such a company will directly affect rare earth stocks, so far the reactions from the sector have been mixed.

Source: LuYago / Shutterstock.com

What’s Happening With Rare Earth Stocks

The rare earth sector has been an interesting one to follow this year, particularly as the electric vehicle (EV) boom has highlighted a new market for its companies. The news out of China today hasn’t done much to affect Nevada-based MP Materials (NYSE:MP), a company that has seen more than its fair share of turbulence this past year but has remained overall in the green for most of it. As of this writing, MP stock is up 2.16% for the day, although it has declined slightly from the peak it saw this morning. While it’s down more than 6% for the week, the stock is in the green for the month by more than 2%.

In a state not too far away, though, things aren’t looking so rosy. Texas Mineral Resources Corp (OTCMKTS: TMRC) has seen its shares fall by more than 4% today, demonstrating a fairly turbulent pattern. Despite being up by more than 12% for the week, TMC is down for the month by almost 19%.

Many miles away in Australia, a similar company is experience similar patterns. Lynas Rare Earths (OTCMKTS:LYSCF) is down by more than 2% for the day with losses for the week just shy of that figure. For the month, though, the small stock has seen shares rise by more than 18%.

Why It Matters

China’s new firm, titled China Rare Earth Group, will be based in the country’s southern province of Jiangxi, an area rich in resources. It will be built through the merging of assets of several prominent state-owned mining firms. According to WSJ, part of the mindset behind this massive industry consolidation is the goal of gaining the clout necessary to “undercut Western efforts to dominate critical technologies.”

For a company like MP Materials, there will very likely be negative implications if the firm is indeed constructed. The company has emphasized that its goals involve helping restore the rare earth supply chain and helping reduce the sector’s heavy dependence on China. The international economic superpower that MP has focused on challenging is about to get considerably stronger and more powerful. That’s bad news for MP and most other rare earth stocks.

While some reports have framed it as a company well-positioned to accomplish an important task, the picture painted for investors hasn’t always been so positive. In October 2021, a report from Grizzly Research staked the claim that the company had issued unattainable projections. While the stock was down during that month, it’s been rising fairly steadily since. Earlier this year, InvestorPlace’s Joseph Nograles touted the upside potential he saw in MP stock as a key component of the emerging EV market.

What It Means

As TRMC and LYSCF trade at much lower levels than MP, it’s hard to gauge just how much they stand to be affected. What is clear, though, is that China is clearly furthering its quest to dominate the section of the global supply chain that concerns strategic metals. The construction of a state-owned giant to help the country gain further control of highly valuable rare earth materials certainly won’t do any favors for the U.S.

This story is certainly worth watching as it unfolds, but this is likely not the time for a bullish play on rare earth stocks.

On the date of publication, Samuel O’Brient did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

More From InvestorPlace

The post 3 Rare Earth Stocks on Watch as Talk of a Chinese Mega-Merger Grows appeared first on InvestorPlace.



Author: Samuel O'Brient

Continue Reading

Energy & Critical Metals

Dear NIO Stock Fans, Mark Your Calendars for This Potential Catalyst on Dec. 18

Fans of electric vehicle (EV) stocks are anxiously awaiting Nio Day, which has been confirmed to take place on Dec. 18 in Suzhou, China. Nio (NYSE:NIO)…

Fans of electric vehicle (EV) stocks are anxiously awaiting Nio Day, which has been confirmed to take place on Dec. 18 in Suzhou, China. Nio (NYSE:NIO) is expected to debut at least two new vehicle models and possibly a brand new vehicle brand. During Nio Day 2020, the EV maker unveiled the ET7 sedan to much fanfare. Deliveries for the ET7 sedan are expected to start in 2022 for most countries, although confirmation for this timetable will likely be answered at Nio Day.

Image showing a Nio store with a glowing logo on the front.Source: Andy Feng/Shutterstock.com

Nio also impressed shareholders after releasing its November delivery numbers. The company reported that it had delivered 10,878 vehicles, up nearly 106% year-over-year (YOY). This brings total year deliveries to 80,940 vehicles, up more than 120% YOY. The November numbers were much needed after Nio reported disappointing October deliveries. Those numbers came in lower due to supply-chain issues and chip shortages. InvestorPlace contributor Vandita Jadeja notes that Nio’s expected fourth-quarter deliveries of 23,500 to 25,500 vehicles will be difficult to accomplish.

Without further ado, let’s dive right in to what investors should know about Nio’s most exciting day of the year.

Nio Day: What NIO Stock Investors Should Know

  • Rumors are flying around that one of the new vehicles to be released during Nio Day is the ET5, a mid-sized sedan. The ET5 will reportedly compete with the BMW (OTCMKTS:BMWYY) 3-series and the Audi A4 at a lower price (Audi is owned by Volkswagen (OTCMKTS:VWAGY)).
  • The ET5 will likely be priced below the ET7, which has a base cost of around $69,000.
  • According to a research note from Deutsche Bank, the second mystery EV is expected to be similar to the Toyota (NYSE:TM) Alphard, a luxury multi-purpose vehicle (MPV) that “sold 20,000 units in China last year.” Deutsche’s second guess is a high-performance sports coupe.
  • Nio recently filed a trademark registration for the name EF9, according to ElectricVehicleWeb. This has led many to speculate that the new vehicle will be a convertible version of the EP9.
  • CEO William Li confirmed that Nio plans on adding three new models to the Nio Technology Platform 2.0 in 2022. One of the models will be the new ET7 sedan. The other two are still unknown.
  • Fans of NIO stock are also waiting for an update on overseas delivery times and availability, especially in European countries. The company will likely answer this question at Nio Day.
  • Li confirmed during a Q2 conference call that Nio had assembled a team to work on a new vehicle brand. In regards to the possible new vehicle brand, Li commented, “The relationship between Nio and our new mass-market brand will be like that of Audi-Volkswagen and Lexus-Toyota.”
  • On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

    More From InvestorPlace

    The post Dear NIO Stock Fans, Mark Your Calendars for This Potential Catalyst on Dec. 18 appeared first on InvestorPlace.

    Author: Eddie Pan

    Continue Reading

    Energy & Critical Metals

    Apple CEO Tim Cook Signed Discrete $275 Billion Deal With China in 2016

    Apple CEO Tim Cook allegedly signed a discrete $275 billion agreement with China back in 2016, in an an effort
    The post Apple CEO Tim Cook Signed Discrete…

    Apple CEO Tim Cook allegedly signed a discrete $275 billion agreement with China back in 2016, in an an effort to appease the country’s authorities that were threatening to halt the distribution of Apple devices and services.

    According to a comprehensive report published by The Information on Tuesday, which cited people familiar with the matter as well as internal Apple documents, Cook secretly entered into a five-year agreement with China via in-person visits throughout 2016. The objective of the deal was to appease the Chinese government, which threatened Apple with bad publicity and accused the US-based tech company of not doing enough for the country’s economy.

    Internal Apple documents reveal that the company’s CEO “personally lobbied officials” to create a “memorandum of understanding” with the National Development and Reform Commission, in exchange for regulatory immunity. The agreement was allegedly devised by Apple’s Chinese government affairs team, was personally served by Cook to Chinese officials, and amounted to more than $275 billion in spending.

    The agreement comprised of a pledge to aid Chinese authorities in advancing their manufacturing capabilities, support domestic talent training, collaborate on research at Chinese universities, sign deals with local suppliers, and make direct investments in Chinese-based tech companies. In addition to that, Apple also agreed to spend billions of more dollars beyond its initial agreement, including setting up new retail locations, exploring renewable energy projects, and creating research and development facilities.

    Information for this briefing was found via The Information. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

    The post Apple CEO Tim Cook Signed Discrete $275 Billion Deal With China in 2016 appeared first on the deep dive.

    Author: Hermina Paull

    Continue Reading

    Trending