Tianqi Lithium and IGO, through their JV Tianqi Lithium Energy Australia, have made a US$93M bid to take over junior Western Australia-based lithium project developer Essential Metals, aiming to take ownership of the Pioneer Dome lithium project.

Tianqi Lithium Energy Australia (TLEA), the joint venture between IGO and Tianqi Lithium has bid to acquire 100% of Essential Metals Ltd (ESS). ESS is currently developing the Pioneer Dome Lithium Project in Western Australia, along with other nickel and gold projects. TLEA will pay A$0.50 per share for a total value of A$136M (US$93M) for 100% ownership of ESS. The Pioneer Dome lithium project would supplement TLEAs 51% share in the Greenbushes lithium mine via Talison Lithium, and 100% ownership of the Kwinana lithium refinery in Australia. Project Blue estimates that in 2022, 29% of total refined lithium supply originated from spodumene mineral concentrates extracted at the Greenbushes lithium mine.

This bid highlights the activity of major industry players looking to consolidate and strengthen their positions in the lithium sector by securing lithium projects in development. The Pioneer Dome Lithium Projects sits in a proven mining jurisdiction, with heavily developed infrastructure, mining codes, facility access, and access to a large consumer base in China. However, the project is currently in the advanced exploration stage and requires further development prior to a feasibility assessment.

In the case of the lithium sector, there has been a number of recent similar acquisitions. In early 2022, Rio Tinto acquired the Rincon lithium brine project in Argentina, while in late 2022, Tsingshan Holdings Group announced an agreement with the Government of Zimbabwe to develop lithium mining and processing operations in the country. With demand for lithium products forecast to exhibit strong and persistent demand growth, further acquisitions of early-stage projects are expected to alleviate concerns over the development and commissioning of sufficient future supply volumes.