Local players size up Canadian lithium miner Patriot Battery Metals

Patriot Battery Metals is focused on the acquisition and development of projects containing battery, base and precious metals.

First it was Mineral Resources, then Pilbara Minerals, now it’s Wesfarmers that is said to have been looking at Canadian lithium explorer Patriot Battery Metals.

Chris Ellison’s miner Mineral Resources is known to be acquisitive, while Patriot Battery Metals is now chaired by former Pilbara boss Ken Brinsden so the connection has plenty in the market talking about a tie up.

Patriot Battery Metals is focused on the acquisition and development of projects containing battery, base and precious metals. It has a market value of $C1.45bn ($1.55bn).

Pilbara Minerals recently hired as its chief development officer Macquarie Capital investment banker John Stanning. But Pilbara chief executive Dale Henderson said at a recent Melbourne Mining Club event that the company had a lot on its plate and was in no hurry to do anything right now.

Yet Mr Henderson did not rule out a move on Patriot Battery Metals in the future and he said Mr Stanning would start the process for the business of thinking where to invest next.

Wesfarmers, though, has also apparently been looking at opportunities in the new minerals space

The share prices of lithium producers globally are soaring on the back of the transition toward electric cars and there is plenty of merger and acquisition activity being discussed, including a potential move overseas on Sigma Lithium by Tesla.

It is no secret that Wesfarmers has its eye on the lithium space for deals. It tried to buy rare earths processor Lynas in 2019 for $1.5bn. It walked away when its offer was rejected. Lynas’s market value is now $7.5bn.