Summary: Tianqi Lithium proposed to acquire Australian lithium miner ESS for USD90.97 million (RMB632 million) to get 11.20 million tonnes of lithium ores.

Tianqi Lithium Corporation (Tianqi Lithium) announced on 9 Jan. that it recently approved the Proposal of Equity Purchase on Australian Essential Metals Limited (ESS) by the Holding Subsidiary and Signing for the "Agreement on Planning Implementation". This was done to diversify and expand its lithium ore portfolio. With the aim of acquiring 100% of the business for approximately USD90.97 million (RMB632 million), its subsidiary, Tianqi Lithium Energy Australia Pty Ltd. (TLEA), intended to enter into a Scheme Implementation Agreement with the Australian listed firm ESS.

After the deal is concluded, TLEA will own 100% of ESS's outstanding equity and the mining rights of its Pioneer Dome Lithium Ore Project.

Following ESS's Lithium Ore Resource Upgrade Announcement on the Dome North Project published by the Australian Securities Exchange (ASX) on 20 Dec., 2022, the total lithium mineral resource was 11.20 million tonnes @ 1.16% Li₂O containing 129,000 lithium tonnes. Eight exploration licenses, one approved mining lease, and one approved miscellaneous license are all in place for the 450 km² Pioneer Dome Lithium Ore Project. This project has a mine life of 6.19 years based on a back-calculated resource quantity predicted by its current exploration depths. The mine life could be extended along with the quantity of resources as new reserves are added in the future with increased exploration breadth and depth.

Due to the high development costs of domestic lithium mines, overseas resources continue to be the focus of attention for upstream companies, and increasing foreign layouts is already a significant industrial trend. In keeping with its development strategy and global business planning, Tianqi Lithium believed that purchasing ESS will help diversify and increase its lithium ore reserves.