Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Bacanora Lithium plans to accept Ganfeng’s takeover offer of £285mn ($390mn). The deal includes the shares for its Zinnwald project in Europe as well, the company noted in an exchange filing on Aug 25.


Ganfeng first began working with Bacanora in 2019 through a lithium offtake agreement at the latter’s Sonora project in Mexico and eventually bought a 50pc stake in that project. At a 29pc stake, Ganfeng was also Bacanora’s largest shareholder before making the offer to take over the company’s assets.


The Sonora Lithium project in Mexico will begin production in 2023 and is located 170 km south of the US border, making it well-positioned to supply material to the US auto market.


Ganfeng has increased its focus on lithium mining over the past few months in line with China’s ambitions to expand its capacities for this material. Its latest takeover of UK-based Bacanora Lithium is the third acquisition by the Chinese company for this material in recent months. Ganfeng bought a 50pc stake in Goulamina lithium mine in Mali for $130mn recently. In July, it bought Millennial Lithium of Canada, which has a project in Argentina, for $353mn.

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