Chanticleer

Surging lithium demand sets stage for big deals

The $4 billion merger between Orocobre and Galaxy is about building scale ahead of a lithium supply deficit.

Updated Apr 19, 2021 – 5.05pm, first published at 4.45pm

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The announcement of a $4 billion merger between ASX-listed lithium miners Orocobre and Galaxy Resources comes amid a backdrop of strong pricing for the battery mineral and increasing bullishness about the imbalance of demand and supply.

The deal, announced on Monday, will unite the two in a merger of near equals. Orocobre shareholders will control 54.2 per cent of the company, which will be run by Orocobre chief executive Martin Perez de Solay, with Galaxy chairman Martin Rowley to lead the board.

James Thomson is senior Chanticleer columnist based in Melbourne. He was the Companies editor and editor of BRW Magazine.