Albemarle Seeks Full Control of Greenbushes Lithium Mine

The US Albemarle said it hopes to take full control of the world's largest lithium mine-Greenbushes, Australia, signaling that it intends to block any competitor from acquiring Tianqi Lithium Corp's controlling stake.

Tianqi Lithium owns 51% of Greenbushes' shares, while Albemarle owns 49%. Tianqi Lithium Company is selling some prized assets, including Greenbushes, to pay down its debts.

Eric Norris, head of the lithium metal division of Albemarle, said in a webcast of Benchmark Mineral Intelligence's EV Supply Chain Festival, "We would be interested in taking a controlling stake in that venture, we will keep our position and would like to increase it."

The lithium metal used in the manufacture of electric vehicle batteries is mainly produced in brine and hard rock. Albemarle Group has operated the world's largest brine-type lithium mine in the Atacama Desert in Chile. By taking over the Greenbushes hard rock lithium mine, the group would gain control of another cheap source of this white metal, which Norris describes as the world's best resource.

The financial problems of Tianqi emerged during the period when the lithium industry was facing difficulties. The industry is suffering from oversupply and the coronavirus pandemic. Various factors have paused the electric vehicle revolution. The company said its controlling shareholder planned to sell around a sixth of its holding, which could raise more than $200-million.

Tianqi Lithium has negotiated with several banks on the terms of the debt and other issues, including a $3.5-billion loan to buy a stake in Chilean miner, Sociedad Quimica Y Minera de Chile S.A. (SQM) - Albemarle's biggest rival - two years ago. "My hunch is there's going to be a path out of this for Tianqi that works," Norris said.

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