Lithium miners set big target to feed electric car battery boom

  • May 03, 2021
  • EIN

Galaxy Resources chief executive Simon Hay said the market conditions driving the enormous lithium demand rebound were “completely different” this time around, as the largest growth is coming from Europe rather than China alone. The Biden administration in United States, meanwhile, has laid out plans to roll out 500,000 electric vehicle charging stations and vowed to make all federal fleets fully electric.

“Demand is more solid and it’s across three major fronts, not just one,” Mr Hay said. “Previously, China was carrying pretty much the entire growth, but now Europe and latterly the US are coming along very strongly.”

Although Australia lags many other developed countries in the transition from petrol- to battery-powered cars, the Victorian government on Sunday set a target for electric vehicles to account for 50 per cent of new sales by 2030 and subsidies of up to $3000 for buyers.

The merged company, the name of which is yet to be determined, would be headquartered in Argentina, where Orocobre operates the Olaroz lithium facility and Galaxy operates Sal de Vida. But its primary share listing would remain in Australia.

Under the tie-up, Galaxy shareholders would receive 0.569 Orocobre shares for each Galaxy share. Orocobre shareholders would ultimately own 54.2 per of the combined entity and Galaxy shareholders would own the remaining 45.8 per cent. The proposal will be put to a shareholder vote and the companies are hoping to have the deal implemented by mid-August.