IGO to secure Greenbushes stake in $1.9bn acquisition

16 December, 2020

IGO has revealed plans to purchase a 49 percent stake in Tianqi Lithium Energy Australia. The stake is estimated to be worth 1.9 billion and will ensure IGO’s strategy for clean energy metals. 

Once finalised, IGO will have a 25% interest in Greenbushes lithium mining and processing operation in Western Australia. This is the largest operating lithium mine in the world. Furthermore, the company will also receive a 49 per cent interest in Tianqi’s Kwinana lithium hydroxide plant. The plant is also located in Western Australia.

IGO stated that “Lithium HoldCo would become the “exclusive vehicle” for IGO and Tianqi’s lithium investments outside of China.”

The company’s strategy to supply clean energy minerals is well and truly underway according to IGO managing director and chief executive Peter Bradford.

“This is a genuinely transformational transaction for IGO and one that delivers on our strategy to become a global leader in the supply of metals critical for enabling a clean energy future,” he said.

“We see Tianqi, a leader in the global lithium industry and with strong alignment to our strategy, as the ideal partner for IGO. Both Greenbushes and Kwinana are world-class assets with attractive growth profiles that together provide the platform for building a global lithium business.

“We look forward to working with Tianqi to build a leading global lithium business that will play an important role in supporting the global transition to clean energy technologies, while generating substantial value for IGO shareholders for many years to come.”

The future demand of lithium is expected to increase because of clean energy technologies including electric vehicles and renewable energy.

Jiang Weiping, Tianqi founder and chairman also welcomed the company’s partnership with IGO.

“Following an extensive global search, IGO was the clear choice to become our long-term partner to establish a new global lithium business given our shared vision for a clean energy future and unique combination of complementary skillsets,” he said

Article summarised from Australia Mining.