Lithium technology startup EnergyX has proposed a $150 million bid for Galan Lithium’s assets in Argentina, aiming to consolidate the acreage necessary for electric vehicle battery production amidst declining market prices. The bid, which was first submitted on July 11, includes a combination of cash, shares in EnergyX, project financing, and a royalty payment.
In a stock exchange announcement, Galan confirmed receiving an unsolicited acquisition proposal from EnergyX, detailing a $50 million cash offer, an additional $50 million in shares of privately held EnergyX, and another $50 million earmarked for project financing. Galan has been trying to negotiate a confidentiality agreement with EnergyX and is awaiting a response.
Following the announcement, Galan’s shares fell by 16% to A$0.12. This bid comes at a time when lithium prices have significantly dropped over the past year, leading to layoffs at major industry players like Albemarle. EnergyX’s CEO, Teague Egan, expressed confidence in the long-term demand for lithium, stating, “There’s no doubt in my mind that lithium demand will continue to grow later this decade.”
EnergyX has backing from investors such as General Motors and a consortium led by South Korean conglomerate Posco Holdings. The company operates out of Austin, Texas, and is currently involved in projects in northern Chile and North America, having previously lost a bid to develop Bolivia’s Salar de Uyuni lithium deposit.